Danish public pension provider ATP will challenge Nest this year with the UK launch of a product targeting low to middle income earners, this week’s Money Marketing reveals.
ATP head of international operations Morten Nilsson says the firm has consulted with former Conservative Shadow pensions minister Nigel Waterson ahead of the launch.
He refused to confirm whether Waterson will take a permanent role at the firm.
Nilsson says: “We have been looking at the UK with more and more interest, because there is a need for simple, cost-efficient pension products that perform. Not many companies are in that space in the UK offering good pension products to people with regular or low incomes. We are hoping to be ready to launch something by the end of this year.”
ATP was a bidder for the Nest administration contract which was handed to Tata Consultancy Services. Nilsson says ATP pulled out of the deal because “the commercials were not right”.
ATP’s decision to launch a product in the UK follows a report by Hermes Focus Asset Management chairman David Pitt-Watson calling for a limited number of private sector pension providers to become “approved default providers” like Nest.
He used Holland and Denmark as examples of countries which have successfully delivered low-cost collective pension provision.