Pensions analyst warns about personal account problems

Fri, 18 May 2007

The government is in danger of alienating financial services providers with its personal account proposals, a pensions analyst has claimed.

Stephen Haddrill, director general of the Association of British Insurers, has made his comments in a speech addressed to the Future of Life Assurance symposium organised by the Institute of Economic Affairs.

Explaining his stance, Mr Haddrill contended that the government was "failing to live up to" a promise that the new national pensions savings scheme would not compete directly with existing pension plans.

And he added that the best approach would involve narrowing the scope of the proposed pensions initiative to more accurately reflect the needs of its original target audience.

"The government must refocus this policy on its target market of low and middle-income employees and pull back from its plans to expand into existing pension savings," he argued.

It is widely expected that the national pensions savings scheme will be formally rolled out in 2012.

The scheme, which features automatic enrolment, has been designed to boost pensions provision among people who are not currently saving adequately for their retirement.


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