Fears raised over personal accounts
The personal account system that is to be introduced to encourage British workers to invest in a workplace pension could lead to a levelling-down of the amounts private companies invest in such schemes, it has been claimed.
A study by Scottish Life recently found that most people in the UK believe that if the government requires employers to contribute a certain amount to an individual's personal account, then this minimum level will become the norm.
In fact, only 13 per cent of respondents to the Scottish Life study disagreed with the idea that the personal accounts system will result in a leveling-down of employer contributions to workplace pensions.
Steve Bee, from Scottish Life, said: "Many of those who responded to the survey seemingly felt that the answer was a 'no-brainer', but the poll did reveal a certain level of optimism that advisers themselves could be key to stopping the dumbing-down of our pension system.
"It's clearly not a black-and-white issue and whether or not levelling-down happens as a result of these reforms may depend, at least in part, on how employers and their advisers react to events."
Last week, Peter Hain, secretary of state for work pensions, claimed that the government's latest reforms of the UK's system of saving for retirement would be the most significant in decades.
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