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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 the Government, has publicly said its transfer ban and £4,400 annual contribution cap should be scrapped before a planned review in 2017.

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.”

Last week, Money Marketing revealed the Association of British Insurers has softened its stance towards the idea of removing Nest’s restrictions early.

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.”

Worldwide Finanical Planning IFA Nick McBreen says: “The restrictions risk deterring a significant proportion of SMEs from using Nest, even if it is the most appropriate scheme. The sooner they can be lifted the better.”

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