PensionsJan 4 2017

Huge AE volumes set to test Nest in 2017

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Huge AE volumes set to test Nest in 2017

The National Employment Savings Trust (Nest) is preparing for a massive surge in individual businesses signing up to its services in 2017.

More than 700,000 small businesses are expected to enter the auto-enrolment system this year, and a large proportion are likely to join the government-backed provider.

But Paul Budgen, Nest’s director of business development, said the master trust was ready to meet the demands.

"As 2017 progresses, more people will be using our systems than ever before. We’ve built our systems to manage these volumes, so 2017 is the time to see our planning put into practice," he said.

"If 2016 was any indication, I think many people will be impressed by how smoothly smaller employers will take to the process."

He said Nest would also use re-enrolment as a chance to "reconnect" with large employers.

"2017 is obviously an important year for auto enrolment in larger employers too. Many will be reaching their re-enrolment dates for the first time," he said.  

"For me, this is an excellent chance to kick the tyres of our relationship with employers, their advisers and their workers to make sure their auto enrolment process are working for everyone.

"As the technologies, strategies and systems supporting auto enrolment have evolved rapidly, re-enrolment can also be a chance to see if the pensions processes an employer has in place can be fine-tuned. I’d say re-enrolment is a real opportunity to connect with larger employers and highlight the latest approaches."

Commenting more generally, Mr Budgen predicted 2017 would be a "pivotal" year for the sector, particularly with the new rules for master trusts coming into effect and the government’s first auto-enrolment review getting underway.

"There’s a lot of important policy decisions to be made in 2017 and we’re following the discussions with interest," he said.

"2017 will be an important year for ensuring master trusts are all doing what’s needed to look after their members’ money well.

"We can pause and take stock of the progress made to date and look to the future through the Government’s 2017 review," he said.

james.fernyhough@ft.com