Personal Accounts: National Pension Impact

Personal Accounts: National Pension Impact

Personal Accounts will change the face of pensions according to Paul Myners, chairman of the Personal Accounts Delivery Authority.

New personal accounts for pension savings at work will mark ‘a major change to the landscape of pension provision’ and will have a ‘powerful impact on people’s lives’.  During a recent conference in Edinburgh he said that passive management is likely to be at the heart of the personal accounts default fund.

Our view

What planet are you on Paul? People will only save what they can afford to save.  If people currently save £100pm in an ISA or £300pm in a pension, introducing a new compulsory pension forcing people to pay in will only mean they redirect what they were saving away from their old savings plan into a new one.

It happened in Australia when they introduced a compulsory pension scheme.  It will happen here.

Useful links:

Learn more about Personal Accounts and related topics in the Pensions Adviser Channel 

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary