Forced saving for retirement would amount to a tax rise, new shadow pensions secretary Sir Malcolm Rifkind said today.
David Blunkett yesterday signalled a move towards compulsory pensions when he told BBC Radio 4's Today programme that he hadn't "ruled out the issue of some sort of means of ensuring that people do save."
And Adair Turner, head of the pensions commission, told BBC Radio 4's The World At One today that there was no getting round the need to pay more taxes, save more or retire later. "We need a different policy than simply muddling through," he said.
"We need to plan in advance what mix of those things society plans to do and individuals plan to do. And we need to plan a much more coherent framework within which individuals can make sensible decisions."
Sir Malcolm agreed government action was needed but warned against compulsion.
"The real choice in this area is between using incentives to try and win people to save more or going the compulsion route," he said.
"It will not surprise you to know that all my instincts tell me that compulsion is another form for general taxation. It is rather like the old controversy about the national insurance system.
"You say it is there for a specific purpose but it is just like adding to people's tax bills."
Mr Turner said that his final pensions review would be complete by the end of November. The interim report warned last year that 12 million people were not saving enough for retirement.
