Aegon looks at Nest to complement proposition

Aegon group marketing director Paul McMahon has said the company is looking at how it might offer Nest as a workplace savings proposition to employers facing auto-enrolment, alongside its existing contract-based pension scheme.

He said: “Auto-enrolment is one of the biggest opportunities providers will have to help address the lack of engagement in long-term savings.

“We’re working closely with Nest to ensure that, where it’s appropriate for customers, we’ll work with government to support employers and encourage employees to save towards an adequate income in retirement.”

Aegon’s workplace pension proposition for corporate clients will also centre on a new online auto-enrolment hub, to be launched in the fourth quarter of 2012.

The hub will provide administration and communication support, such as helping employers identify different categories of employees and provide data on employees who opt-out.

Aegon is also developing a platform for the workplace savings market to be launched in the first half of 2012

Mr McMahon said: “Auto-enrolment presents a challenge, but if it’s done well, it’s also a great opportunity for employers to boost the value of their employee benefits spend.”

Allan Maxwell, director of Glasgow-based Corporate Benefits Consulting, said: “One issue we’ve had with insurance companies is trying to work out how they will deal with Nest.

“Because we work at the smaller end of the market, what Aegon is doing sounds interesting and is something we would like to find out more about. There is a lot of potential business there.”