The problems posed by the National Pensions Saving Scheme

The current proposals for the National Pensions Saving Scheme have brought up a number of problems, not least the risk that employers may downgrade their current provision to save money

The year 2012 promises to be a busy year - the Olympics in London and a new national pension scheme. Well, if the fiscal situation allows the pension scheme, and if the pension scheme or the Games come in on budget. In December 2006 the Government issued a White Paper on the design and operation of the new National Pension Savings Scheme (NPSS) or personal accounts, as they prefer to call them. I am sure a lot will be written over the next few years on this subject and due to space constraints I will only be able to look at some of the key issues. The rationale for the scheme is good - a...