Why UK pension fund NEST is tipping $10 billion into industry fund-owned IFM 

Investment Magazine

In 2008, the UK government had a serious problem. Corporate defined benefit plans had been closing for decades and defined contribution (DC) funds weren’t filling the gap. More and more people had no private pension savings, and social security wasn’t going to cope – meaning an increasing number of Britons would fall into poverty in retirement.

The government had three options: raise taxes to make social security more sustainable; get people to work longer; or make them save for retirement in a more meaningful way. They settled on a mix of all three. The retirement age rose, and will keep rising, while every employer was required to offer every employee a DC workplace pension – even if they only employed a nanny. The National Employment Savings Trust (or NEST, as it’s probably better known today) was established to make sure that everybody could access a pension that was compliant with the new regulations.

The rest of this article can be found at investmentmagazine.com.au.