National Pensions Savings Scheme 'beneficial' says Which?

www.moneynews.co.uk > Pensions > National Pensions Savings Scheme 'beneficial' says Which?

National Pensions Savings Scheme 'beneficial' says Which?

Thu 9th Feb 2006

Consumer rights organisation Which? has claimed that the National Pensions Savings Scheme could offer £15,500 more than the financial services industry model.

The NPSS scheme charges a monthly rate of 0.3 per cent while the proposal from the Association of British Insurers (ABI) is a rate of 0.7 per cent.

Which? claims that someone on an annual salary of £23,000 would pay £621 less per year on an NPSS pension than with the ABI option.

It was even suggested that the industry charge rate could rise to one per cent, in which case NPSS members would be £1,044 better off than those on the ABI scheme.

Principal policy adviser for Which? Mick McAteer said: "We have a unique opportunity to create a consumer-focused pensions scheme with NPSS.

"Industry claims to be able to run a scheme with a charge of 0.7 per cent, but there's no way they can deliver at this level when experience of stakeholder pensions shows us that they couldn't even deliver at 1.5 per cent."

Details of the consumer organisation's campaign to attract savers to the National Pensions Savings Scheme can be found on the Which? website.

Related News : Pensions
	Over-55s don't believe in paying for care, reveals Aviva
	East Midlands comes top in pension contributions
	Corporate pensions provider issues advice for businesses
	One third of workers have no pension, claims Prudential
	More than a third of Brits fail to reassess pension risk, claim experts
	Women protest at No 10 over proposed pension reforms
	Retirement age 'to be brought forward by ten years'
	Interest rates held at 0.5 per cent by Bank of England
	Pension contributions fall in recession, ONS reveals
	Equity release for retirement 'might not suite every household'