Almost half of financial advisers (47 per cent) say employers feel unable to choose NEST because of the scheme’s annual contribution limit and/or transfer restrictions, a survey of 699 members of the Personal Finance Society (PFS) has found.

The survey results were published today as part of the PFS’ consultation response on whether NEST’s restrictions should be lifted, and follows a call from NEST to scrap these restrictions by 2014 as they “would be detrimental to members and employers”.

The survey found that 86 per cent agreed that NEST members should be permitted the same transfer rights as members of other occupational pension schemes; 72 per cent believe NEST should be able to participate in an automatic transfer system; 70 per cent said there is evidence that employers are or will prioritise a single scheme solution for auto-enrolment; and 69 per cent said the restrictions could influence employers’ decision making.

However, opinions were divided on whether the annual contribution cap of £4,400 should be increased or removed altogether. Forty per cent of advisers said the contribution limit should be increased while 36 per cent believed it should be removed.

The Department for Work and Pensions is due to publish a summery of consultation responses this spring.

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