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How does Nest manage my money?

Understanding how pension schemes look after your money can seem confusing, but at Nest, we try and keep things simple.

We have one goal – to help you get a better income in retirement.

For us it’s important to explain exactly what we do, so that you can confidently make decisions about saving for your future.

What happens to your money?

To prepare your money for when you’re ready to retire, we name each fund so that it corresponds with the year you’ll take your money out (for example, Nest 2025 Retirement Fund is for members who have chosen to retire and take their money out in 2025). Retirement date funds are originally set to the later age of 65 or your State Pension age. However you can change this to any age from age 55 onwards, whatever best suits you.

Typically a portion of the money in your fund is kept as cash. The rest is used to buy shares in companies or property, and make loans to governments and big companies. We don’t put all your money in one place – that way it’s safer and more likely that your investments will increase over time.

Some investments will grow less than others but are more certain, and others are less predictable but give you the chance to grow your money more. So our experts look at lots of different areas to make sure your money is spread across a range of investments. By doing this, we give your money the best chance of growing steadily and faster than the rising cost of living.

This is generally the most suitable fund for most members. However, depending on your religious beliefs, moral choices or appetite to risk, you are able to transfer to another Nest fund (such as Nest Sharia Fund, Nest Ethical Fund, Nest Lower Growth Fund or Nest Higher Risk Fund).

What happens to your money

Read more about Nest’s approach to pensions and investments

Thinking about taking out your money

To make sure we invest your money in the right way it’s important that we know when you expect to take your money out. We call this your Nest retirement date.

When you join, your Nest retirement date is set as the year you are expected to start collecting your State Pension or age 65 or later. Your retirement pot will be invested in the Nest Retirement Date Fund that corresponds to your Nest retirement age.

If you’re looking to retire in the next 15 years, you’ll need to think about whether or not you still want to take your money out on your current Nest retirement date. You can change your Nest retirement date at any time by logging into your online account.

Other fund choices

We believe that Nest Retirement Date Funds, which are designed to prepare your money for when you’re ready to retire, are likely to be the best choice for most members. 

However, there are other fund options that you may decide are more suited to your preferences. They are:

  • Nest Ethical Fund
  • Nest Higher Risk Fund
  • Nest Lower Growth Fund
  • Nest Sharia Fund
  • Nest Pre-retirement Fund
  • Nest Guided Retirement Fund

Find out more about Nest’s other fund choices

Want to know more about how Nest invests your money?

Growing your pension savings

Investing responsibly can boost your pension - and improve things for the people you live and work with too.

Last updated: 11/20