AS the long-awaited report by the government working party on pensions was published today, the grim prospect was raised of millions of people - six out of ten - facing poverty in retirement.

But the evidence is that much of this is their own fault.

Millions of employees who could afford to contribute to a pension scheme do not bother and are relying on the state pension to support them when they stop working.

Yet the state scheme is under growing pressure - as the fact of people living longer shifts the balance between contributions and payments and how much the system can provide.

Clearly, back-up provision will have to be made.

Now the government is looking to setting up second-tier pensions for those who cannot afford more expensive schemes.

But as well as providing incentives to encourage people to join, it may also have to resort to compulsion if mass poverty and demand on an over-strained welfare state is not to be the hallmark of old age in the future.

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