NEST is a great value pension scheme.
It’s completely free for employers to use, with no charges to set up NEST or for ongoing administration.
It’s also free for professionals to provide a range of services to support employers with NEST through NEST Connect.
And it’s great value for members, with one simple charging structure for everyone. Because we’re run as a trust we don’t have to make profits for shareholders. This means that we charge just enough to cover our running costs.
Read NEST’s assessment of value for money, based on the approach set out by The Pensions Regulator.
How NEST charges work
We have the same low charges for all members. This stays the same whether a member is contributing or not, whatever fund they’re contributing to, and no matter how much is in their retirement pot.
These charges are made up of two parts:
- an annual management charge (AMC) of 0.3 per cent on the total value of a member’s fund each year
- a contribution charge of 1.8 per cent on each new contribution into a member’s retirement pot
So if a member’s pot is worth £10,000, they’d pay an AMC of £30. If £1,000 was paid into their pot over the year, the contribution charge would be £18.
The total charge would come to £48. That’s just under 0.5 per cent of the total value of their retirement pot.
There are no hidden charges or fees for saving with NEST. We won’t charge members for switching their fund, changing their retirement date, transferring their pot or any other services.
How our charges compare
NEST’s charges are low, but we still give members an award-winning investment approach that carefully manages the investment risk they take throughout their time with NEST.
Traditionally, schemes that offer this level of sophisticated investment were only available to higher earners or members of large workplace pension schemes.
The smart operations and economies of scale at NEST mean that we’re able to offer this to everyone.
Over a lifetime of saving with NEST our charges cause less drag on performance than either a standard stakeholder scheme charging the maximum or a scheme charging a flat 0.5 per cent AMC.
This means our members will see more of their contributions in their retirement pot and see less lost in charges.