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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.


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 […]

Leading Edge June – Investment panel debate

RLAM’s asset class specialists discuss some of the findings from the panel session at our recent Investment Conference. By Rob Williams, Head of Distribution Welcome to the latest edition of Leading Edge. It has been an eventful six months since the last e-zine. The European Central Bank announced ongoing stimulus measures, while the immigration crisis in Europe threw the […]


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