LONDON - The Institute of Directors has called for mandatory pension savings to replace the State Earnings Related Pension Scheme.
But the influential business group said compulsory savings should be at a flat rate, not related to earnings as urged under a proposal by Frank Field MP, chairman of the Commons' Social Security Committee.
Those temporarily making low incomes would pay less and make up the difference later, while the chronically poor should be subsidized by the state, the IoD argued.
The level of savings should be tied into a review on providing for health and long-term care for retirees, the group said.
