Compulsion would cost State £4bn - Aon

The firm says introduction in the UK of compulsion at a rate of 9% of pay - assuming the current Australian model - would leave the government with a £4bn tax relief bill every year. Aon argues under compulsion, cash which previously fell into wages or profits, and which are taxable, would instead go into pensions savings, thereby attracting tax relief. Donald Duval, chief actuary at Aon Consulting says: “With compulsion being on the agenda of many politicos during the build up to the UK election, proponents of compulsion need to outline how they will fill the hole in Government finance...