The Director General of the ABI, Stephen Haddrill, has called on the Government to raise the initial rate of employer contributions to Personal Accounts, from 1% in the first year to 3%.
Speaking at Punter Southall’s ‘DC: Deceptively Complicated?’ pensions conference, Haddrill says the move is necessary because the Government has been “wildly over-optimistic about the level of participation expected”. He adds it should not expect to fall back on subsidies funded by the taxpayer to achieve the 0.3% management fee target. Haddrill told the annual conference, attended by 150 pension fund delegates, that the annual contributions cap for Personal Accounts should be no more than £3000. He says this is crucial to ensure Personal Accounts serve their purpose of providing low co...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes