Aegon calls for financial security for personal accounts

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Aegon is calling on the Personal Accounts Delivery Authority (PADA) to make the long-term financial security of the personal accounts scheme top priority when recommending charging structures.

Aegon believes that unless PADA and the Government choose a charging structure that matches charges received and costs incurred, they will put the security of member benefits at risk and increase the level of taxpayer subsidy. Aegon points to PADA's own analysis and independent modelling by the Pensions Policy Institute, which shows that some form of upfront contribution charge is needed to ensure financial sustainability. Aegon believes a charging structure combining a modest percentage contribution charge with an annual management charge is the best way to safeguard member interests and...

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