Nest launches consultation to support introduction of flexi‑access drawdown

Nest has today launched a consultation on proposed changes to its scheme rules. The changes support upcoming legislative changes which will enable Nest to offer the full range of retirement options and death benefits available to other pension schemes.

Amendments to the Nest Order, which provide a specific power for Nest to offer flexi-access drawdown, and other relevant options, as benefits to its members, have been laid before Parliament. This consultation sets out the corresponding proposed changes to the Nest Rules. These would sit alongside the Order changes, providing additional detail and a broad framework for flexi access drawdown and related benefits.

The consultation focuses on technical updates to Nest’s rules to support the introduction of flexi access drawdown. These include proposals to:

• introduce a new drawdown account alongside the existing pension account, setting out how funds can be designated to drawdown and how income can be taken, with detailed terms determined by the Trustee from time to time.
• update the rules on benefit age to clarify that they do not apply to funds held in a drawdown account.
• add provisions for new retirement and death benefit options – including scheme pensions and drawdown for dependants, nominees or successors.
• amend the transfer out rules to allow drawdown accounts to be transferred and to permit partial and separate transfers of pension and drawdown accounts, subject to legislation and tax rules.

The consultation document can be found on Nest’s website.

The consultation runs from 4 March 2026 to 29 April 2026. Responses must reach Nest Corporation by the closing date and can be submitted by email or post. Full details on how to respond are set out in the consultation document.