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‘Govt should back advice’

Aegon says Government-subsidised advice should play a key role in the personal accounts savings scheme.

The firm’s response to the Pensions White Paper closely resembles the ABI submission, and says the Government should provide subsidies for generic advice at key decision points.

The generic advice would focus on basic affordability, debt management, affect on with means-tested benefits, nature of investment risk and investment choice if offered and adequacy of contributions for retirement aspirations.

Aegon says the introduction of personal accounts must avoid “unintended collateral damage” to existing pensions provision and the threat of levelling down.

It says employers should be encouraged to retain and extend good schemes and go beyond minimum contribution levels. This could take the form of Government-subsidised support to help employers understand and comply with their new obligations. Aegon calls for a joint Government and industry campaign to promote the benefits of pension saving before a personal accounts scheme is introducedHead of corporate affairs Francis McGee says: “Personal accounts are just one piece of the jigsaw and the Government must not lose sight of the bigger picture.”

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