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ABI response to the DWP pension reform and response to prelegislative scrutiny

In response to the DWP pension reform and response to pre-legislative scrutiny

Steve Gay, Director of Life, Savings & Protection, ABI comments:

"We agree it is vital that savers have confidence that the pension savings system can be relied on and charges are an important part of that.  However,  the Government’s decision to ban consultancy charging in automatic enrolment schemes creates a different risk to the success of pension reform in that it will reduce the availability to employers of advice and support to ensure they make the right pensions decision for their employees. We need to discuss how that risk can be mitigated.

"Pensions charges generally have fallen dramatically over the past decade and the average charge on new automatic enrolment schemes is currently at 0.52%. The industry charges agreement announced in January will ensure that pension charges and costs to employees are disclosed in a consistent and transparent way. The industry will continue to engage with the Government ahead of the proposed consultation.”

Last updated 01/07/2016