Calls are being made for the government to be more realistic over pension scheme predictions, amid concerns over the cost of a new National Pensions Savings Scheme (NPSS).
Experts at the Association of British Insurers (ABI) urge the government to be realistic in its cost assumptions and take all the necessary factors into account, including scheme participation rates.
According to the ABI, policymakers have underestimated the overall cost of the NPSS, which the government expects to cost somewhere in the region of £5 per person.
ABI officials speculate that the actual cost could be closer to £20. Spokesperson John French explained how the government may have failed to assess the details of the NPSS.
He said the association believes the government needs to be "a lot more realistic" about its assumptions.
"We don't think that they have underestimated their set of cost assumptions, but it's all of their other factors to do with the detail and design of personal accounts which we don't think the government is going down the right track on," Mr French added.
Earlier this week ABI director-general Stephen Haddrill voiced concerns over the introduction of a new NPSS to the Work and Pensions select committee.
Expert urges realism over pensions
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Expert urges realism over pensions
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