NEST Corporation has announced the members of its retirement panel, from whom members can choose to buy an annuity. Members may also shop around on the open market.

The panellists are Canada Life, providing both conventional and enhanced retirement income products; Just Retirement, providing enhanced retirement income products; Legal & General, providing both conventional and enhanced retirement income products; Partnership, providing enhanced retirement income products; and Reliance Mutual, providing enhanced retirement income products specifically for those who smoke.

Each Retirement Panellist has given a commitment to provide retirement income products on pots from £1,500 upwards. The contracts with providers run for ten years.

NEST chief executive Tim Jones said he was “delighted” with the quality of providers on the panel.

“Our panel will enable members to buy a retirement income product if this is appropriate to their needs, even if they have a small pot. This demonstrates how we’re designing NEST around our members, enabling many of those new to pension savings to be able to consider buying a retirement income for the first time.

“Establishing a panel of high quality providers committed to NEST’s requirements means we can help members meet their aspirations.”

The Pensions Income Choice Association (PICA) welcomed the announcement, and chair Tom McPhail said it looks like a “reasonable compromise” between making sure there was a decent choice of provider and product while taking into account not all would want to meet NEST’s terms.

“Most importantly, no-one with a NEST pension will be forced to use the panel. It is not a substitute for shopping around but a backstop. Retirees still need to consider their options and alternative products such as drawdown or temporary annuities, or perhaps combining their NEST pot with another pension to generate a better income.”

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