Proposals for personal accounts outlined in the White Paper will follow one of two directions, in which both do away with advice to cut costs.
The Government have said that they will develop a full employer communications and education package to support the introduction of the scheme and help staff make a range of choices without the need for advice.
Depending on how the government structure the scheme, the choices will include whether to auto-enrol into the scheme in the first place, a choice of provider or administrator, a basic choice of investment, and whether and when to opt out.
Our view
Difficult one this, most employer schemes are run with no advice anyway. However, we believe this is a real problem as many thousands of people will make mistakes. Advice should be allowed for with a simple flat fee per member just to guide employees.