Scrap PADA and NEST now!

Instead, just make employer and employee contributions into a stakeholder plan compulsory, with an employee opt-out option.

Results

– a straightforward, understandable system where virtually all the infrastructure is already in place and cost – capped.

– no additional quangos needed.

– greater freedom of choice.

– option to inbuild the cost of investment advice

 

Why is this idea important?

This should be one of the first Quango's to be dumped. The true cost of running the new national pension scheme is twice as expensive as the Stakeholder Pension administration – which is already set up and running – so why do we need a whole new complex system with yet more admin layers, just to distribute a scheme which is twice as expensive as a stakeholder – and with no investment advice included in the costs.

This has got to be one of the worst thought through hairbrain schemes any government has come up with. Get rid of it now before it costs everyone in the country any more money. Simply make employer and employee stakeholder contributions compulsory and you get a better result all round but without this monumental cost.

No doubt someone at TATA will want remunerated for cancelling their contract – perhaps this should be paid by whoever authorised it in the first place!

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