View more on these topics

Nest urges Govt to scrap restrictions in 2014

Tim Jones Profile 480 Index

Nest has called on the Government to lift the scheme’s restrictions in 2014.

It is the first time Nest, which is funded by a loan from Government, has publicly called for its transfer ban and £4,400 annual contribution cap to be scrapped before a planned review in 2017.

Nest says the restrictions need to be removed to cut complexity for employers who want to use a single scheme for automatic enrolment and to give members the freedom to increase contributions or consolidate their pension savings.

Nest chief executive Tim Jones says: “Nest and the pensions industry as a whole needs to pull out all the stops to make a success of automatic enrolment as the volume of employers being staged rises exponentially in 2014.

“Nest’s restrictions complicate the decision-making process of medium-sized employers, many of whom will experience a private pensions sector already busy supporting other clients and who will therefore look to Nest as a potential provider. Removing the restrictions will help us help those employers to get the job done.”

Nest argues the restrictions can be lifted without damaging private sector providers because of the “unique elements” of the scheme’s framework, such as its public service obligation, fixed price and inability to offer any products beyond an automatic enrolment pension scheme.

This follows news that the Association of British Insurers has softened its stance towards the idea of removing Nest’s restrictions early.

Speaking to Money Marketing, ABI director of life, savings and protection Stephen Gay said: “The industry is not standing in the way of pensions reform and we want savers to get good outcomes, so if it is the case the restrictions are preventing that then they should be removed before the 2017 review.

“If people are not getting access to good schemes as a result of those restrictions or those restrictions are standing in the way of pensions reform, such as a pot follows member automatic transfer system, they should be removed.”


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. “Nest, which is funded by a loan from Government”.

    Ah,ah. “Loan” from the taxpayer.

  2. Making it up as they go along – yet AGAIN.

  3. Problem is that they keep changing policy so frequently that the industry and the population don’t trust them.

  4. Trouble is, we all know exactly where this hugely expensive white elephant will end up.

Leave a comment


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