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NEST is a low-cost pension you may be able to join through your workplace or if you are self-employed. Once a member, you can carry on saving this way even if you change jobs or stop working.
What is NEST?
NEST is a pension scheme set up by the government mainly to help employers with automatic enrolment.
Between 2012 and 2018, employers must automatically enrol most of their workers in a workplace pension scheme and pay in contributions on your behalf.
Your employer chooses the scheme but it must meet minimum standards. Many employers are likely to choose NEST.
The main features of NEST are:
How NEST works
NEST is a defined contribution scheme. This means that the contributions paid in by you, your employer and anyone else are invested and build up your own pension pot. You use this pot to provide yourself with an income in retirement.
Flexible contributions
Tip For every £10 you save, another £2.50 is added to your pension in tax relief.
If you are automatically enrolled into NEST, we will make a contribution and usually you must pay in a minimum amount too. You can pay in extra if you want to. Tax relief is added to your contributions.
You can stop and start contributions when you like, and pay in regular amounts or single lump sums as long as they are within the NEST limits. The minimum contribution is £10. Total contributions, including those from your employer, must not come to more than a yearly limit, currently £4,700 (2015-16 tax year).
Low charges
Did you know?
For every £100 in your pension pot at retirement, stakeholder pension charges could eat away £13. NEST charges would take less than half that.
NEST has two types of charge:
For more information please read the document below:
What is NEST?
NEST is a pension scheme set up by the government mainly to help employers with automatic enrolment.
Between 2012 and 2018, employers must automatically enrol most of their workers in a workplace pension scheme and pay in contributions on your behalf.
Your employer chooses the scheme but it must meet minimum standards. Many employers are likely to choose NEST.
The main features of NEST are:
- defined contribution scheme, so you build up your own pension pot
- flexible contributions
- low charges
How NEST works
NEST is a defined contribution scheme. This means that the contributions paid in by you, your employer and anyone else are invested and build up your own pension pot. You use this pot to provide yourself with an income in retirement.
Flexible contributions
Tip For every £10 you save, another £2.50 is added to your pension in tax relief.
If you are automatically enrolled into NEST, we will make a contribution and usually you must pay in a minimum amount too. You can pay in extra if you want to. Tax relief is added to your contributions.
You can stop and start contributions when you like, and pay in regular amounts or single lump sums as long as they are within the NEST limits. The minimum contribution is £10. Total contributions, including those from your employer, must not come to more than a yearly limit, currently £4,700 (2015-16 tax year).
Low charges
Did you know?
For every £100 in your pension pot at retirement, stakeholder pension charges could eat away £13. NEST charges would take less than half that.
NEST has two types of charge:
- a contribution charge set at 1.8% of whatever is paid in – so, if you contribute £10, after the charge £9.82 goes into your pot
- an annual charge of 0.3% of your pension pot – for example, if your pot is worth £1,000 this year, the annual charge will take away £3, leaving £997 invested in the pot for next year
For more information please read the document below:
| Getting to know NEST |
