NEST calls for pre-set retirement options to protect savers
03 November 2017
NEST, the National Employment Savings Trust has responded to the Work and Pensions Select Committee’s inquiry on pension freedoms, providing evidence that advice and guidance alone will not meet the needs of millions of savers approaching and entering retirement.
NEST’s evidence calls for a simple solution: pre-set retirement options that meet high minimum standards of governance. These would extend Trustee oversight for members who don’t opt out, helping them get the most out of their pension savings for the rest of their lives.
The scheme is concerned that without these options in place, their members face multiple risks including paying too much tax, being scammed, paying higher costs or spending too little or too much in their retirement.
NEST, with over 5 million members and thousands of retirees, also found that most of their members either haven’t thought about what they’ll do when they get to retirement, or simply expect NEST to pay them an income at that point.
NEST say this highlights a disconnect between savers’ expectations and the reality of having to make ongoing, complicated decisions throughout retirement with little support.
Read the full press release from NEST.