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.