Question 1

How much does NEST charge in fees?

Accepted Answer

NEST has a two-part fee structure: a 0.3% Annual Management Charge (AMC) on the pot value, plus a 1.8% contribution charge on every contribution. The 1.8% is deducted before your money enters the pension, meaning only £98.20 of every £100 you contribute actually ends up in your pot. The 0.3% AMC is low by itself, but the contribution charge is unusual — many UK pension providers do not charge on contributions.

Question 2

Is NEST a good pension provider?

Accepted Answer

NEST is a workplace pension scheme set up by the government for UK auto-enrolment and is the largest workplace pension scheme by membership. Its 1.8% contribution charge is unusual and can add up over long contribution periods. Whether another pension would cost less depends on pot size, fund charges, employer contributions, investment choice and transfer terms.

Question 3

Can I transfer my pension out of NEST?

Accepted Answer

NEST says it does not charge a fee for transferring money out. Transfers are normally initiated through the receiving provider. Check whether your current employer is still contributing into NEST, because ongoing employer contributions may continue into NEST even if an existing balance is transferred.

Question 4

Why does NEST charge 1.8% on contributions?

Accepted Answer

The 1.8% contribution charge was introduced when NEST was set up to help fund the scheme over time. NEST has stated it intends to remove the contribution charge once the government loan is fully repaid. NEST's 2024/25 annual report said the scheme had begun repaying the loan and remained on track to repay it in 2038.

How much do NEST's fees really cost you?