Corporate advisers are predicting low proportions of their client base will choose to introduce Nest to staff members without existing pension provision going forward.
In an exlusive survey of more than 40 advisers at the Corporate Adviser Summit only 26 per cent of advisers said they expect a quarter or more of their clients to roll out the proposition for employees lacking a pension scheme, while nearly three quarters (74 per cent), expect less than a quarter of clients to use the savings product.
When it comes to calculating the level of consultancy charges to be paid on the product, advisers are divided. Faced with a hypothetical example of a provincial manufacturing organisation with 1,000 employees where no face to face financial advice would be given, advisers express differing views on the level of fees that should be charged.
Just over two fifths (43 per cent) felt the proportion of first year combined employer and employee contributions used to pay the consultancy charge should be in the order of 0-5 per cent. In the light of the anticipated Nest products and increasingly low pension savings levels generally, a significant minority -one third of advisers – predicted a trend back to trust-based pension schemes.
And there was overwhelming consensus that the industry needed a single pensions regulator for contract-based and trust-based pensions going forward with 93 per cent agreeing.