personal accounts

BANKS, LIFE assurers and fund managers are to be given leading roles in setting up and eventually running the government's proposed low-cost national pensions savings scheme.

Around 80% of the working population say they would be able to afford the minimum contribution to a new system of personal accounts.

Government departments should work closely with organisations such as Citizens Advice and the Resolution Foundation on finding ways to provide clear generic advice on personal accounts.

The Liberal Democrats have expressed doubts as to whether the pensions white paper offers the right foundation for the introduction of personal accounts.

Proposed pension reforms do not provide a solid foundation for the introduction of a national pension savings scheme.

The concept of personal pension accounts has been broadly welcomed by the public, according to the government.

Pensions reform needs to meet three objectives if it is to be effective in meeting its aim of targeting young people who are not saving.

The government should not be complacent about the risk of employers levelling down pension contributions if personal accounts are implemented.

People postponing retirement saving until the white paper reforms come into effect in 2012 could lose up to 50% of their income.

John Hutton, secretary of state for Work and Pensions, has admitted the new system of personal accounts announced in the pensions white paper will not come with a government guarantee in the event of failure.