"We have always thought: if someone really wants to opt-out because of their own personal circumstances, who are we to say that is not the right thing to do?"
Blakstad said the website process, seen by PP, is 99% of what members will see in October. Workers who decide to opt-out and click the appropriate button on the website are first met by a message that says: "Not sure you can afford it? You can try it and take a break later."
If they click to continue through the opt-out process, they are met by another screen that asks: "Are you happy to lose out on money from your employers?"
The screen then allows members to enter their salary and see how much they stand to lose in employer contributions and tax relief. Then they are met by two more screens confirming they are opting-out before the process is complete.
NEST will then inform the worker's employer and write a letter to the individual confirming the opt-out is complete.
On the employer side, employers "engage with the process but do not run it" - which NEST argues relieves the administrative burden around opt-outs.
The process has been structured in this manner based on consultations with behavioural economists.
The economists told NEST the best way prevent bad decisions by members is to highlight that they can opt-out later and stop paying in at any point, as well as the amount they stand to lose in employer contributions and tax relief.
Blakstad added: "What we are looking to do is not to minimise opt-outs, but to minimise inappropriate opt-outs."
NEST RELEASES ITS ‘GOLDEN RULES’ FOR TALKING WITH A NEW GENERATION OF SAVERS
23 May 2012
Latest figures suggest that up to eight million people will be saving for the first time or saving more in all forms of workplace pension once automatic enrolment takes effect. Between two and five million people are expected to become members of NEST. NEST has now launched eight Golden Rules for talking about pensions in the context of automatic enrolment, developed following four years of research among people who will be affected by the reforms. NEST's Golden Rules for communication: Keep it real: Use examples people can relate to and avoid abstract concepts. Rights not responsibility: Tell people what they're entitled to not what they should be doing. Out with the old: Make pensions relevant to their lives now and don’t focus on the details of retirement. One for all: Make it clear automatic enrolment is happening to most workers, not just them. Tell it like it is: Present the facts and avoid 'spin'- people want to make up their own minds. Give people control (even if they don't use it): Tell people about their choices and not that everything's done for them. Take people as you find them: Give people access to information that matches their knowledge and interest.
CIPP Policy News Journal
12/04/2013, Page 261 of 362
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