Britons 'drifting towards pensions iceberg' as flagship Government scheme ... - Telegraph.co.uk

"Some people might think about quitting their new pension, but we urge them to stick with it and get saving for their old age. Leaving the pension would mean losing tax breaks and employer contributions which are, in effect, 'free money'," she said.

Ms Segars warned that without radical reform like auto-enrolment, Britain's pensions crisis will deepen.

"This is a game-changer that will get millions of people saving for their retirement. The UK is drifting towards an iceberg when it comes to paying for its old age, and we need radical reform like this.

"Things have got to change. Less than half the workforce is saving into a pension and, without auto-enrolment, millions would end up scraping by on the state pension alone. Putting everyone into a workplace pension will help reverse years of decline in retirement saving," she said.

Ms Segars added that the reform "will reach those who have no pension – the young, the low-paid, and those working for small businesses".

Mr Webb has described auto-enrolment as the biggest reform to pensions in Britain "for over a century".