The Association of British Insurers is supporting the recent Government proposals for a Child Trust ...
The Association of British Insurers is supporting the recent Government proposals for a Child Trust and Savings Gateway by backing the research paper published by the Institute for Public Policy Research (IPPR) - 'Asset-based welfare takes centre stage' - on ways of helping people to save and build up capital of their own.
The paper published today promotes the asset-based approach which is designed to encourage those on low income to save and invest, and enable them to become less dependent on the state.
Research published by the IPPR shows that at present around 10% of the population have no assets. The new approach links savings to welfare provision and gives those on lower incomes an incentive to save and accumulate assets.
Mary Francis, Director General at ABI says: "Traditionally, welfare provision in the UK has been based on income rather than assets.
"But, as IPPR's research shows, the development of a savings culture across society - including those on low income - may do more, over the long term, to reduce poverty than the current, very heavy reliance on income-based welfare."
"What is crucial - as the asset-based approach moves up the political agenda - is that the right schemes and products are developed, and that the regulatory and tax environment is straightforward enough to encourage, rather than deter, new inexperienced savers," adds Francis.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
Follows string of appointments
Follows acquisition of BlackRock's DC platform
‘In the know’
£116.8m of benefits received by customers