Fidelity has criticised the Government for not considering where buyers for its proposed Sandler suite proposals will come from or providing any incentives.
While saying that supply side solutions do nothing to alter a lack of demand, Fidelity has welcomed the Government's endorsement of active fund management.
It suggests that the Sandler suite of safe haven products should be life styled – rather than a 60 per cent limit on equity content as proposed by the Government its suggests a sliding amount depending on the age of the saver.
Fidelity managing director Richard Wastcoat says: “The Government has concentrated too much on a prescription for the supply of these products and not enough on where the demand will come from. There is no mention of tax incentives to encourage low and middle-income earners to save more and no hint of how the Government would communicate with their target market to persuade them of the need to buy these products beyond their limited campaign on pensions.
“We applaud once again the Government's aspirations, but not their chosen route.”