NEST launches sidecar savings trial

Trustees Agenda posted on 14 November, 2018

The research unit of NEST, Nest Insight, has launched its trial of the sidecar savings structure, aimed at improving the financial resilience of workers. The sidecar savings model adopts a combined account structure, under which contributions above the auto-enrolment minimum level are split between a saver's pension pot and an emergency savings account until the latter reaches the 'savings cap', at which point all contributions are paid into the pension.

In the past, the Government has suggested that the sidecar model could provide an attractive savings model for the self-employed. NEST has announced that Timpson will be the first employer to test the model, with 5,600 of Timpson's employees to be monitored over two years to assess sign-up rates, the amount of savings made and the impact upon their financial well-being.