Personal account pensions will encourage millions of people to save for the future – but there are pitfalls.
Des Hamilton, technical director for the Pensions Advisory Service (TPAS), broadly welcomed the scheme but said that it was important that people received proper advice.
He said: "[People] will need very good information that highlights the issue of means tested benefits".
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Hamilton said that one of the big problems of the scheme may be that members end up no better off than if they had opted for the state scheme.
The new scheme is aimed at the seven million Britons who are not saving for their retirement.
Government research indicates that private pension saving is lowest among workers on a moderate to low income.
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And concerns about a looming pensions crisis are compounded by an aging population.
The charity Age Concern says that the number of people in of pensionable age is set to increase to 15.3 million by 2026.
Date: 14th, January, 2008
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