After much debate and consultation the Department for Work and Pensions (DWP) has reached a decision regarding the limit on new National Pension personal pension accounts.
The cap has been set at £3,600 per year and this has been welcomed by most of this industry, as it will reach the target market of low to middle earners. The Association of British Insurers is pleased that the government has listened to the industry and responded to its concerns.
Our view
Many in the industry would have liked to see the cap kept at the original level of £3,000. We believe that the government has struck the right chord here. This is the same level as non-worker Stakeholder pension payments and makes life much easier for all. You can learn about the new National Pension Savings Scheme in the Pensions Adviser.com.