View more on these topics

Centralised NPSS model carries considerable risks, says Axa

Axa is broadly supportive of the intentions behind the proposals outlined in today’s Pensions White Paper but says a centralised model carries considerable risks.

It says is clear the introduction of personal accounts will introduce a whole new group of employees to the long term savings habit.

These individuals, says Axa, will need guidance in making the right decisions, not just about whether to join the new scheme but also on what to do as their circumstances change.
But it says the decision to follow a centralised administration model means that the Delivery Authority will face a number of considerable challenges.

These challenges include: ensuring that consumers properly understand the decisions that they make; delivering value for money whilst ensuring that communication is clear, understood, and leads to benefits being valued by those who join; determining who pays the costs of setting up and running the scheme e.g. individuals in the scheme, employers or the taxpayer;
how will scheme members and employers be encouraged to do more than the bare minimum; balancing the requirements of this mass market solution with the need to maintain and cultivate existing good quality schemes.

Axa says it believes focussing on cost alone will not drive the right outcomes and therefore the terms of reference and the powers vested in the Delivery Authority will be crucial in determining the success of this initiative.

Recommended

Call to build more homes to aid FTBs

Former director general of the Confederation of British Industry Sir Digby Jones has called on the Government to do more to help first-time buyers.Speaking at the Council of Mortgage Lenders’ annual conference in London last week, he urged Westminster to reform the stamp duty regime and to build more homes.Last week’s pre-Budget report only saw […]

Kenny leaves ABI

ABI director of life and pensions Chris Kenny is to leave the trade body at Christmas after three years with the organisation.ABI deputy director-general Stephen Sklaroff will take on Kenny’s life and pensions responsibilities with some of his responsibilities reshuffled.The ABI says that after the publication of the Government’s White Paper on personal accounts Kenny […]

ABI says Consumers lose out through claims firms

Consumers get a better deal complaining direct rather than using claims management companies, according to research from the ABI.The FSA produced data yesterday showing the industry has now paid out £2.7bn in redress to over 1.8 million customers.The ABI says data shows individual complaining through a CMC typically receive around £1,400 once CMCs received their […]

Dividend slump? Not if you look globally

By George Boyd-Bowman, Manager of the Neptune Global Income Fund Recent research has indicated that global dividend growth will slump by as much as 50 per cent in 2016. As collapsing commodities hit high-profile dividend payers, George Boyd-Bowman explains why the US and Japan are his top picks for income growth in 2016. Click here […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com