Nest’s default investment fund will target long-term returns of CPI plus 3 per cent following the national scheme’s decision to adopt a low-risk investment strategy.
The Government-backed pension scheme also confirmed details of the additional fund choices available to members.
These will include a higher risk fund, a lower growth fund, an ethical fund, a Sharia fund and pre-retirement fund. The pre-retirement fund will be available for members who, in the early years of the scheme, want to buy retirement income with their pension pot rather than target a cash lump sum.
Nest chairman Lawrence Churchill says: “Agreeing the investment approach is a significant landmark for Nest in achieving our aim of helping millions to save confidently for their retirement.
“The investment strategy will develop over time and we’re confident our approach will encourage saving and support our members in achieving their aspirations for retirement.”