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‘Set aside politics to give NPSS 20 years’

The pension debate needs to be depoliticised if Lord Tuner’s NPSS is to survive long enough to improve pension saving, warned ABI director general Stephen Haddrill.

Speaking during a panel debate at the IEA conference, Haddrill said if the NPSS is to last 20 years, party politics must be set aside and the policy backed by consensus.

Legal & General pensions strategy director Adrian Boulding said it is likely to take 20 years for the NPSS to reach break-even and he questioned the likelihood of this happening .

Impact Plus director (insurance & investments) Ian Ackerley said the average duration for a pension policy is seven to eight years. As a result, it is unlikely that NPSS will last long enough to pull itself out of its long period of deficit.

Consensus that the NPSS will remain in the red for 20 years is based on Lord Turner’s assumptions that set-up costs will weigh in at 90 a head, with 25 admin costs per person a year and 0.3 per cent annual charges for savers.

Haddrill said: “We have to depoliticise the pension debate. Quite simply, whatever version of NPSS we end up with, it has to last for at least 20 years.”

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