Commenting on the findings in the Aviva Real Retirement report today, Tim Jones, Chief Executive of NEST said:
‘It is worrying that people have to dip into their savings to get by in retirement and highlights how important it is to start preparing as early as possible.
‘Our own research shows that around half of those in their 40s and 50s have no savings at all and around a quarter have less than £5,000. Without help to save more we risk storing up trouble for the future.
‘Workplace pension reforms are coming into force in October this year and will mean workers’ pension pots are topped up by employers and the government. The reforms are vital in helping the nation save, so everyone is able to carry on doing the things they enjoy now when they stop working.
‘NEST is a national pension scheme designed specifically for those who will benefit from these reforms. We believe tomorrow is worth saving for and we are committed to helping millions more achieve a decent standard of living in retirement.’
Commenting on the NAO report on the regulation of DC schemes:
‘The NAO report shows that there is over £380bn invested in defined contribution pension schemes in the UK - an amount that is set to increase dramatically when automatic enrolment is introduced later this year, and NEST is ready to fulfil its role in managing this.
‘The NAO also rightly points out the important role that low charges and high standards of governance can play in ensuring good outcomes for members, so it has never been more important that employers and members have access to quality pension schemes like NEST. NEST is low charge and good value, with world class people, systems and processes for world class governance.
‘NEST is a trust based, not for profit pension scheme run in members' interests. We are confident that our investment approach and charging structure, which will be equivalent to just 0.5 per cent for many members, will deliver the kinds of outcomes that will make tomorrow worth saving for. NEST feels simple for members, but is sophisticated under the bonnet.'
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