NEST rival launches with 0.3% AMC plus £1.50 per month admin fee

Now Pensions, the multi-employer scheme set up by Danish pension scheme ATP to rival the National Employment Savings Trust, has unveiled details of its product offering.

The product will offer members one investment choice with an administration charge of just £1.50 per month and a 0.3% annual management charge.

Now Pensions said its investment strategy would be based on three funds - a managed diversified growth fund, a retirement protection fund and a cash protection fund.

At the pre-retirement phase the allocation to the managed diversified growth fund will be gradually reduced using the retirement protection fund, which has a return target based on annuity prices, and the cash protection fund. Members can choose not to use the retirement protection fund.

NOW Pensions claimed 95% of pension scheme members choose the scheme's default investment strategy - justifying its decision to offer just one.

The firm said it would also introduce an auto-enrolment software in a bid to make it easy for employers to administrate alongside its payroll and human resources systems.

Now Pensions chief executive Morten Nilsson (pictured) said: "We believe auto-enrolment is a wake up call to the UK pensions industry, and ATP's experience in servicing virtually the entire Danish working population and proven track record shows there is another way.

"By diversifying investments and remaining agile in the markets, ATP has optimised members' returns in any economic climate.

"ATP's results have beaten the Danish standard by more than 2 percentage points on average over the past decade by returning 7.4% per year."