A retirement income

Turning your pot into a retirement income

When they retire, most people convert their pot into a retirement income. This is known as buying an annuity. It means that you exchange your pot for a retirement income that will be paid to you for the rest of your life.

Your retirement income is paid by a provider which is often an insurance company. If you want, NEST can guide you through your options and help you find a deal that’s right for you when you take your money out of NEST.

Getting a better retirement income

If your retirement pot is worth more than £1,500, NEST can help you to look for a competitive rate through a panel of different retirement income providers.

As you approach your NEST retirement date, you'll be able to use our Retirement Tool. This will collect a range of quotes on how much retirement income different companies from our panel would give you in exchange for your pot.

You don't have to buy a retirement income from any of the providers on our panel and you can go to another company if you like.

Your lifestyle and health also matter. For example if you’re a smoker this can reduce your life expectancy which means you could get a higher retirement income.