You are here: Home - Retirement -

People should be allowed to save more – campaigners

0
Written by:
28/01/2013
A group of consumer organisations, employers and trades unions have demanded the Government lifts the restrictions on the National Employment Savings Trust.
People should be allowed to save more – campaigners

The government consulted on lifting the contribution limit and the ban on transfers in and out of NEST last year. The consultation closes today.

The Trades Union Congress, Age UK, manufacturers’ organisation EEF, the Federation of Small Businesses, the British Chambers of Commerce and Which? have all signed the letter claiming the restrictions make auto-enrolment more difficult for employers and workers.

Signatories complained that the restraints prevent employers using NEST as the single scheme for their entire workforces, and prevents workers from putting in extra contributions towards the end of their working lives to maximise their savings.

They called on the government to remove the restrictions now, rather than reviewing the restraints after a review in 2017 as currently planned. The signatories claim this will be too late as employers will already have selected their schemes and auto-enrolled their staff by then.

The letter reads: “NEST was established as a low cost not-for-profit scheme to serve the low- to middle-income market which was not being well served by commercial suppliers.

“To the extent that the restrictions forced NEST to concentrate on this target audience, they have done their job. Lifting the restrictions now will not undermine this. On the contrary, it will improve the prospects of NEST’s objective being met.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Update your retirement age or miss out on £10,000

Workers are being urged to update the planned retirement date on their pension documents to avoid missing out...
Update your retirement age or miss out on £10,000

Over 60s missing out on £1bn of retirement savings

Older savers are throwing away £1.75bn in pension savings by choosing not to contribute to a workplace pension...
Over 60s missing out on £1bn of retirement savings

The true cost of a poor credit score revealed

Consumers with a poor credit score pay higher interest rates on credit card, loans and mortgages.
The true cost of a poor credit score revealed

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

  • Discover how your pension can be used to make a range of investments with attractive tax advantages. By… https://t.co/LMSAsBt3hb
  • RT @Defaqto: Looking for your first job? We outline our top tips for understanding and improving your credit score. Take a look @YourMoney
  • @YourMoneyUK Biased. People don't look at this stuff rationally. They also would not buy annuities if there ware decent alternatives.

Read previous post:
Top tips to protect your home from flooding

The snow may have subsided but households are being urged to protect their properties against heavy rain.

Close