PIMA welcomes plans to simplify state provision and the flexible savings approach outlined by the Commission as this could lead to greater levels of saving. PIMA also thinks the creation of a National Pensions Saving Scheme will help widen the provider pool.
However, it suggests that auto-enrolment might also be applied to the concept of a Workplace Isa or Savings and Retirement Account. PIMA has been in discussion with the Government and wider policymakers to develop the savings and retirement account. This wrapper could contain any FSA-authorised investment and would have the tax treatment of a pension with the functionality of an Isa
PIMA director general Tony Vine-Lott says: “We believe plans for auto-enrolment should also consider a Workplace Isa and our own detailed policy work on the development of the Savings and Retirement Account would fit perfectly into the plans for a National Savings Scheme.”