Call for evidence: NEST evolving for the future
08 July 2016
As part of Automatic enrolment in workplace pensions, the Department for Work and Pensions (DWP) has launched a call for evidence on NEST, the government-backed provider of workplace pensions, and their future.
The consultation will consider whether the NEST remit needs to better reflect recent changes to the pensions landscape, including the introduction of the pension freedoms and the new State Pension, to meet the needs of its 3 million members. This may include providing new ways for members to access their pension savings and expanding the scheme to enable individuals, employers and other schemes to access NEST’s services.
With the introduction of automatic enrolment, there has been a move towards mass-market defined contribution pensions, and the government has made changes to how people can access their pension savings.
Attitudes towards retirement are changing – rather than a sudden event, people are beginning to view retirement as a period of transition. This means that new options are needed to adapt and appeal to meet consumers’ needs.
In undertaking this call for evidence, the government recognises the unique status of NEST in the pensions market, and that its core business will remain serving those workers and employers that are in its target market. To inform the debate, DWP has developed a series of principles to consider in weighing up proposals for change to NEST’s policy framework:
- Inclusiveness – focus on the benefits to NEST’s target market – low to moderate earners , regardless of their total pension wealth
- Consumer focused – ensure employers and consumers have choice and control, and that NEST is able to meet the needs and aspirations of its members
- Value for money – NEST remains a viable, low-cost, well run scheme that is stable over the long term
- Sustainability – enable NEST to keep pace with the rest of industry, offering members comprehensive retirement saving solutions that helps to lock in confidence to the broader pension system.
The call for evidence NEST: evolving for the future will run for 12 weeks (closes at 5pm on 28 September 2016).