The Personal Accounts Delivery Authority has revealed the personal account pension scheme is to be rebranded the National Employment Savings Trust.
The working title of personal accounts will be replaced by Nest as the consumer brand for the pension saving scheme aiming at low to moderate earners. Pada says the cost of the rebranding exercise, including the research undertaken to come up with the name is £363,000.
Nest will be run by the Nest Corporation, a not-for-profit trustee corporation, and will have its own website.
Acting Pada chair Jeannie Drake says: “The reforms to UK workplace pensions, including Nest, represent a consensus settlement reached across industry, political parties and interest groups. We all have one goal in mind – to make saving for retirement become the norm and to put an end to poverty in old age.”
Pensions minister Angela Eagle says: “This Government’s radical reforms to the pension system will ensure millions of workers on low and moderate incomes are able to save for their retirement in a workplace pension with a new guaranteed minimum contribution from their employer. Nest will play a key role in this and help transform attitudes to saving.”
The Association of British Insurers welcomes the new name but urges Pada to launch a national marketing campaign to raise awareness as soon as possible.
Acting director general Maggie Craig says: “We are pleased the new name has been announced and hope it will strike a chord with the low-paid employees it is targeted at. This new branding must now be a springboard for action. We have for some time stressed the need for an extensive national communications campaign to increase awareness and understanding of pension saving. There is little time to lose before the scheme is due to start in 2012.”
Towers Watson is sceptical about the impact of the new branding, given the pre-Budget report announcement that the full rollout of personal accounts is to be delayed until 2017. Senior consultant Paul Macro says: “It would be easier to build a nest if the Government did not keep shaking the tree. It is easier to come up with a nice name than to reassure people that their financial eggs will be safe in this nest.”