Make it gold for pensions in 2012

As John Hutton, Secretary of State for Work and Pensions, announces his response to consultations on Personal Accounts – the new government pension scheme for 2012, Peter Vicary -Smith, Chief Executive, Which?, says: “Today’s announcement gives the green light to a pension scheme which will finally centre on the needs of the consumer.

“Although the proposed £3,600 contribution cap is not as high as we pushed for, the fact that it is index linked will benefit savers in the future.

“The crucial next step is for the Delivery Authority assigned to run Personal Accounts to ensure that, in practice, the scheme works for the 7 million people it has been designed for. By keeping consumer representation at the top of the agenda, Personal Accounts can be at gold medal standard in 2012.”