What would you rather do with your money - go out and enjoy yourself, save for a new stereo or diligently put your spare cash into a pension?

Well if you uttered the word pension anywhere near a twentysomething you'd probably just get a dirty look.

But the UK Government has got other plans. It aims to transform a generation of good-timers into savers, with the introduction of stakeholder pensions.

They plan to give incentives to moderate earners to save for their retirement, to take the pressure off the welfare system.

But surely saving for old age is the last thing on young people's minds? Will the government be able to persuade you to part with your money?

Social Security Secretary Alistair Darling warns that if action is not taken, one in three people retiring in 30 years will live out their old age on means-tested benefits.

"People will be left in no doubt where they stand if they don't make necessary provision, " he said.

Conservative spokesman Iain Duncan Smith does not think the government is going far enough.

"I think this will be forgotten about in the next 10 years as we will have to come forward with something far more radical."

However it will be a tough job convincing people, according to Mark Colgate at Investment Week magazine.

"When you are young, you think you're never going to get old and you're never going to die."

What do you think?

Should you be made to save for old age?

Your reaction in full

Back to top | BBC News Home | BBC Homepage | ©