Really quite concerned to see The Minister for Pensions comments (as reported by Money Marketing) today. For those who have yet to see this, the Minister was suggesting that the industry is ‘dissing’ NEST. The following is a quote direct from the Money Marketing website:
“employee benefit consultants have gone around dissing Nest because they do not get the commission. Nest would be very suitable for many small and medium-sized firms but the IFAs and employee benefit consultants are not doing it.”
For the full article please see the following link:
Those who know me well will know that I never champion the pensions industry when I believe that we are wide of the mark. But I really do think that Steve Webb’s comments here are largely unfounded, and quite unfair, on the vast majority of the industry.
All the major benefit consultancies are fully aware of the NEST offering. And whilst NEST does have some very good features, it also has some limitations too. It’s the job of the benefits consultant to recommend the right pension scheme solution for each and every scenario. NEST is now part of the pension landscape, and is an offering that all can consider, but it does not follow that it should always be used.
The vague threat of regulation here is just completely unnecessary. NEST is what it is. It was never intended to be suitable for all, and that is how it is being viewed by both the benefits industry and employers. Put simply, if the Government wanted everyone to use NEST, then this should have been made clear from outset.
Best regards
Steve
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