NEST will bring pension provider charges down, says L&G

NEST's charges are set at 1.8% for the initial charge on entering the scheme, and a 0.3% annual management charge (AMC). Tony Filbin, director of workplace savings at L&G, said: "NEST creates a charge benchmark, so private corporate providers will bring their charges down." Charges on pension funds have been a particular focus of the public since October last year, when a BBC Panorama investigation claimed 80% of contributions are eaten up by management fees. However, Filbin said auto-enrolment, due to start in October 2012, will not drag pensions business away from private provide...