NPSS costs are 'over optimistic'

Giving evidence at a Work and Pensions Select Committee hearing on personal accounts, Stephen Haddrill, director general of the ABI, says it is very hard to say if the government has got its sums wrong as it has not made public the modelling and figures it has used. However, he warns there are large uncertainties around assumptions the government has made in certain areas to try and meet annual management charges of 0.3%, such as the level of participation predicted in the new scheme. Haddrill points out the government has done its sums on the basis of the kind of participation levels in...