The UK can learn from New Zealand's pension system ahead of the personal accounts launch, says pensions administrator Xafinity Paymaster.
New Zealand launched KiwiSaver, its national pension scheme based on auto-enrolment of workers through their employers, in July. The scheme has attracted more than 200,000 members, a 64% increase since the end of August, according to New Zealand’s Inland Revenue.
Many pensions industry specialists, Xafinity included, have been gauging the success of KiwiSaver with bated breath, especially as personal accounts – planned for 2012 – loom increasingly large on the horizon.
Clare Ward, director at Xafinity Paymaster, says: “Those aspects of the KiwiSaver scheme which may be transferable and relevant to personal accounts – especially automatic enrolment, through employers – are worth keeping a close eye on. In addition there are significant lessons to be learned from the launch particularly the systems integration challenges and the way the press was handled.”
Yesterday Paul Myners, chairman of the Personal Accounts Delivery Authority (PADA), said the personal accounts scheme will rely on effective communication to employers and employees. Meanwhile the Minister for Pensions Reform Mike O'Brien reiterated personal accounts will complement rather than compete with existing pension schemes.
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