Aegon has teamed up with fund group BlackRock to launch an auto-enrolment proposition to take on the National Employment Savings Trust (Nest).
Aegon is the latest in a growing line of life companies to launch an auto-enrolment offering that includes Legal & General (L&G), Standard Life and Aviva.
Employees will be auto-enrolled into the BlackRock-run Aegon Market Intelligence (MI) Savings fund by default.
Employers can offer staff the choice of moving out of the default option and into a higher- or lower-risk versions of the fund, as well as the 24 funds that make up Aegon’s Lifestyle range, run by the provider and third parties.
Simon Butler (pictured), Aegon head of workplace marketing, said the proposition would compete with the likes of Nest and L&G on price, keeping costs down by investing purely in passives.
Auto-enrolment began in October 2012 for companies with 120,000 or more employees, with smaller firms being brought under the reforms in stages until 2018.
Aegon is targeting firms with 50-500 employees.