The impact of means-testing on people saving in personal accounts might have been ‘underestimated', leading to potential 'mis-selling', warns the Association of Consulting Actuaries.
In its nine-page response to the white paper consultation: ‘Personal Accounts: a new way to save’, the ACA points out some employees - specifically lower paid women now aged 45 to 60 and men aged 50 to 65 - would be “very unlikely to build up sufficient benefits” in personal accounts to offset the Pension Credit they would lose as a result of saving. And although it admits the government touched on this issue in a part of the white paper, the ACA says “we suspect the impact has been underestimated”, and as a result it says this issue will need to be “carefully monitored on a year by year ...
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