Personal accounts are step towards future financial security

The Government’s latest White Paper on pensions, 'Personal accounts – a new way to save', is a constructive and necessary step towards extending private pension provision, says Stewart Ritchie, President of the Faculty of Actuaries.

“People are living longer and we all need to think about, and plan for, our future financial security. This paper is a constructive and necessary step towards achieving that outcome,” he said.

However, Mr Ritchie also said that concerns outlined by The Actuarial Profession in its its response to an earlier Government White Paper, Security in Retirement – towards a new pensions system, still need to be addressed.

He said: “We’re still concerned that the provision of advice for members and potential members of Personal Accounts hasn’t been addressed. For Personal Accounts to succeed it’s vital that information products are developed in the context of financial capability strategies. We look forward to working with the Government and the new delivery authority to get this right.”