Partnership Pensions proposal submitted

A proposal for a private sector alternative to the government's National Pension Savings Scheme (NPSS) has been submitted to the work and pensions minister today.

John Hutton received the plans by the Association of British Insurers (ABI), which believes its Partnership Pensions will have lower start-up and maintenance costs that the NPSS for at least a decade.

The ABI also claims that its scheme will introduce new portable personal accounts for workers, which will be supported by auto-enrolment and contributions from the companies they work for.

Director General of the ABI Stephen Haddrill says the association is confident that the private sector can ensure more effective delivery of the Pensions Commission's goals.

He says Partnership Pensions will be radical and innovative and will simplify pensions for those saving money individually as well as for their employers.

The ABI believes its proposal will reduce costs as well as benefit those saving money by increasing competition and choice.

Mr Haddrill adds: It will also extend pensions saving to a much wider market, thereby helping to close the savings gap and ensure that many more people will be adequately provided for in retirement.

Earlier this week, consumer rights group Which? claimed that the NPSS could help average earners accrue £15,500 more over the lifetime of their pension when compared to the financial services industry model.

Pensions

Partnership Pensions proposal submitted

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