Who funds NEST?

How is NEST funded?

NEST collects an annual management charge (AMC) from its members.

This is set at 0.3 per cent of a member's total fund each year. For example, on a total fund of £10,000 an AMC of 0.3 per cent would be £30.

Members will also pay a charge of 1.8 per cent on new contributions they make. We anticipate removing this charge once the costs of setting up the scheme are met.

Government loan

NEST has agreed a loan with the Department for Work and Pensions, which will pay for the scheme to be set up. The loan will also help to pay for running the scheme in earlier years, while the membership is still growing.