Skip to Main Content

NEST's charges

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. And we don’t charge for transferring pots into or out of NEST. 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.

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:

  • a contribution charge of 1.8 per cent on each new contribution into a member’s retirement pot
  • an annual management charge (AMC) of 0.3 per cent on the total value of a member’s fund each year

So if a member paid £1,000 into their pot over the year, the contribution charge would be £18. If their pot was then worth £10,000, they’d pay an AMC of £30.

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.

Transfer charges

Transfers In Transfers out

We don’t charge for transferring pots into NEST – we’ll only charge the 0.3% standard AMC on your transfer value.

However it’s important to check any exit fees or charges with any other providers.

The minimum transfer amount we accept is £50. This doesn’t apply to transfers of pension credits, which are granted as a result of a pension sharing order following a divorce or dissolution of a civil partnership.

We don’t charge for transferring pots out of NEST.

However, it’s important to check on any charges with your other provider.

Find out more about transferring pots into and out of NEST

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.

A graph showing how NEST charges compare to stakeholder and other pension schemes.

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.

Fees and consultancy charging

We don’t allow consultancy charging from contributions or members’ retirement pots. That means professionals can set their own fees for providing advice about NEST. And we won’t charge you anything to use NEST Connect to help support your clients.

The effect of NEST’s charges on future savings

One way of showing how charges affect future savings is through reduction in yield (RiY). This shows how much of the final return of a savings product is eaten up by charges over time.

The graph below compares the effect of NEST charges with a typical charge that applies to other pension plans over different periods.

It's based on the following assumptions:

  • benefits calculated according to the Financial Services Authority basis
  • £50 contributions paid every month
  • average investment growth of 5 per cent per year
  • 1.8 per cent contribution charge throughout the term

This graph shows that many savers would  be slightly better off with NEST’s charge level than they would be with a 0.5 per cent 
AMC, although some savers who are closer  to retirement may have slightly less favourable outcomes.

There are no other charges for saving with NEST. 

Find out more about how members can make a difference to their savings.

Helping you compare charges

In line with best practice guidance, we’ve set out our charges in one document to help employers compare charges between workplace pension schemes.