The Government's planned savings gateway for low-earners could lead to misbuying unless it is integrated with other savings products, according to pension experts.
They fear that unless the Government decides to link the gateway explicitly with products such as stakeholder, the new account is at risk of competing against the Government's other initiatives.
Plans for an account which will see the Government matching every pound saved by individuals before the assets are transferred into existing savings vehicles including stakeholder and Isas were unveiled in June.
The proposed savings gateway will be targeted at lower-income households, inevitably crossing over with the target audience for stakeholder.
Current consultation asks the industry what it believes the timescale for savers should be and what mechanism should be used to integrate the account into other products.
Some experts believe that if the gateway is not designed as a fully integrated sub-account which dovetails with existing savings vehicle, then advising the target market could be fraught with difficulties.
Also under consultation is the involvement of the financial services sector and whether there should be a variety of investment options to select from.
Clerical Medical pensions strategy manager Nigel Stammers says: “If it is implemented as a separate product, it will actually compete with stakeholder and other saving vehicles.”