Pensions - Articles - NEST comment on Pensions Institute report on charges

 Responding to today's report by Prof Blake and Dr Harrison of the Pensions Institute at Cass Business School, Tim Jones, NEST chief executive said:

 ‘The report by the Pensions Institute shows quite clearly that members are right to be concerned about the impact of high fees on their pension pots. The report also identifies the elements of a well-designed DC scheme, which looks very much like NEST. Low charges, a broadly diversified investment strategy, strong risk management and being run as a Trust are all absolutely important to provide the kinds of outcomes that our members want for their later lives, and all of these are at the very heart of what NEST is and does.

 ‘NEST has been designed to be low charge and offer good value for money for members. For the majority of those saving with NEST, fees will work out to about 0.5 per cent during their time saving with us. We are confident of meeting our investment objectives of significantly outperforming inflation after all charges whilst protecting members from extreme investment shocks. Our modelling suggests we will achieve this throughout different economic cycles and market regimes, meaning we should significantly reduce uncertainty and improve confidence in saving for the long term.'