ABI sets five tests for the success of personal accounts

The ABI (Association of British Insurers) has set five tests which must be passed by the proposed new system of pensions Personal Accounts. Those five tests are:

Will Personal Accounts produce more savers?
Will Personal Accounts produce more saving?
Will firms compete in the market or for the market?
Will the Delivery Authority deliver?
Will we avert planning blight?

Speaking at the ABI’s annual Saver Summit, Keith Satchell, the ABI’s Chairman, said: “Whatever route the Government chooses, Personal Accounts must pass a number of tests if they are to operate effectively, while at the same time ensuring that the existing private pensions market can grow and prosper. The boundaries between Personal Accounts, the benefits system and the existing market must be clearly defined. If our five tests are passed, we’ll be well on the way to achieving our joint goal of more savers, saving more for their retirement.”