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Pensions: Personal Accounts rebranded to National Employment Savings Trust

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The national pension scheme has up until now been referred to as Personal Accounts, but the Government has announced the scheme will now be called National Employment Savings Trust (NEST).

Pensions minister Angela Eagle announced the name of the scheme yesterday.

She said: "This Government's radical reforms to the pensions system will ensure millions of workers on low and moderate incomes are able to save for their retirement in a workplace pension with a new guaranteed minimum contribution from their employer.

"NEST will play a key role in this and help transform attitudes to saving."

Angela Mohtashemi, director, HR and pensions communications at PricewaterhouseCoopers, explained: "The obvious option was to simply name the scheme the ‘Personal Accounts Pension Scheme', which is probably what most of the pensions industry was expecting.  Instead, the Personal Accounts Delivery Authority commissioned extensive consumer research, which resulted in this descriptive name that makes a neat acronym.

 "A brand is far more than just a name and a logo - it is a promise with an underlying set of values.  The NEST brand will need to be established not only through the scheme's communications but more importantly through the actual experiences of its customers, those being members, their employers and intermediaries, and the brand promise will need to be tailored to each of these audiences."

And the rebrand has been well received in the pensions industry.

Joanne Segars, Chief Executive of the National Association of Pensions Funds said: "We all need a pensions 'nest' egg to enjoy a comfortable retirement. Already almost 12 million people are saving in a workplace pension with contributions from their employer. The announcement brings us a step closer to the 2012 reforms when nearly all working people, especially those on low and moderate incomes, will be given this opportunity."

And Andrew Harrop, head of policy at Age Concern and Help the Aged, added: "We welcome the latest step towards the introduction of personal accounts. NEST is a vital part of pension reform as it will offer a low-cost service to lower-income employees who the financial services industry finds hard to reach.
 
"By allowing workers to carry their account with them when moving to a new employer which does not offer its own scheme, the personal accounts will also help solve the issue of workers accumulating small pots from different workplace pensions, which are often difficult to turn into a source of income after retirement."