NEST comments on the annual Workplace Pensions Report by Scottish Widows just released.
Tim Jones, Chief Executive Officer, NEST, said: “It is encouraging that so few people are planning to opt out of their workplace scheme once enrolled. However, we also know that nearly nine in ten workers check every single payslip and will want to understand why it contains a new deduction. There is a risk some people will opt out when it may not be in their interests if this comes as a surprise. It is vital that people think about why tomorrow is worth saving for and what they could lose if they opt out. The messages they receive from employers and the industry about automatic enrolment must be clear, simple and constructive to help people make informed decisions that are right for them.’
Key facts about NEST: From October this year, the Government is introducing reforms that mean employers will have to enrol most of their workers into a workplace pension scheme that meets or exceeds certain standards. They’ll also need to make a minimum contribution for many of these workers. NEST is a national defined contribution workplace pension scheme available to all employers to use to meet their new duties. It is designed around the needs of people who are largely new to pension saving, with clear communications, low charges and easy online tools and services. It is run as a trust-based scheme, on a not-for-profit basis, and the trustee has a legal duty to act in its members’ interests.
NEST has a public service obligation to accept any employer (whatever their size) who wants to use the scheme to meet their duties, as a sole scheme or alongside other provision. Social media sites and NEST’s ‘Tomorrow is worth saving for’ campaign. NEST has launched a national campaign called ‘Tomorrow is worth saving for’. Via social media, it asks consumers, ‘what do you do now that you will still want to do when you’re older? Going to the cinema, socialising with friends, going to the football?’ and asks consumers to join a conversation to tell NEST what they think makes tomorrow worth saving for. The campaign is aimed at raising awareness of NEST and automatic enrolment. NEST wants to help consumers to put pensions in the context of their lives today and think about what difference a pension could make to their later lives.
