NEST to charge 2% on contributions

Jenna Towler
clock

The National Employment Savings Trust (NEST) will charge 2% on all contributions, the Government has confirmed.

It says NEST will meet the Pension Commission's ambition for a low cost scheme with an anticipated 0.3% annual management charge over the longer term. However, to meet the costs of establishing the scheme, the initial level of charges will also include a small additional charge on contributions of about 2%. It said it was "comparable to low charges currently being paid by members of large occupational schemes". The department for work and pensions said until NEST is fully established, it faces an "inevitable gap between costs and revenues". The government announced that it will ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

'Understandable' people are pensions dashboard 'sceptics'

'Understandable' people are pensions dashboard 'sceptics'

Industry experts say there will always be a role for dashboards

Holly Roach
clock 03 May 2024 • 1 min read
Big difference: Ways to tackle the growing pensions gender gap

Big difference: Ways to tackle the growing pensions gender gap

'Of course, for single women, the pension gender gap absolutely matters'

Lisa Webster
clock 03 May 2024 • 3 min read
Boring Money and Wealth Wizards link to plug advice gap

Boring Money and Wealth Wizards link to plug advice gap

Strategic partnership to improve access to financial advice

Jenna Brown
clock 01 May 2024 • 2 min read