NPSS will take 30 years to 'break even'

In its submission to the TSC, Standard Life says the flat annual management charges as proposed by the Pensions Commission would not cover the substantial investment required in the early years of any new system. Its analysis, based on the estimated costs contained in the second Pensions Commission report and the assumption around 200,000 people a year will drop out of the scheme, reveals the NPSS, in its original design, would run up debts of £3.5bn by its 18th year, and would not break even for 30 years. Standard Life uses the assumption six million people will save through the NPSS a...