Abstract
Encouraging more people to make provision for their own retirement is a primary aim of the UK government. Reform after reform has centred on restoring consumer faith in the pensions industry and boosting take-up of pensions, albeit with varying degrees of success. Examples include the launch of stakeholder pensions in April 2001, and a new simplified pensions tax regime in April 2006.
Further monumental change is but a few years away, with the launch of a new national pension savings scheme (NPSS). The introduction of personal accounts in 2012 will dramatically alter the UK pensions landscape. While many feel it is a move in the right direction, there are numerous concerns and practicalities to work out. Pension companies question how the scheme can be administered effectively within proposed pricing limitations, while employers are anxious about the added cost burden.
This report will examine the arguments for and against the NPSS, and explore the issues surrounding it, by drawing on the expert views of pension providers, as well as the opinions of those who will likely be enrolled in the scheme. We investigate the reasons why more than half of the UK' s working population is not currently saving in a pension; and identify and profile the target market for personal accounts. We also assess the level of consumer support for the proposed scheme and the process of auto-enrolment.
Mintel asks:
- What are personal accounts?
- Why does the government want to introduce them?
- Who is the target audience for the NPSS?
- What do these people think of the scheme?
- What proportion of NPSS targets is likely to opt out of the scheme, and why?
- What do pension providers and employers think of the government' s proposals? What are the main bones of contention?
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