Danish pension provider ATP will challenge the national employment savings trust (Nest) by launching a pension that is targeted at low to middle income earners.
Former Conservative shadow pensions minister Nigel Waterson will be working with ATP ahead of the scheme's launch but it has not been confirmed whether he will be taking on a permanent role with the firm.
Morten Nilsson, head of international operations at ATP, said that the pension's investment approach was likely to offer five different asset classes, including infrastructure and oil.
Nilsson said: "We have been looking at the UK market for quite some time and what we are seeing is that there is a need for simple efficient products that perform."
ATP had been one of the original bidders for the administration contract for Nest but pulled out of the running in October 2009.
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