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How my money is managed

Lots of people don’t understand how pension schemes like NEST look after their money. Some just aren’t interested. But we know from what our members have told us that not knowing what happens to their money makes lots of people uncomfortable.

At NEST, we try and keep things simple. When we look after your money we have one goal – to give you a better income in retirement.

If you’re interested, we want to help you understand what we do so that you can confidently make decisions about saving for your future.

What happens to my money

When we get money from you or your employer, we’ll take off any charges before it goes into your pot. Once your opt-out period has ended, it is then invested in the NEST scheme.

Find out more about your costs and contributions

Your money is then used to buy shares in companies or property, make loans to governments and big companies, with some kept as cash. These investments are likely to grow your pot over time. Some will grow less than others but by spreading your money across a range of investments, your money is safer. Other investments are harder to predict but give you the chance to grow your money more.

A graphic showing how NEST invests retirement pots in different areas.

The important thing is that we don’t put all your eggs in one basket. Our experts look for a range of opportunities in lots of different areas to make sure your money has the best chance of growing steadily and faster than the rising cost of living.

NEST Retirement Date Funds

NEST Retirement Date Funds are the option that every member will be enrolled in when they join. Each fund is named for the year when the fund will mature and you’ll take your money out. For example, the fund for members who’ll take their money out in 2025 is called the NEST 2025 Retirement Fund.

NEST Retirement Date Funds are designed to prepare your money for when you’re ready to retire.

A graphic illustrating the different phases of NEST's investment approach.

Other fund choices

We believe that NEST Retirement Date Funds are likely to be the best choice for most members. But we know some members may have preferences about where their money goes or how it’s looked after. Our other fund choices are designed for them. They are:

  • NEST Ethical Fund
  • NEST Higher Risk Fund
  • NEST Lower Growth Fund
  • NEST Sharia Fund
  • NEST Pre-retirement Fund

Find out more about NEST’s other fund choices

Think about when you’ll want to take your money out

To make sure we invest your money in the right way it’s important that we know when you expect to take your money out. We call this your NEST retirement date.

When you join, your NEST retirement date is set as either the year you start collecting your State Pension or the year you turn 65, depending on when you were born. Your retirement pot will be invested in the NEST Retirement Date Fund that corresponds to your NEST retirement age.

If you’re looking to retire in the next 15 years, you’ll need to think about whether or not you still want to take your money out on your current NEST retirement date.

You can change your NEST retirement date at any time by logging in to your online account and choosing ‘Edit your profile’.

Want to know more?

Our investment approach is based on research into the latest thinking on looking after people’s money and the needs of today’s savers. It’s easy for you to use but sophisticated enough to respond to the changing demands of the financial environment.

Find out more about NEST’s investment approach

What you’ll get in the end

You could be saving in NEST for 40 years or more. The amount you get back depends on a number of things, such as the age you start contributing, what you and your employer contribute and when you retire.

Find out more about what you'll get