Government open to persuasion on Npss cap

Speaking at a National Association of Pension Funds (NAPF) seminar on the design of personal accounts, Purnell stated one of the measures the government had proposed to avoid “mission creep” into levelling down is a contribution limit of £10,000 for the first year and then £5,000 for subsequent years. However this is higher than the £3,000 limit proposed by Lord Turner in his second Pensions Commission report and is seen by many in the industry to be too high for the target group. Purnell says the government has proposed a higher limit than Turner, as there is a danger people on low inc...