06 November 2006
Consumers do not trust the financial services industry to run a
low-cost retirement savings scheme in their best interest,
according to consumer magazine Which?
Personal Accounts are set to be introduced in 2012 to encourage
employees to save for their retirement. Details of who will be
running the schemes are expected to form part of a White Paper
later this year.
Ahead of this decision, Which? surveyed the public on who they
would trust to run it. The poll of more than 500 people found the
public do not believe the private sector is the best place to
manage this savings scheme.
Only 10 per cent of those asked said they would most trust the
financial services industry to manage Personal Accounts in their
best interest. This is less than the government - supported by 17
per cent of respondents - and independently run financial
organisations, who gained 15 per cent support.
The survey also found that 85 per cent of consumers think it is
important or very important to be able to trust the organisation
charged with running their pensions scheme.
Which? personal finance campaigner Doug Taylor said: "As
financial services companies argue amongst themselves about who
could provide a Personal Accounts system offering the most
bewildering array of marketing materials or the biggest choice of
funds, Which? is calling for the consumer voice to be heard.
"Consumers want a fair framework for Personal Accounts that is
simple, low-cost and sustainable and which they can trust. Ceding
control to the financial services industry on this essential issue
would create a hostage to fortune. We have a once-in-a-generation
opportunity to create a pension system which consumers can have
confidence in.
"The industry could not be trusted to deliver on the
government's flagship stakeholder pensions policy a couple of years
ago and it can't be trusted now."
