Improved returns will pay for Npss advice

At the moment proposals put forward by the government for personal accounts suggest annual management charges should be somewhere between 0.3% and 0.5% per year, which it admits can only be achieved by stripping out the individual tailored advice provided by IFAs. It is continuing arguments first put forward by Lord Turner in the Pensions Commission’s second report in November 2005, which states lower charges on the new scheme, also known as the National Pensions Savings Scheme (Npss), could boost final pension values by 25%. However Skandia claims these figures are “dwarfed” by the pot...