The government has admitted while it is confident the cost of personal accounts can be lowered as far as 0.3% over the long term, the true cost for employees "cannot be estimated with certainty".
Details of the Pensions White Paper – Personal accounts: a new way to save – just issued by the Department for Work and Pensions reveals the government is still pushing to lower the charges of personal accounts to as much as 0.3% over the long term, but in the short term anticipates charges can be lowered to as much as 0.5%. In Chapter 4 of the White Paper on charges and financing, the DWP says: “The government believes that personal accounts could deliver an AMC possibly as low as 0.5% in the short term and below 0.3% in the first 10 years. "The government is confident that charges in t...
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