Almost three-quarters of workers would save more towards their retirement if the Government matched their contributions, research showed today.

About 71 per cent of people said they would put more into a pension if the Government contributed the same, while 69 per cent said they would increase their saving if there were better tax advantages, according to Virgin Money.

Almost two-thirds of workers said they would save more towards their retirement if their contributions were matched by their employer.

Just under three-quarters of those questioned rejected the idea of working past the current state pension age of 65 to boost their retirement income.

Virgin Money is calling on the Government to introduce a system of matching contributions to encourage those who are not saving for their retirement to pay into a pension.

Under Virgin Money's scheme, which would be means-tested, it is suggested the Government should match contributions up to a limit of £500.

It added the scheme could be funded out of the £5 billion Chancellor Gordon Brown has made since he scrapped tax relief on share dividends for pension schemes.

Virgin Money spokesman Scott Mowbray said: "The findings are clear. People need tangible incentives to save and the majority of people would prefer a simpler matching scheme over the current system of tax relief."

"By encouraging people to save for their twilight years now, the Government can close the savings gap and get more people off the state balance sheet when they stop working."

Wednesday November 19, 2003