NEST to charge 2% on contributions

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 ...