New pension scheme set to be called NEST

| January 8, 2010 | 0 Comments
New pension scheme set to be called NEST

The Personal Accounts pension scheme, which is aimed at encouraging low to middle income workers to save for their retirement, is to be re-branded as the National Employment Savings Trust (NEST).

NEST will be one option open to employers who will have to enrol workers into a workplace scheme.

Employees will be enrolled automatically in the scheme unless they opt out, contributing 4% of their salary. The employer will pay 3% and a further 1% will come from tax relief.

The scheme will apply to workers aged over 22 and earning more than £5,035 a year.

Joanne Segars, chief executive of the National Association of Pensions Funds, said: “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. This 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,” adds Ms Segars.

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