Ian McKenna has fundamentally misunderstood both the 2012 pension reforms and the ABI’s position on auto-enrolment. First, Nest and auto-enrolment are not the same – the radical reform for 2012 is auto-enrolment, of which Nest is a part.
Ian appears to be rather confused by whether he means the industry cannot auto-enrol – of course it can and we want it to start as soon as possible – and whether the industry should run Nest.
Nest was proposed to fill a gap in the market by help-ing lower-income savers get started with a pension and reaching customers that the industry has not targeted in the past as it has not been commercially viable.
The ABI has suggested redefining the scope of auto-enrolment to ensure it pays to save as part of the Nest review. If the review team decides to change the scope of auto-enrolment, there may be a bigger role for the industry to play under these new parameters, which will be for individual companies to decide.
Director of life and savings, Association of British Insurers