Most MPs support compulsory plans

A year to the week after stakeholder pensions were introduced, new research has found that most MPs would like to see payment into pensions made compulsory.

The research, commissioned by Virgin Money, also found that while MPs were behind the idea of everyone putting away money on a regular basis, 64% remained unconvinced that the public were ready for such a move.

However the results may have exposed MPs as out of touch with public opinion. A total of 77% of people in the survey said they thought compulsion was a good idea and 50% said they would be willing to contribute 5% of their salary. It appears that the recent furore about the declining value of pension funds, and the closure of many final salary schemes, has pushed pension concerns up the electorate's agenda.

There was also significant support among MPs for making employers' contributions to staff pensions compulsory.

Gordon Maw of Virgin Money said: "Many people were facing a pension shortfall long before employers began withdrawing major benefits such as final salary schemes. Compulsion is now the only way to fill that gap."