PPI investigates suitability of personal accounts
The Pensions Policy Institute (PPI) has this week published a paper investigating which members of the public will be best suited to having a personal account.
Under proposed plans for reform of the pensions system, employees will be automatically enrolled into personal accounts and have to opt out if they wish to do so.
Niki Cleal, PPI director, said: "The good news is that personal accounts could give access to low-cost pension with an employer contribution to many people for the first time when they are introduced in 2012."
She noted, however, that some individuals, specifically those that are self-employed for long periods of their working life and those who may be renting a home in retirement may not be suited to a personal account.
The PPI added that individuals that may be at risk of being unsuitable for the account should seek information to assist them in their decision to stay in or opt out of the system.
Earlier this month, Scottish Widows commented that many employers may "level down" their pensions contributions for new staff to the minimum permitted by personal accounts.
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