Nest, the UK’s largest pension scheme by members, has partnered with annuity broker Retirement Line to provide its 13 million members with guidance and support in accessing annuity options for retirement.
The partnership marks the first time Nest is providing direct guidance on annuities, helping members navigate the market and access guaranteed income products. Previously, members who wanted to buy an annuity had to do so independently. Members who want to buy an annuity can now receive structured support, including guidance on comparing quotes and checking eligibility for enhanced annuities.
According to research by Nest, many members want help managing retirement risks. The partnership aims to broaden the options and guidance available, supporting members in planning for a stable income throughout retirement.
Nest member proposition director Deborah Perkins says: “For some of our members, many of whom were brought into pension saving by auto enrolment, an annuity could be an appealing retirement option. But there is a significant risk that comes with trying to navigate the annuity market without support to shop around for deals that are suitable for their needs.
“Everything we do is built around supporting people to set their own retirement goals and provide them with the tools to reach the outcomes in a way that suits them. With this latest addition to our suite of retirement solutions, our members will know Nest is helping them every step of the way in their retirement journey, supporting our purpose of building financial wellbeing for all.”
Retirement Line director of propositions and corporate partnerships Mark Ormston says: “We are delighted to partner with Nest on the crucial area of exercising the open market option. There can be a significant difference between the lowest and highest annuity rates – and therefore income – offered by annuity providers. By accessing our annuity guidance, information and quotation service, we help people maximise their guaranteed annuity income, should they choose to use some or all of their Nest pension pot to buy an annuity.
”As well as comparing quotes from all the leading providers, we also take great care to check our customers’ eligibility for enhanced annuities, which pay more income on account or poor health or certain lifestyle decisions.
“We are confident that Nest’s scheme members will find our service beneficial in helping them make the most of their pension savings.”