DWP blocks Nest's plans for income drawdown

In today's response, DWP also said it would look into "offering guidance to members, offering benefits in the form of lump sums, and exploring potential links with providers of retirement products", but announced no firm plans.

Today Nest also revealed it would not apply its 1.8 per cent contribution charge on transfers into the master trust, after the government confirmed it was lifting a four-year ban on transfers in.

That will mean funds transferred into the scheme will only be subject to Nest's 0.3 per cent annual management charge.