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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. NEST is run for the benefit of its members and does not have any 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.

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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.

Transaction costs and charges

NEST’s charges cover the administration of members’ pension pots and any management fees associated with investing their money. With all pension schemes there are also costs for buying and selling different investments at different times, known as transaction costs. We don’t charge for these separately, but they are factored into the overall investment returns members receive.

Details of the transaction costs for each of our default funds and fund choices can be found in our annual scheme report and accounts.

You can see the combined effect of the annual management charge, contribution charge and transaction costs, over time in the effect of our costs and charges booklet.

You can find out more about the policies and principles that guide our decisions when managing members’ money in our Statement of Investment Principles

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 the 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 another provider.

Find out more about transferring pots into and out of NEST

The effect of our costs and charges

We've illustrated the effect of our costs and charges over time in a single document.

The effect of our costs and charges