Contribution charge 'only fair solution' to personal accounts

In a speech on implementing personal accounts today, Maggie Craig, director of life and savings at the ABI, recommended a contribution charge in addition to an annual management charge (AMC). She says: “If charges are high, that will only encourage high rates of opting out and significantly compromise income returns down the line. Equally, charges that are too low will require sustained high levels of supporting public subsidy, penalising the taxpayer and the large numbers of those who will choose to save outside personal accounts. “Like so many things, there needs to be a workable balanc...