News

Personal accounts 'must compliment existing pensions'

The government must ensure that personal accounts complement, instead of compete with, existing pension provision, it has been claimed.

Director general of the Association of British Insurers (ABI) Stephen Hadrill warned that unless this was complied with, the government's programme of pension reforms could fail.

Personal accounts are part of government pension reforms and under current proposals, workers will be automatically enrolled in them from 2012 unless they have an occupational pension scheme or opt out.

Speaking to the Institute of Economic Affairs' Future of Life Assurance conference, Mr Hadrill claimed that the government had said throughout the process that personal accounts must not compete with existing pensions, but that it was failing to live up to this promise.

He commented: "It is no good just saying the right thing; from now on, the government must do the right thing as well."

Mr Hadrill added that the government had only started to address certain issues such as problems with auto-enrolment of pensions, but that it had now started to engage constructively with the ABI.

If the proposals fall short, discrimination could be caused between different forms of work-based savings, he warned.

Insurances Limited “Any products must work in synergy, it is important that the Government does not rush into a decision without appropriate industry consultation.”


© See Terms and Conditions