Early NEST users face a 'raw deal'

Older workers, who are unlikely to use the NEST for long before retiring, stand to lose the most from the scheme. The charging structure for NEST, confirmed by the Government yesterday, will feature a 0.3% annual management charge (AMC) and a 2% contribution charge. While the contribution charge is meant to be temporary to cover the setting up costs of the scheme, the Government has given no details of when it will be phased out. Paul Macro, a senior consultant at Towers Watson, says: "In the long term, NEST should be cheaper than the pensions that individuals could arrange for the...