Personal accounts: fifth report of session 2006-07, Vol. 1: Report, together with formal minutes, Volume 1
The Stationery Office, Mar 29, 2007 - Business & Economics - 98 pages
In light of current estimates that around seven million people are currently undersaving for retirement, the Government published a White Paper ("Personal accounts: a new way to save", Cm. 6975, ISBN 9780101697521) in December 2006, setting out proposals to reform the private pensions system and promote a new pensions saving culture. It sought to introduce a new scheme of personal accounts to provide access for people on moderate to low incomes to affordable and trusted, low-cost pension saving. All eligible employees would be automatically enrolled in either a personal account or an employer-sponsored scheme, with a new national minimum employer contribution of three per cent and tax relief equivalent to one per cent. The Committee's report welcomes the proposals for a new system of personal accounts and makes a number of recommendations designed to ensure the system is as simple as possible for employers and employees and operates effectively, including using the PAYE system to collect contributions; the level of choice of funds available and the adequacy of provision of financial advice. It also highlights the need for people to be encouraged to start saving for retirement immediately and not put it off until the scheme is established in 2012, in order to avoid the risk of creating a generation of non-savers.
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The target group for personal accounts
Advice and meanstesting
Action before 2012
Delivering personal accounts
The potential impact of personal accounts on existing pension schemes
Accounts Delivery Authority administrative Age Concern Annual Management Charge annuity Anthony Thompson ask the Government auto-enrolment automatic enrolment beneﬁts branded funds burden on employers charging structures choice Committee Pension Reform consumer contribution rates costs decision default fund delivery model difﬁcult Doug Taylor earnings ensure exempt schemes ﬁgure ﬁnancial advice ﬁnancial services ﬁnancing ﬁrms ﬁrst Government response Government’s proposals group personal pension HMRC important income individual’s individuals NAPF NPSS occupational pension occupational schemes option organisations Paragraph PAYE Pension Credit pension provision Pension Reform Report pension schemes Pensions Commission Pensions Committee Pension Pensions Policy Institute people’s Personal Accounts Board Personal Accounts Delivery personal accounts scheme personal accounts system Public Bill Committee recommend Regulatory Impact Assessment retirement Richard Saunders risk Second Pension Second Report self-employed signiﬁcant speciﬁc stakeholder Stephen Haddrill suggested target market Virgin Money waiting period White Paper