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What will I get?

We want you to be able to plan for your retirement with confidence. Our goal is to help you make the most of the money you give us to look after. This means keeping it safe and making it work for you.

The amount you get back depends on a number of things, such as the age you start contributing, how much is paid in to your retirement pot and when you retire.

These are the biggest factors and they’re all things you can control.

Starting to save younger – how you could benefit

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Joining a workplace pension when you’re older – what you need to know

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Working out what you might get

It can be hard to say exactly what you might end up with, especially in the early years. But as you get closer to retirement we can estimate what you’ll get much more accurately. Our pension calculator can give you an idea of what you might get.

Use our pension calculator

What you can do to get more

The amount you get back depends on a number of things, such as the age you start contributing, how much is paid in to your retirement pot and when you retire. By taking small steps, you can really make a difference to how much you can get in the end. See how in our examples below.

Starting early

As well as seeing more money go into your retirement pot, starting early means you have more time to benefit from contributions from your employer and see growth in the value of your investments. Over the years this can make a big difference.

Example - Alicia

Alicia is 28 and is thinking of putting off saving until a later date. She expects she’ll get a pension one day but feels it may be too early to think about retirement. She wants to know whether it makes any difference when she starts.

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Increasing your contributions

Putting more money in your account gives you the obvious advantage that there’ll be more in it when you come to take your money out. You’ll also get tax relief on these extra contributions and they’ll have time to benefit from NEST’s investment strategy.

Example     - Jason

Jason is 35. He’s been saving £40 a month in NEST for a few years. He gets £30 a month from his employer and £10 tax relief, for a total of £80. NEST’s pension calculator shows that his retirement pot could be worth about £66,600 on his 67th birthday. But what if he contributed more?

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Putting off taking your money out

People are working for longer these days, as they remain in good health for longer. Working for a few more years could mean more than staying healthy and engaged with life. It could also add substantially to your retirement pot.

Example - Margaret

Margaret is 55. Her retirement pot is currently £20,000 and her total contributions – including her employer’s contribution and tax relief – are £100 a month. NEST’s pension calculator tells her that she might get a retirement pot of just over £49,400 at her State Pension age of 66. But how much more could she get if she put off her plans for a few years?

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What we mean by 'today's money'

All the amounts in our examples are worked out in ‘today’s money’. This means we’re showing what the retirement pots would be worth today. This is different from the amount the savers will actually get when they take their money out of NEST, which will reflect the effect of inflation. Using figures in today’s money makes it easier for you to see the difference that these choices make.

Here's an example of how today's money works

  • Sally’s NEST retirement date is 30 years away. She’s been told that on this date she could get a retirement income of about £100 a week in today’s money
  • This means her weekly retirement income would be worth about the same as £100 a week is worth today. To put it another way it would buy her the same amount of goods that £100 buys her today
  • Prices usually go up over time because of inflation. We assume that inflation will be 2.5 per cent each year. Over time, the effect of inflation builds up so, as an example, in 30 years it will take £210 to buy what £100 buys today
  • That means Sally’s weekly retirement income could actually be £210 a week. This sounds like a lot more than £100. But because of inflation this £210 would only buy her the same amount as £100 buys today
  • That’s why we say that £210 in 30 years’ time is £100 in today’s money

About these examples

All the examples given here are fictional and for illustrative purposes only. In each of them we’ve assumed that:

  • the person gets basic rate tax relief from the government of 20 per cent. That's an extra one-fifth of their own contribution added to their retirement pot
  • their retirement pot is invested in a NEST Retirement Date Fund
  • their pot will grow in value because of the return on NEST investments, minus the charges they pay
  • their rate of growth is between 2 and 3 per cent more than inflation for every year until their NEST retirement date

All contributions are shown in today’s money. The contributions in our examples will actually increase each year in line with inflation.

How we look after your money

Our one aim is to keep your money safe and make it grow. We do this by investing it in one of our NEST retirement funds.

Find out what happens to your money in NEST

More choices when you retire

New pension rules mean there’s more freedom than ever in how you can take out your money when you retire. And you can do it sooner, from the age of 55.

See how you can get your money in retirement