Nest annual reports show growth and evolution of the UK’s largest pension scheme

• Annual reports show Nest invests £49.7bn on behalf of 13.8 million British workers, with 10.6 billion in UK assets.
• The scheme returned a profit (£11.9m) for the first time, has begun repaying its loan to the government, and remains on track to repay the loan in 2038.
• The 2045 Nest Retirement Date Fund - which represents those in the growth phase, had five-year annualised returns of 9.9%
• CEO, Ian Cornelius says “As the UK’s largest workplace pension provider, serving over 13m members, we continue to influence and advocate for better outcomes for low to middle income savers. We are proud to be investing in the UK economy and supporting the communities where our members live and work.”

Nest has today published the 2024/25 annual report and accounts for Nest Corporation and for the Nest pension scheme. The reports highlight Nest’s continued growth, bolstered by the persistency of pension saving, and its investment in the UK economy.

The Scheme’s membership grew from 13 million as at March 2024 to 13.8 million at March 2025. Growth in membership alongside the persistency of pension savings enabled member contributions to both continue to grow and to out-perform expectations, with Nest receiving, on average, £663 million in new contributions each month. 

For the first time, Nest has recorded a profit of £11.9m which means all the Scheme’s operating expenditure was covered by income from member fees and charges. The Scheme also made its first repayment on the government loan and based on current forecasts, should repay this in full in 2038.

Commenting on the reports, Ian Cornelius, Nest’s Chief Executive Officer, said:

“Reflecting on my first year as CEO, I am proud of the considerable progress and transformation we have achieved at Nest, amidst a period of global uncertainty. Our new 2030 corporate strategy aims to make us a best-in-class pension provider and keeps our members’ best interests at the heart of what we do.

“This strategy is centred around four key member-centric goals: maximising the value of members’ pensions, helping members contribute what's best for them, improving day-to-day financial resilience, and making members’ money go further in retirement.

“As the UK’s largest workplace pension provider, serving over 13m members, we continue to influence and advocate for better outcomes for low to middle income savers. Our aspiration to grow our private market allocations reflects our belief in the long-term value these investments can deliver. We are proud to be signatories to both Mansion House 1 and 2, reinforcing our commitment to investing in the UK economy and supporting the communities where our members live and work.”

Brendan McCafferty, Chair of Nest Corporation, said:

“This was a significant year for Nest, including covering all operating expenditure from member generated income for the first time, and recording a modest profit whilst beginning the repayment of our loan from the government. Nest is on its way to becoming a large scale, leading pension scheme, with world class investment outcomes for UK workers, whilst benefiting UK society. 

“In a year marked by economic volatility and inflationary pressures, our investment approach has remained resilient. We have consistently delivered healthy, stable returns while thoughtfully managing investment risk for our diverse membership. Our message to members is simple: stay the course. Long-term saving, particularly through turbulent times, leads to growth and greater financial security.

“Nest is not just a pension provider; we aim to influence the industry and advocate for better outcomes for all savers. As we grow, we will remain focused on our purpose of building financial peace of mind for all, always acting in members' best interests and building a pension they can continue to trust.”

With around 99% of its members remaining in its default investment strategy, Nest recognises the importance of using its scale to help deliver for its members strong, consistent investment returns over the long-term.

The 2045 Nest Retirement Date Fund - designed for members expecting to retire in 2045 - which represents those in the growth phase, had five-year annualised returns of 9.9%. This is well ahead of Nest’s long-term objective to achieve investment returns of at least 3 percentage points above inflation. For the same five-year period, inflation was 4.7%, so our long-term objective was to generate investment returns of at least 7.8%. 

Nest invests at scale in the UK, with more than a fifth of its assets under management in UK investments. As at end of March 2025,

Nest had around £10.6 billion in UK assets.

Information contained within the reports include (as of 31 March 2025):

• Nest was managing £49.7 billion on behalf of 13.8 million members and more than half a million employers. 
• Each month on average Nest received £663 million in new contributions for its members’ pots this year, compared with £605 million last year.
• 98% of employers using Nest have fewer than 50 employees.
• More than 6,000 new employers joined Nest, on average, each month.
• 53% of the Nest workforce are women, 48% of director-level roles and higher are held by women, and 32% of our workforce are from diverse ethnic backgrounds.
• As of 31 March 2025, Nest had £22.8 billion invested in its climate-aware equities strategies, growing from £12.6 billion invested in 2022. Nest’s climate-aware strategies help to manage climate-related risk by reducing investment in the biggest greenhouse gas and carbon emitters and investing more in green technology like solar and wind farms.
• The Nest 2045 Retirement Date Fund has achieved ten-year rolling annualised investment return of 7.2 per cent (net of Nest’s annual management charge)