OUR PROFESSION

CONSULTATION RESPONSES

 

 

Our Profession

Consultation Responses

Response from the Association of Independent Financial Advisers to the Pensions Bill

IFAs’ plea for the pensioners of the future

Published: January 7 2008 02:00 | Last updated: January 7 2008 02:00


From Mr Chris Cummings.

 

Sir, The pensions bill will be read for the second time in the House of Commons today. The bill proposes to enrol automatically most of the working population into a personal account from 2012, unless they are a member of an exempt pension scheme.

 

We generally support personal accounts but have concerns with some of the proposals in the bill. First, it is unacceptable that people who conscientiously save for their future could receive no benefit from being prudent. Because of means-testing, up to one in five future pensioners could effectively be worse off than those who opt out of personal accounts and choose to rely on state benefits.

 

Second, legislation should not create restrictions or impracticalities that impact adversely on existing pension schemes that provide contribution levels above the minimum required for personal accounts. We also believe that the lack of proper advice for employers and employees about personal accounts will further exacerbate this problem, as employees will rely on hearsay information from ill-informed sources or seek advice from employers who will be unable to provide it.

 

We urge Peter Hain, secretary of state, and his Conservative and Liberal Democrat shadows to examine these issues closely and seek practical solutions before pressing ahead with the pensions bill.

 

We are happy to provide them with our expertise and help them deliver a fair outcome for the next generation of pensioners.

 

Chris Cummings,
Director General,
Association of Independent Financial Advisers (AIFA)

 

MEMBERS LOGIN

remember me ?

Password reminder

Not a member?   JOIN AIFA

AIFA has three prestigious meeting rooms available to hire.