Employees have been urged not to opt out of auto-enrolment when it is introduced next year.
The government has launched the initiative to encourage more people to save for their retirement using a company pension scheme, which all employers will be required to provide for eligible workers from October 1st 2012.
Although staff members have the choice to opt out if they wish, head of dispute resolution at The Pensions Advisory Service Tony Attubato advised against this.
He explained the amount of money people have to enjoy later in life is directly linked to how much cash they put aside when they are working.
Therefore, if they choose not to take part in the auto-enrolment scheme they could be affecting their standard of living in the future.
"You might have short-term reasons for not joining, but your long-term financial health may be damaged by doing so," Mr Attubato stated.
He urged individuals to think carefully about the decision and consider the implications if they decide to opt out when the initiative is introduced from next year.
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