Personal Accounts Will Fail

Pensions Policy Institute

The Pensions Policy Institute believe that Personal Accounts will fail unless they get widespread support from employers and their staff.  The Government plans to introduce wide-ranging pensions reforms from 2012.  Employers will be required to auto-enrol eligible employees into a work based pension scheme or a personal account and contribute 3 per cent of earnings.  

The Pensions Policy Institute claim that the reforms are likely to increase the number of people saving in a pension, they believe at least 4m and up to as many as 9m new people saving in a work based pension scheme.  

Our view

We do not believe this is a question of support to ensure success.  In short, compulsory pension planning is on its way.  Both employers and employees will be forced to pay into a pension scheme anyway, so Personal Accounts will not fail.

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