NPSS cap would hit savings says Which?

Government proposals for personal accounts, outlined in a December white paper, includes an annual contribution limit of £5,000 - £2,000 higher than the level suggested by the Pensions Commission. This has raised concerns among the life and pensions industry that the new system could compete with existing products. However, while the Government has confirmed it is rethinking the contribution limit following representations from the industry, Which? says only 12% of the target market for personal accounts – low to median earners – believe there should be an annual limit. In addition, the ...