The Association of British Insurers is urging the government to drop the idea of a specific price for personal accounts, calling the idea ‘economically unfeasible'.
In its response to the consultation on the pensions white paper, which closes on Monday, the ABI has refused to quote a specific cost for the delivery of personal accounts because there are too many variables involved. It says while the Pensions Commission and government are right to be concerned about charges, it is wrong to try and be so prescriptive and suggest an annual management charge (AMC) of around 0.3%. The ABI says the actual level of charges will depend on a number of factors such as the final design of the scheme, the level of participants in the scheme and how frequently p...
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