View more on these topics

Nest transfer ban ‘benefits industry at expense of employees’

Baroness Drake says the ban on transfers into Nest will benefit the pensions industry at the expense of employees in the scheme.

Under the current rules, people who are auto-enrolled into a pension and go into Nest will not be able to move existing pots into the scheme.

Giving evidence to the Work and Pensions select committee today, Baroness Drake said this inability to move pots into Nest has come as a result of lobbying from the industry.

She said: “I have real concerns that some arrangements have been allowed as a result of responses to various representations that do not serve the employee well. One is the ban on transfers into Nest. I cannot see any gain for the employee on transfers into Nest. It cannot support the employee it can only support the industry.”

Baroness Drake was a member of the Turner Commission, which came up with proposals for auto-enrolment and for a national saving scheme which later became Nest.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com