National Employment Savings Trust

The National Employment Savings Trust (Nest, sometimes branded Nest Pensions) is the United Kingdom’s public-service defined contribution workplace pension scheme, created to support automatic enrolment under the Pensions Act 2008. It is run by Nest Corporation, a public corporation (non-departmental public body) accountable to Parliament through the Department for Work and Pensions (DWP).^[8][9] Nest has a public service obligation to accept any employer that wishes to use the scheme to meet automatic-enrolment duties.^[10]

As of 31 March 2025, Nest reported managing about 49.7 billion on behalf of around 13.8 million members.^[11] Nest is an authorised master trust supervised by The Pensions Regulator.^[12]

The 2006 Pensions Commission recommended a low-cost, national workplace pension scheme. The Pensions Act 2007 established the Personal Accounts Delivery Authority (PADA) to develop the model, and the Pensions Act 2008 created Nest (originally known as Personal Accounts). PADA’s responsibilities later transferred to Nest Corporation, the scheme trustee.^[13] In April 2014, Nest announced that it had over one million members saving in the scheme.^[14] From April 2017, scheme-specific caps and transfer restrictions were removed; transfers in and out are now permitted, subject to HMRC and scheme rules.^[15][16]

Nest is operated by Nest Corporation, which acts as the scheme trustee. Nest Corporation is a public corporation sponsored by DWP, its Chair and Trustee Members are appointed through the public appointments process.^[17][18] Nest’s public service obligation requires it to accept any employer wishing to use the scheme for automatic enrolment.^[19]

Nest is an authorised master trust under the regime introduced by the Pension Schemes Act 2017 and is supervised by The Pensions Regulator; Nest received authorisation in 2019.^[20]

As of 31 March 2025, Nest reported c. 13.8 million members and £49.7 billion in assets under management.^[21] In recent years the scheme has reported improving financial results; where figures are cited, they are per Nest’s annual report and accounts.^[22]

Nest does not levy charges on employers for using the scheme.^[23][24]

Members pay two charges: a 1.8% contribution charge on each new contribution, and a 0.3% annual management charge (AMC) on the total value of the pot.^[25] Nest does not charge for transfers in or out, switching funds, or changing a retirement date.^[26] Default arrangements used for automatic enrolment are subject to a statutory charge cap of 0.75% a year (or an equivalent combination), excluding specified costs and transaction costs.^[27][28]

Under UK automatic-enrolment rules, the legal minimum for a qualifying defined contribution scheme is a total contribution of 8% of qualifying earnings, with at least 3% from the employer and the balance from the worker (including tax relief). This level has applied since 6 April 2019 after a phased increase from earlier, lower rates.^[29] The Department for Work and Pensions reviews the earnings trigger and the qualifying-earnings band each tax year.^[30]

By default Nest uses the statutory qualifying-earnings basis. Employers may instead certify on an alternative earnings basis where the scheme still meets minimum quality standards (for example, using basic pay or all earnings).^[31][32]

Nest operates relief at source. Member contributions are paid net of basic-rate income tax and Nest claims the 20% relief and adds it to the pot, including for members who do not pay income tax.^[33] Higher- and additional-rate taxpayers can claim any extra relief through Self Assessment or HMRC adjustment.^[34]

A worker who is automatically enrolled may opt out within one month and receive a refund of their own contributions.^[35] Employers must repeat the assessment and re-enrol eligible staff roughly every three years.^[36]

Since 1 April 2017 there has been no Nest-specific cap on the amount that can be paid in, and individual transfers in are permitted; transfers out are also allowed.^[37][38][39] Contributions remain subject to HMRC rules, including the annual allowance (currently £60,000 for most people) and the money purchase annual allowance for those who have flexibly accessed defined contribution savings.^[40][41]

Members who are automatically enrolled into Nest are usually placed in a Nest Retirement Date Fund, which follows a life-stage approach. Members can change funds after enrolment, and a small number of alternative fund choices are available.^[42]

• Minimum employer contribution
• Pensions in the United Kingdom
• Auto-enrolment in the Republic of Ireland
• Canada Pension Plan
• Pensions in the United States
• UK labour law
• Basic state pension
• KiwiSaver
• The People's Pension

• http://www.dwp.gov.uk/docs/pensionsbillimpactassessment-final2.pdf – this is the impact assessment released in December 2007 for the Pension Bill 2008. It provides a complete appraisal of the reforms. There are also fact sheets on reactions from individuals and employers which have implications for the UK pension industry.
• http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep558.pdf – Research document 4
• http://www.ifs.org.uk/publications/4386 – IFS PowerPoint presentation discussing the adequacy of these reforms
• http://www.ifs.org.uk/pr/personal_accounts.pdf – IFS press release
• bbc.co.uk – BBC – Personal account benefit 'small'

• http://www.dwp.gov.uk/docs/pensionsbillimpactassessment-final2.pdf – Impact assessment (December 2007) for the Pensions Bill 2008, including an appraisal of automatic-enrolment reforms.
• http://research.dwp.gov.uk/asd/asd5/rports2009-2010/rrep558.pdf – DWP research report (2009–2010).
• http://www.ifs.org.uk/publications/4386 – Institute for Fiscal Studies (IFS) presentation on adequacy of reforms.
• http://www.ifs.org.uk/pr/personal_accounts.pdf – IFS press release.
• https://news.bbc.co.uk/2/hi/business/8101097.stm – BBC coverage of personal accounts policy.

• NEST Corporation official website
• https://www.gov.uk/browse/working/workplace-personal-pensions – UK Government website
• Explanation of known NEST defect with postal addressing
• Pensions Policy Institute – publishing independent non-political research into UK pensions policy
• Association of Member-Directed Pension Schemes (AMPS) – The principal body for discussing changes involving self-administered pension schemes
• Aon Hewitt United Kingdom – Definition of Auto Enrolment
• The People's Pension