Nest, which stands for National Employment Savings Trust, will replace the current ‘personal accounts scheme’ label, and will launch in low volumes in 2011.
Pada says the new brand has been tested with intermediaries, employers and employees and met with a favourable response.
Nest will be run by the Nest Corporation, a not-for-profit trustee corporation, and will have its own website.
Jeannie Drake, acting chair of Pada says: “The reforms to UK workplace pensions, including Nest, represent a consensus settlement reached across industry, political parties and interest groups. We all have one goal in mind – to make saving for retirement become the norm and to put an end to poverty in old age. The release of the new brand today is another milestone along the way to achieving one of the
biggest social reforms of our generation.”
Tim Jones, chief executive of Pada says: “We need a brand which will resonate with the scheme’s potential members; with Nest we believe we will achieve that. We have followed a detailed, research-based process to ensure this will be a brand designed ‘by members, for members’. Nest is clearly favoured by both potential members and employers.”
Angela Eagle, minister of state for pension reform says: “This Government’s radical reforms to the pensions system will ensure millions of workers on low and moderate incomes are able to save for their retirement in a workplace pension with a
new guaranteed minimum contribution from their employer. NEST will play a key role in this and help transform attitudes to saving.”
John Lawson, head of pensions policy, Standard Life says: “Regardless of which pension scheme people are enrolled into, they will start to build up a useful nest-egg for their later years.”
Joanne Segars, chief executive of the NAPF says: “We all need a pensions nest egg to enjoy a comfortable retirement. Already almost 12 million people are saving in a workplace pension with contributions from their employer. Today’s announcement brings us a step closer to the 2012 reforms when nearly all working people, especially those on low and moderate incomes, will be given this opportunity.”
TUC General Secretary Brendan Barber says: “Today is another milestone in building a new pension system with the hatching of Nest. This will give millions the chance to build up their own pension nest eggs with the support of their employer. Nest is a smart identity for the low-cost pensions savings scheme that we desperately need.”