RESTRICTIONS on how much low-paid workers can pay into the National Employment Savings Trust (Nest), the default state-backed pension pot, will be removed in 2017, the government said yesterday.
Workers who currently pay subscriptions into Nest can only stash away £4,500 a year. They are also prohibited from moving savings from old jobs, held by other pension providers, into the scheme.
The rules will be abolished following a review into how well Nest was serving its market, pension minister Steve Webb said yesterday.
The move will also give Nest a chance to compete for business with its bigger private sector rivals. The cap was originally put in place ahead of Nest’s roll out in 2012 to stop it muscling in on the private sector provider’s share of the market.