B&CE is lobbying the Department for Work and Pensions to widen the scope of auto-enrolment following the introduction of personal accounts in 2012 to ensure a level playing field for existing workplace schemes.
The not-for-profit company, which runs the UK’s biggest stakeholder scheme, is also in talks with the Association of British Insurers to co-ordinate an industrywide push for wider auto-enrolment.
B&CE deputy chief executive John Jory says he believes group personal pensions and stakeholder schemes have a far bigger role to play in the pension market while personal accounts will act as a safety net for people not already in an employer scheme.
He says he is confident B&CE’s scheme is not threatened by the introduction of personal accounts in 2012 because it offers a personal service but wants the auto-enrolment rules changed to ensure it can compete on a like-for-like basis.
Jory says: “The Government could have done more to help existing employer-sponsored schemes that are working rather than just introducing a completely new scheme.
“It is a big unknown as to whether personal accounts will work. I have concerns that many people will opt out because they are disillusioned by pensions and think that there is no point in saving for retirement.”