Personal accounts could wipe 5 years savings off GPPs

Research by the provider shows the pension income paid out after 25 years of saving into a personal account roughly equals the income paid after 20 years saving into a typical GPP for low to moderate earners. Aegon attributes this to the fact the Government will base contributions to personal accounts on band earnings while it bases GPP contributions on full salary, and employers usually contribute more than the default 3% personal account level. The provider says the main levelling down threat to GPP and group stakeholder pension members comes from the European legislative barrier to au...