Personal Accounts Charges Consultation: Pensions
Published / Last Updated on 17/02/2008
Personal accounts charges have been put to consultation by the pensions industry. New, compulsory pensions, known as Personal Accounts start in 2012 where employers and employees will be required to pay compulsory pension contributions into personal accounts.
The charges structure of personal accounts has been put out for consultation by the Personal Accounts Delivery Authority. Charges levels for personal accounts will depend on the final design, costs and revenues, which will not be known for some time.
The Personal Accounts Delivery Authority is looking for input on a number of options. This may be in the form of an annual management charge for personal accounts, a contribution charge for personal accounts, a joining charge or a combination of a lower contribution charge with an annual management charge.
Our view
It is important that personal accounts charges are clear and fair. If they are not, many people will not save more than the compulsory level in personal accounts.
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