WTW and Hymans Robertson have been appointed by Nest Pensions, the UK’s largest defined contribution (DC) workplace pension scheme by members, to assist with their innovative programme to develop a new retirement income offering for DC retirees.
With more than 13 million members, one million employers and more than £40bn in assets under management, Nest performs an essential role in facilitating high quality DC auto-enrolment while delivering value for money. As Nest’s membership matures, members will increasingly rely on income from their DC savings in retirement.
Nest is also building on its products, services, guidance and tools to provide members with a life-long, sustainable income, whilst retaining the benefits of flexibility introduced by pension freedoms.
Mark Rowlands, Head of Retirement at Nest, said:
“Nest has been a founding member of the UK’s auto enrolment pension market, bringing millions of people into pension saving, many for the first time. One in three of the working population is expected to have a Nest pension pot by the late 2020s, and we want to ensure their journey to retirement is as seamless as their savings journey with Nest.
“We know our members want a decumulation product which provides some flexibility in the early years of retirement, but also provides sustainable lifelong income as a wage replacement, so that it’s in place by the time our members need it.
“WTW and Hymans Robertson’s experience in these areas and their market leading expertise in retirement offering design, modelling, investment and insurance solutions, member support and engagement, means they are well placed to help us develop solutions that will help our members make the most of their savings throughout their retired lives.”
Simon Eagle, senior actuary at WTW, said:
“Working with the UK’s largest DC pension scheme to deliver innovative new solutions for members is a real privilege. We are delighted to be assisting Nest so broadly to advance their retirement proposition and support the development of a member engagement approach in the lead up to, and in, retirement. Our experience in this area and the wide range of expertise we can draw on from across our business, make this a very exciting challenge with outcomes that are likely to benefit members for years to come.”
Paul Waters, Head of DC Markets at Hymans Robertson, said:
“We know across the industry large numbers of DC savers are facing a profound retirement adequacy challenge, along with complex decisions at retirement.
“Innovative retirement solutions can play a large role in addressing these challenges and delivering better member outcomes. Nest’s groundbreaking work here is leading the way and we know from experience, where Nest innovate and lead others then follow, enabling wider industry change. We are delighted to be working with Nest, using our pension and insurance market expertise to help design and implement this important initiative, helping millions of savers.”
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