The government is being ‘optimistic' about the amount of new savings which will be generated by personal accounts, claims Aegon Scottish Equitable.
In its response to the pensions white paper: ‘Personal accounts: a new way to save’, Aegon says analysis of research carried out by Deloitte reveals on average the target market for personal accounts are saving almost 9% of their income. As a result, the company says the government risks “significantly overestimating” the amount of new saving which will be generated by personal accounts. Instead, it says much of the money invested in the new scheme will be redirected savings from both the target and wider savings market. Aegon says the Deloitte research shows people in this target market...
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