Personal Account Charges _ No Impact

 Personal Account Charges - No Impact

The Government’s own figures for personal account charges have revealed that people with less than 20 years until retirement in 2012 on salaries of up to £25,000 will see negligible benefits from personal accounts.  The figures show that individuals in these categories would only see returns for lower personal account charges of between 1 and 3 per cent greater than if they did not save in the scheme.  The figures are calculated for workers who do not already have private pensions and who would be saving at the default rate.

This just proves what a shambles this is.  We have been saying for many years that people over 40 should be left to their own wealth creation devices.  The reality is that for people aged over 40, their employer will be forced to pay in 3% and the employee 4% of salary, all to improve their overall retirement fund capital position of around 3%.

Most people can me or lose this is a property or in a bank account in 6 months.  We suggest this is an unjust position to destroy the pensions industry and force people to invest their money where they do not want to and to then not then them access it as they would like when they retire.

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