The Association of British Insurers (ABI) has said that the UK government has praised its 'partnership pensions' model for building on existing savings infrastructure.
During a meeting with the government’s minister for pensions reform, the ABI said it was able to pass along a number of its concerns, principally its hesitancy to provide detailed information about the costs of running the scheme.
As the ABI’s director general Stephen Haddrill said, You can’t just say, it’s this cost in Sweden, it will be the same in the UK, because there’s something different about each of these different systems. In Sweden, for instance, contributions will be compulsory.
He went on to say, So what we’re proposing, and I think there was some recognition of this, was that we should get it going. We should have an aspiration for what the costs should be, but we should have some kind of oversight, some kind of economic regulation to make sure that the actual costs of the charge to customers are fair over the long term. So I think we’ve got that point over as well.