The Association of British Insurers yesterday announced that reducing Britain's £27bn annual savings gap should be a top government priority.
Commenting on yesterday's announcements on the Sandler suite of products, Mary Francis, director-general of the ABI, says: “This decision is a step in the right direction. The government has recognised that the 1% price cap on stakeholder pensions was hindering saving, not helping it.
“But the new price cap is certainly not generous, and the test of today's announcements will be whether they lead to a real increase in the overall level of saving.”
Francis adds: “The savings industry backed Ron Sandler's proposals for simpler savings products from the start. But we pointed out that a 1% charge is simply not enough to enable firms to make a viable return on sales to customers with relatively modest incomes.
“But more also needs to be done in other areas, for example through the government's Informed Choice programme, to encourage additional savings and help everyone make sensible provision for their retirement.”