personal accounts

Consumers with high levels of credit card debt or saving for a deposit on a house might want to opt-out of saving into the proposed personal accounts, suggests Minister for Pensions Reform James Purnell.

Ahead of the publication of the DWP's Pensions White Paper, IFAonline brought together six intermediaries to share their thoughts with James Purnell, Minister for Pensions Reform, about current proposals for personal accounts.

It is thought the Department for Work and Pensions will release its White Paper on pensions reform next week, specifically presenting proposals for the introduction of personal accounts.

Opposition parties have criticised some of the contents of the first Pensions Bill including the delay in restoring the link to earnings for the Basic State Pension.

Differences in the individual suitability of personal accounts could cause problems in producing clear generic advice, claims the Pensions Policy Institute.

The Secretary of State for Work and Pension will have the authority to wind up the 'Personal Accounts Delivery Authority' if he considers it to be no longer necessary.

The Personal Accounts Delivery Authority will need the help of the financial services industry to design the generic advice which is "crucial" for personal accounts, claims John Hutton.

Next week's Pension Bill will include the first step in setting up an independent Personal Accounts Delivery Authority , which will have a 'significant degree' of autonomy.

Personal accounts are not a "silver bullet" and could do "lethal damage" to the pension and savings market, warns Alan Pickering.

The second pensions white paper on personal accounts is now expected to be released on 12 December.