NOW: Pensions has revealed details of its charging structure as it prepares to rival Nest ahead of automatic enrolment.
The multi-employer trust-based defined-contribution scheme, which is backed by Danish pension scheme ATP, will charge members £1.50 per month for administration plus a 0.3 per cent annual investment management charge.
The pension scheme will operate a single investment strategy which it says “performs and protects”. The strategy will be based on a managed diversified growth fund, a retirement protection fund and a cash protection fund.
NOW: Pensions chief executive Morten Nilsson (pictured) says: “We believe auto-enrolment is a wake up call to the UK pensions industry, and ATP’s experience in servicing virtually the entire Danish working population and proven track record shows there is another way.
“We have been providing Denmark’s working population with stable, consistent returns over the past 45 years, no matter how volatile the economic climate, and we are confident we can do it here.”
The Government-back Nest pension scheme will levy a 1.8 per cent charge on member contributions in addition to a 0.3 per cent AMC.