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13 Jan 2016

NEST bracing itself for wave of workplace pensions

The National Employment Savings Trust (NEST) is said to be ready and prepared for an expected deluge of new pension savers as small businesses throughout the UK are signed up to provide workplace pensions, the Financial Times reports.

Speaking to the publication, NEST chief executive Helen Dean noted the “big challenge” the organisation now faced, but stressed, “I don´t believe we are going to buckle.”

A government initiative to drive pension saving will see a rapidly growing number of workplace pensions appear this year. NEST has secured 2.6 million of the 5.5 million individuals whose employers have signed them up to an automatic enrolment scheme. This figure is now likely to rise to 3.5 million over the coming weeks and months.

As of January 2016, millions of small- and medium-sized businesses will be affected by auto-enrolment, from cleaners to nannies.

Despite this, however, research conducted by the Federation of Small Businesses suggests that nearly half the small employers in Britain remain unclear about how to meet their new obligations, as well as when the deadlines are and what the costs will be.

Furthermore, the Pensions Regulator recently expressed its concern that some small employers were leaving it too late to comply with the legislation.

Commenting on the preparations of not-for-profit pensions provider NEST, Dean confessed that they are unsure exactly how much new business they were going to capture, but stated that it was allowing capacity for “up to 3.5 million members” in the first few months of the year.

The provider´s aim has been to ensure that it is “resilient against fairly extreme scenarios,” she added.

Copyright M2 Bespoke 2016

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