Pension providers have rubbished a report by Deutsche Bank claiming stakeholder will double the UK's pensions market in the next ten years as “far too optimistic”.
Providers say assumptions of stakeholder take-up made by the report are way over the top even exceeding Government hopes.
Deutsche Bank bases its estimates for the growth of the pensions market on an assumption that 60 per cent of the Government's target group of five million unpensioned people will take out a stakeholder plan.
Providers say the US experience with 401(k) pensions underpins their scepticism where there is 60 per cent staff take-up among companies offering plans but where 90 per cent of companies don't offer the plans.
Scottish Equitable pensions development manager Steven Cameron says: “The report makes the assumption that 60 per cent of the target market will sign up.
“I personally don't think the take up will be anything like that. Even the Government doesn't expect it to be. Its target is 50 per cent in five years, but now smaller companies have been excluded from stakeholder I doubt if it will even make that.”
Scottish Life marketing manager Alasdair Buchanan says: “The report is too simplistic. I think it may have been unfortunate in terms of timing coming after the Government's key stakeholder decisions.”