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Personal Accounts to become pension benchmark

25 July 2009 / by Rebecca Sargent

Personal Accounts, a workplace pension scheme to be launched in 2012, will become the industry benchmark says Legal & General Investment Management.

The Personal Accounts scheme has been developed in response to the Government's Pensions Act 2008, which requires reform for workplace pensions by 2012.

It released its latest consultation paper recently, which, according to Legal & General, "offers a level of insight unparalleled in terms of quality and depth."

Personal Accounts intend to make pension savings easier for both employers and employees, by requiring a certain level of contributions and through auto-enrolment.

According to Ian Richards, head of defined contribution strategy at Legal & General Investment Management, the work that has gone into Personal Accounts is revolutionary:

"Through the extensive research which has been commissioned, an extensive base of knowledge has now been amassed and is there for the taking," he said.

In fact, Mr Richards goes on to say that whether they are launched or not, Personal Accounts have already made an important contribution to the pension industry. 

Mr Richards adds: "The preparatory work currently being undertaken for the launch of Personal Accounts has already started to have a beneficial impact on the defined contributions market, and I believe it will continue to do so right up to their launch in 2012."

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