Legal & General boss Tim Breedon has called on the government to give the insurance industry more leeway to administer the new national pensions scheme.
Breedon said insurance companies would not be able to meet Lord Turner’s challenge of running a National Pensions Savings Scheme (NPSS) on the very low level of charges put forward in his report last year.
The new Legal & General chief executive said that Turner’s proposal for a charge of just 0.3% would prove too low.
“I don’t think anybody can [run the national scheme for 0.3%]. The 0.3% has to include the costs of advice and administration – I don’t think so,” he said.
He added that he was looking forward to the Association of British Insurers’ response to the government’s proposals.
Lord Turner’s proposals are expected to be one of the key features of the government’s White Paper on pensions, published in the spring.