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Sep 12, 2006
The ABI
(Association of British Insurers) has drafted up a plan for delivering new
personal accounts for pension savers by 2012. In response to the UK government's
recently published pensions white paper, ABI published “Making a Success of
Personal Accounts”, a plan that provides details on how the government’s plans
for Personal Accounts can be implemented.
ABI says its
proposals are expected to boost overall levels of saving and help increase
incomes in retirement, particularly for people on low or modest incomes. Making
a Success of Personal Accounts suggests that savers in personal accounts should
be entitled to the full efficiency and service benefits generated by
competition between providers and sets out details of how this model would work
for savers and employers.
ABI also proposes the
establishment of a new entity that will ensure that personal accounts are
implemented promptly to increase both the number of people saving and the
amount saved. ABI says the delivery authority should evolve into an economic
regulator with reserve powers to impose a cap on charges if this is necessary.
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