Scottish Life has linked with Nest for its automatic enrolment pension offering.
The tie-up will allow employers to use a Scottish Life pension scheme or Nest, or a combination of the two, to meet their auto-enrolment duties.
Nest managing director of scheme development Helen Dean says: “Employers have told us that they intend to use Nest in a wide variety of ways to help meet their duties under automatic enrolment. In many cases, that will involve a partnership with another provider and we look forward to working closely with Scottish Life to deliver solutions for employers and their workers.”
Scottish Life managing director Ewan Smith says: “We know that many employers will want a one-provider solution to meet their employer duties but there are circumstances where this will not be practical.
“Our partnership with Nest will enable us to provide specific product solutions to clients who require different schemes for different groups of staff.”
Earlier this year, Scottish Widows linked with B&CE, a low-cost rival of Nest to allow employers to offer a two-tier pension solution targeting different segments of their workforce.
Radcliffe & Newlands chartered financial planner Mel Kenny says: “By linking with Nest, Scottish Life can get its foot in the door with more employers. The employer may just go for Nest at first but when they are ready for an upgrade, they will inevitably choose Scottish Life.”