NEST Corporation today (10 July) published its annual report and accounts for 2013/14, along with the annual report and accounts 2013/14 for the NEST pension scheme.
NEST Corporation Chair, Lawrence Churchill said:
‘If the year 2013/14 made any mark on the pensions landscape, it was to cement automatic enrolment as one of the most successful pension policies in a generation. The numbers speak for themselves. Across the UK, the number of automatically enrolled members totals over three million. NEST membership is up from around 80,000 last year to over a million members by the end of March 2014, and assets under management from £3.8 million to £104 million.
‘The relative smoothness of our first full year of operation was helped by the large employers preparing thoroughly and in plenty of time. Now that we have valuable hands-on experience of how to successfully set up employers at NEST, we know how vital certain elements are, like early preparation, engaging with the payroll community, a good knowledge of the workforce, and ensuring data is clean and ready. This is a message that needs to get out to the small and medium-sized employers whose automatic enrolment staging dates are coming up.
‘The support of payroll professionals, accountants and intermediaries has been and will continue to be crucial.’
NEST Corporation chief executive, Tim Jones, said:
‘Tens of thousands of employers come under the duties in 2014/15. NEST stands ready to continue working alongside the private sector to ensure all employers are well served by the pensions industry.
‘Many employers will want to work with financial advisers and other intermediaries to help set up or run their automatic enrolment processes. We’re committed to helping equip intermediaries to meet this challenge, in particular through a programme of training in how to use NEST’s ‘delegated access’ functionality.
‘Along with helping employers meet their duties, we are also focused on wider policy changes. The March 2014 Budget announced the government’s intention to simplify the rules around how DC pension members can access their retirement savings. As we develop our thinking, we plan to consult widely to ensure that we bring the best ideas to bear on delivering appropriate solutions to our members.’
NEST scheme key stats:
As at the end of March 2014:
• NEST had over 1 million members (2012/13: 80,000), including over 600 self-employed members. The average opt out rate was 8 per cent
• NEST had £104m assets under management (2012/13: £3.8M), largely invested in the default funds (NEST Retirement Date Funds). Over 99 per cent of members are invested in those funds.
• NEST was working with just under 4,700 employers (2012/13: 347)
As at the end of June 2014:
• NEST had approximately 1.3 million members and over £160m assets under management
• NEST was working with over 7,900 employers
The NEST Corporation accounts highlight the successful onboarding of some of the largest employers in the UK, and the plans the Corporation has put in place for the next stages of automatic enrolment which will see a step change in the increases in volumes of employers coming to the scheme.
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