Commenting on publication of the latest Pensions Bill, Maggie Craig, the ABI’s Director of Life and Savings, said:

“The ABI supports personal accounts, providing they add to saving rather than undermining existing pension provision.

“There remains a risk of damage to existing provision if employers with good workplace schemes are not exempted from needing to run personal accounts, and therefore choose to level down contributions. And if random additional contributions can be made to personal accounts from other savings, this potentially moves personal accounts away from the focus on their target market or low and moderate earners.

“On both points, the Bill promises regulation but does not yet make clear what the Government will do. The ABI believes it is vital that these matters are clarified.”

Notes

1.            Enquiries to:       

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         Kelly Ostler        020 7216 7415 (Mobile: 07968 364 302)      

2.            The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.