Thursday 3rd April 2008
Making Personal Accounts compulsory from 2012 onwards could benefit the economy in the long term, it has been suggested.
Head of press at the National Association of Pension Funds Mark Brooks notes that the London Olympics are expected to bring financial prosperity to the country in that year.
But he adds that "the impact of Personal Accounts will have a longer lasting effect on people".
This could centre in part on those working for companies which currently do not contribute towards their employees pensions, he contends.
Mr Brooks advises that the three per cent contribution expected of employers would not be the only impact.
"This is not just in terms of cost but also in setting up auto-enrolment systems," he explains.
All employers would be affected by the latter, he concludes, as it is new to all companies whether or not they have historically contributed towards their workers pension schemes.
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