Managers sceptical on personal accounts

Nearly two-thirds of pension managers believe personal accounts will not go ahead in their current form.

An exclusive survey by Professional Pensions showed that 61% of scheme managers said it was unlikely the 2012 reforms to create a personal accounts system would go ahead in their current form.

Some 23% said they would go ahead as they were and 16% were unsure. However, even some of those scheme managers who believed personal accounts would go ahead in their current form were not convinced they would be a success.

One manager said: "I am highly sceptical about how successful this will prove to be. Isn't this just another Stakeholder flop waiting to happen ?"

This comes after pensions minister Angela Eagle admitted political consensus around personal accounts was losing cohesion.

Responding to calls from the Conservatives to halt signing personal accounts contracts until after the next general election she said "it seems to me, then, that the consensus is ending".

Tory pensions spokesman Nigel Waterson raised his concerns over the "four year delay in implementation" announced earlier in October.

He told parliament: "Does the minister accept that it would be sensible for any new government to hold a review of personal accounts, especially in the light of the four-year delay in implementation that she recently announced?"

This also comes after two firms - Logica UK and Danish pension fund and administration provider ATP Group - pulled out of the running for the personal accounts administration contract.