PLANS FOR A new low-cost savings scheme to tackle Britain's looming pensions crisis are gathering momentum in spite of objections from pension funds and the insurance industry, reports The Financial Times.
In his first interview on pensions policy since Lord Turner’s Pensions Commission reported in November, John Hutton, the work and pensions secretary, told the Financial Times its central recommendation for a National Pension Savings Scheme (NPSS) remained the government’s frontrunner because of its low annual management costs. Insurers and pension funds have submitted alternatives, arguing the NPSS, with automatic enrolment of employees, was too “statist” and that the annual fees could not be cut to the 0.3% Lord Turner set as a target. Although questions remain as to how contributio...
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