NEST Pensions (National Employment Savings Trust)

In December 2006 the Government published a White Paper outlining its workplace pension reforms, including proposals for NEST (National Employment Savings Trust). This led to the Workplace Pension Reforms set out in the Pensions Act 2008. These reforms aim to increase individuals' savings for retirement.

A new simple low-cost pension scheme, NEST will be introduced in October 2012 as part of the workplace pension reforms and will have the following key features:

NEST will be a trust-based defined contribution occupational pension scheme. It will be regulated in the same way as existing trust-based defined contribution schemes.

NEST will provide people with access to a simple, low-cost pension scheme. The charges are expected to be 1.8% on the value of each contribution to cover set up costs and and annual management charge of 0.3% of the fund

Workers will be automatically enrolled in the default fund but there is likely to be a choice of investment funds, which may include options such as social, environmental and ethical funds

Anyone who joins NEST will be able to continue to save in the scheme even after they leave the workplace or move to an employer that does not use NEST

The self-employed and single person directors are not eligible for auto-enrolment but will be able to join NEST

Employers will need to automatically enrol their eligible workers into a qualifying pension scheme and make contributions to it. Workers will be able to opt-out of their employer's scheme if they choose not to participate.

Workers who give notice during the formal opt-out period will be put back in the position they would have been in if they had not become members in the first place, which may include a refund of any contributions taken following automatic enrolment.

Transfers in and out of NEST are not allowed (except in specific limited circumstances).

There will be an annual contribution limit of £3,600 (in 2005 earnings' terms) into NEST. This will be uprated be earnings year on year. This limit will be reviewed in 2017.

Download our comprehensive pension options guide by clicking on the above image.

Financial Advisers

Jonathan Walker
Jonathan is the director and joint owner of the Pension Drawdown Company.

Robert Bolton
Robert is a practising Barrister and is also fully qualified as a Diplomaed Financial Adviser.

Bob Diamond
Bob is a Pension Specialist who has been with the company since its incorporation in 1996. Bob has been a financial adviser since 1989.

Andrew Ross
Andrew is a diplomaed financial adviser with a history in banking.

Roger Easterbrook
Roger is a diplomaed financial adviser with a background in Executive Search.

Click here for more team members.

Market Monitor

Updated: 14th May 2012

Heavy selling following the elections in Europe and banking woes in Spain resulted in markets ending the week lower. Weekend elections in Greece and France set a volatile tone and reminded investors that politics really matter in financial markets; political wrangling in Athens to form a government resulted in threats to unravel the country's bailout deal and raised the prospect of Greece exiting the euro area.

Global stocks had their longest losing period in six months during the week and the euro its worse run of daily reverses since 2008.

However, Thursday marked a turning point as investors cautiously returned to markets and risk assets showed resilience following $2bn trading losses at JPMorgan Chase (which also occurred on Thursday). In addition, the Michigan survey of US consumer confidence, which rose to a four-year high in May, also helped to provide support and end the week on a more upbeat note.

The increasingly gloomy outlook for the global economy sent commodity prices to their second week of losses, and gold retreated to four month lows. Weakness in the global economy drove demand for safe-haven government bonds, which pushed German bunds and UK gilts to record lows, while peripheral eurozone debt came under heavy selling pressure.

Important information: This update is intended to be for information purposes only.

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