NPSS 'irrelevance' for graduates
The government's national pension savings scheme (NPSS) has been described as a "complete irrelevance" for graduates, who would be better off investigating other methods of saving for retirement.
Tom McPhail, head of pensions research at Hargreaves Lansdown, has said that the role of the NPSS is to appeal to those who would not have otherwise joined a pension scheme.
He remarked that it was uncertain if the scheme would in fact commence and that the initiative had enough difficulties already without the added considerations regarding graduates saving for their retirement.
"The NPSS is not designed for graduates," he said.
"They should instead explore the private pension arrangement their employer offers. If their employer does not offer a pension they should make it their business to find a pension of their own such as a self invested personal pension (SIPP)," he added.
Independent consultants Oxera Consulting recently investigated a number of models for the delivery of personal accounts that will be introduced under the NPSS, concluding that there was little difference in costs between the proposed methods.
For information on providers of SIPPs to save for retirement, please click on our free brochures page.
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