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10-Oct-08 11:15 [Pensions]
ABI: Pension savers benefit from govt decision The Association of British Insurers (ABI) has told of its agreement with the decision of the government to not introduce a higher contribution cap in the first year of personal accounts.
It was noted that the Department for Work and Pensions would not allow a facility to add lump sum contributions and this would ensure the target market of low and moderate earners would continue to be addressed by personal schemes.
ABI director of life and savings Maggie Craig said it was good news that the government had decided to address the situation, adding that the move was a good thing for both current and potential savers in private schemes.
She continued: "Enabling a higher first year limit and the payment of lump sums into personal accounts, would potentially have damaged the existing pensions market and therefore hit the people who save in them."
Earlier this week, the ABI said that the healthcare industry was now starting to effectively combat fraud in the sector through the implementation of key measures.
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