Gregg McClymont, shadow pensions minister, has called for restrictions on the National employment savings trust (Nest) to be culled, so it can effectively compete with its rival providers.
Addressing delegates at the Employee Benefits Pensions and Workplace Savings Summit 2012 at the Four Seasons hotel in Hampshire, McClymont said that government policy on auto-enrolment would fail if enough savers opted out of Nest because they considered it a low-quality option.
Current legislation prohibits transfers in and out of Nest and contributions of more than £4,200 per annum.†
McClymont cited these as the reasons why Nest cannot compete with providers such as People’s Pension and Now: Pensions. He said: “I do believe there’s a case to consider for moving the restrictions on Nest, so it has ability to compete in the market.
“Poor quality products are going to let the system down and tarnish the [pensions] industry as a whole.”
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