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Self-managed options

Do you already have a firm plan for your retirement? Our self-managed options let you manage your pension savings, your way. You can take all your money from your pension pot or just some of it, or even make monthly withdrawals if you choose.

These options give you access to your pension pot and let you choose how much to withdraw, taking all or some of your money as cash.

Take some of your pension pot as cash

If you’re 55 or over and have more than £3,000 in your pot, you can withdraw some of it each month and leave the rest with Nest. 

You’ll need to take at least £200 each time, and your pot should always be left with a minimum of £2,000 in it.

We won’t charge you for taking lump sums. You’ll just pay the annual management charge for whatever remains in your pot, and you can continue making contributions to it if you choose.

For most people, a quarter of each withdrawal you make will be tax-free but the remaining 75% will be taxed. Find out more detail on our pensions and tax page. 

Remember - your pension pot will get smaller each time you withdraw a lump sum, and there’s a greater risk of you running out of money during retirement.

Take all your pension pot as cash

You can choose to take all of your Nest pension pot in one lump sum. Usually the first quarter will be paid tax-free, and the remaining three quarters will be taxed. 

If you take some, or all, of your pot as cash, this may push you into a higher tax bracket for that year. Depending how much you take, you may pay more tax by withdrawing your whole pension pot at once rather than spreading withdrawals over several years. You may also find that your savings last longer if you only take what you need, when you need it.

If you want to take all your money from your Nest pension pot it’s important to understand that your Nest account will be closed and you’ll no longer be able to pay into it. 

As with any big financial decision, it might help to talk to an expert. Pension Wise provides independent and impartial guidance - book your free appointment.

What are the benefits? 

Control - You can decide how and when your money is withdrawn. 

Independence - Make your own plans for your retirement income.

Frequently asked questions

We can’t provide you with advice about which option is right for you. It’s a good idea to seek professional guidance or advice before making your decision. You may be able to get free guidance from Pension Wise or use a financial adviser. Details of independent financial advisors can be found at unbiased.co.uk. Nest won’t be responsible for any fees you may be charged for this advice.

You can take money out by logging into your Nest account. To find out more, go to How can I take my money out of Nest at retirement?

Usually 25% of each withdrawal will be tax free with the remaining 75% being taxed at your marginal tax rate. Nest will use your tax code - where we have it - to deduct the tax, if necessary, before making a payment. Where we don’t have your tax code, the emergency tax rate will be used in line with HMRC guidance.

If you’re making withdrawals and continuing to pay contributions, you may also be liable to an additional tax charge if contributions exceed £4,000 per year.

Find out more detail on our pensions and tax page.

In these circumstances the remaining fund will usually be paid to your nominated beneficiaries, if you have made a nomination, or at the discretion of the trustee, if you have made an expression of wish. If you haven’t made a nomination or an expression of wish, benefits will usually be paid to your estate. Find out more about what happens to your pension when you die.

What are my other options?

Nest Guided Retirement Fund

Nest Guided Retirement Fund 

If you're in this fund, you can take money out regularly. We'll continue to manage your pot with the aim of reducing the risk of it running out.

Find out more 

Options from other providers

Options from other providers

You can use your Nest pot to access options from other providers. One of these options is to buy an annuity.

Find out more

Last updated: 08/20

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More detail

Take a look at our Taking Your Money out of Nest brochure

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