Rothesay partners with Nest
Nest, the UK’s largest workplace pension scheme, has appointed Rothesay to co-design a bulk deferred annuity for DC pension savers – a market first in the UK. Once the co-design has been completed successfully, Nest will purchase bulk deferred annuities for cohorts of members from Rothesay. The bulk deferred annuity will pool longevity risk and be a key part of Nest’s trustee-managed sustainable income solution for members.
Following the completion of co-design, Rothesay will be able to develop similar insurance solutions for other DC schemes in the UK and around the world.
Ian Cornelius, Nest’s Chief Executive Officer, says: “We will deliver a lifelong pension income solution with the ambition to provide a higher average income to Nest’s members, allow flexibility for them to change their minds about how their money is being managed throughout most of their retirement, and provide certainty they will not run out of money.”
Graham Butcher, Chief Financial Officer of Rothesay, added: “Rothesay is purpose-built to protect pensions. We are delighted to have been chosen to design and deliver this innovative solution that will be transformative for the DC pensions market, bringing enhanced, long-term financial security to Nest members and DC pension savers across the UK, allowing them to maximise their retirement resources without the fear of running out of money.”