NEST to be Scrapped

NEST to be Scrapped?

by Ashley Clark, Director

NEST - the National Employment Savings Trust - a new compulsory private pension where employees and employers will be forced to pay into a pension scheme due to start in 2012 may be scrapped and pushed back into the private sector.

In a report in industry newspaper, Money Marketing, it was suggested that the Government may look to save over 0.5bn by handing over all administration and management of such pension schemes to the private sector.

In short, a reversal of the Stakeholder Pension decision by ensuring that compulsory contribution pension schemes for all those who do not have an adeqate pension be offered and managed by the private sector.

What a waste of money – the easiest route to do this is to make it compulsory for all employers to offer a compulsory contributions pension scheme for all staff and use existing frameworks of Final Salary Pension Schemes (for those emlployers that can afford it), Occupational Money Purchase Plans, Grouped Personal Pension Plans and Grouped Stakeholder Pension Schemes.

The framework is in place already, why waste more money – simply make it the law without the need for a brand new scheme.

Useful links:

Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts

Back to News Summary