Nest faces industry revolt over default drawdown plans

Peter Walker, chief operating officer at auto-enrolment provider Smart Pension, said Nest was created “to do the things the market cannot or will not do”.

He continued: “Nest is not there to provide government-subsidised competition to the market. The market provides these [drawdown] services pretty well.” For that reason, he said there was no reason for Nest to enter the drawdown market.

Given the auto-enrolment market is also well-served by the market, he questioned whether, had Nest not been set up previously, there would be any need to set it up today.

Nest chief executive Helen Dean said the government set up Nest to “help millions of workers achieve a good level of retirement”. She said this had not changed, but that pension freedoms had changed the landscape. She said the call for evidence “explores how NEST might adapt to those changes”.

A DWP spokesperson encouraged “everyone to submit their views, including pensions providers”.