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Rohde said allowing people to opt-out of the new "savings-based" system would complicate the provision of pensions for them from the tax and benefits system. He pointed out that in Denmark people were left uncovered by the labour market and corporate pensions systems who would expect additional pensions to the state provision. "Denmark is some years ahead of the UK in having this problem", he said.
He said he saw dangers in trying to run a savings-based pensions system in such conditions, adding that it may be possible to fool some of the people some of the time, but "not all of the people all of the time". Rohde also said that concerns about the UK's opt-out provisions had been among the reasons why ATP pulled out of the bid to run the National Employment Savings Trust (NEST) system.
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