Jupiter Asset Management has welcomed the announcement in today's White Paper that the government is to adopt the Turner Commission's proposal for a centrally administered system of personal accounts.

Edward Bonham Carter, joint Chief Executive of Jupiter, commented: "It is clear that people are not saving enough for their retirement and we are pleased the government's White Paper takes on board the investment industry's views on how to tackle this. Although the proposals are not without issues, they represent a potentially workable solution in which low cost administration provided by the public sector can be combined effectively with genuine private sector competition at the fund choice level."

Bonham Carter added: "As these proposals are developed, we hope that recognition will be given to the value of high quality fund provision as opposed to the current focus on cost as opposed to value.  Charging fees of 0.5% or less may seem sensible but will actually limit saver's choices by keeping some of the best fund managers and providers out of this market".

Jupiter is concerned that there is little or no room for advice in this product.  "People's financial circumstances differ considerably and many are worried about making poor or inappropriate investment decisions" said Bonham Carter. "It is important that NPSS savers see these savings as their own provision for retirement and are encouraged to actively engage in the decision making process as the investment choices they make will affect the quality of their lives in retirement. Many people may feel they need help with these decisions."