Larry Fink, the chief executive of investment giant BlackRock has said that the government in the UK should make savingfor retirement mandatory in the UK.

While speaking to delegates at a pensions conference in Edinburgh, he said that employees should not have the right to opt out of employer schemes as they can easily use the scheme. He said that allowing people to opt out of the pension scheme will let many people work without savings for retirement.

Under the new auto-enrolment of pension scheme, around 38,000 British businesses will be required to auto-enrol their employees in company pensions during the next year. Firms that have lower number of employees will have to join the scheme within the coming five years. Both the employer and the employees are required to pay into the pension scheme.

Fink warned that the UK has limited savings indicating that the government should make pensions saving compulsory in order to boost savings in the country. Fink also said that the situation poses risk as people might not opt out or not put enough away for retirement.

BlackRock is the world's biggest money manager with $4 trillion under management.