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Which? accuses ABI of pushing public towards private pensions

Which? has criticised the ABI’s Save More Now campaign and urges people to explore options other than private pension saving.

It accuses the ABI of pushing consumers towards industry-run private pensions in the interests of its members.

The ABI is urging consumers not to rely on proposed Government reforms of the national pension savings scheme.

But Which? argues that consumers may be locked into a private pension and may be unable to benefit from a consumer-focused NPSS in 2012.

Although Which? concedes that consumers should be looking at how they fund their retirement, it suggests alternatives such as Isas as a form of saving.

Which? says safeguarding RU64 is essential to future retirement provision but the ABI disagrees.

ABI director of life and pensions Chris Kenny says: “It would be ironic and tragic if growing interest in future pension reform led to a decline in saving for pensions today. We will be working towards forging a genuine and lasting consensus on the need to save more now.”

Which? chief executive Peter Vicary-Smith says: “The ABI’s campaign to mobilise people to save more should not simply be a call for consumers to invest in just any existing pension product. With the NPSS on the horizon, consumers should not assume that it is the best thing to join a private pension.

“They should be saving in schemes that are appropriate for their needs and not necessarily those that the industry would like to sell them. Pushing headlong into a private pension now may be something that consumers live to regret.”

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