The chief executive of National Employment Savings Trust (NEST) said the government scheme would require two million members to be successful.
It would be “very pessimistic” to assume that NEST will fail to attract two million members, said chief executive Tim Jones adding he hopes to sign up five million members in the government pension scheme.
However, NEST’s applications are currently restricted to an annual contribution of £4,200 and a transfer cap, he acknowledged.
“At one level obviously as the person running the product why would I want any restrictions so it would be great to see them lifted in 2017. What we recognise was that they were an important part of a political settlement across all the stakeholders that would survive and would be sustainable and has been sustained. While I may not like that there are restrictions on my product at least my product is here”, he said.
“At one level I hope that they get lifted but at another level my job at the moment is to advise government if I feel that the restrictions are likely to materially damage our ability to become viable and I don’t think they are”, he added.
“Becoming viable” meant achieving two million membership, said Mr. Jones. “If we get around two million members at the end of the staging process, at the end of 2016, we think that means viability for NEST”, he said.
NEST will secure its place as a “trusted part of the fabric” of the British financial infrastructure, he said adding he was confident of the scheme’s success.
“The organisation we look to with great respect is NS&I. We think NS&I have done a great job in creating a trusted organisation that people put billions of pounds into”, he said.
“It should become part of the furniture, that NEST is here and it is the place millions of people have savings for their retirement”, he added.