Welcome

Why have I been automatically enrolled?

Let's face it, we don't always do what’s best for us.

Lots of people put off saving for their retirement. Some people think it's too soon to start. Others just find it too confusing.

Millions of people in the UK are not saving enough for their retirement. That’s why a new law has been introduced giving most workers new pension rights and helping them to save for their future.

This new law means that anyone aged between 22 and State Pension age who earns more than £10,000 in a year is automatically enrolled by their employer into a pension scheme such as NEST.

If you've been automatically enrolled into a pension scheme, your employer will make a contribution to your retirement pot. If you contribute too you may be able to get extra money paid in by the government.

But not everyone will want to save in a pension scheme. Those who don’t can choose to opt out.

How much will it cost me?

The new law sets out minimum contribution levels. To make it easier to get into the habit of saving, minimum contributions will start low and increase gradually.

To begin with, at least 2 per cent of your qualifying earnings will normally be added to your retirement pot. Your employer must pay at least 1 per cent of this.

Over the next few years the minimum contribution level will increase to 8 per cent of your qualifying earnings. Your employer will have to pay at least 3 per cent.

So let's look at some examples. The figures in this table are based on qualifying earnings and assume you can claim basic rate tax relief. This is currently 20 per cent, so for every 80p you pay into your retirement pot, you'd normally get an extra 20p added by the government.

Who runs NEST?

NEST Corporation is the organisation that runs the scheme. It reports to parliament through the Department for Work and Pensions (DWP).

NEST Corporation is a trust which means it’s run on a not-for-profit basis and doesn’t have shareholders. This helps us to keep our charges low.

It has a Chair and up to 14 Trustee Members who ensure that the scheme is run in the interests of its members.

A team of senior executives is responsible for the day-to-day running of the scheme.

We also have special committees that oversee different parts of the organisation such as investment and risk.

Your money is looked after by a team of investment specialists at NEST. We also have a Member Panel in place. The panel is made up of people from a variety of backgrounds and helps keep us up-to-date with what you think about NEST and what's important to you.

How safe is my money?

NEST's approach to managing your money is based on lots of research with people like you. We designed the scheme for people who are new to saving by listening to how they feel about their money and what happens to it.

Investing involves some risks. This can be a positive or negative thing. It’s necessary to take some risk in order to try to grow your money much quicker than if you were just to put your money under the mattress.

Because pensions are invested in different things like shares on the stock market and property, the value of your pot could go down as well as up. It’s even possible that you could get less back than you’ve contributed.

However, NEST carefully manages your money. NEST helps you take the right amount of risk at every stage of your time saving with us. This way we aim to get you a better income in retirement while trying to avoid big ups and downs in the value of your savings.

Is it worth saving in a pension scheme?

If you've been automatically enrolled in a workplace pension scheme you'll get extra money added to your retirement pot by your employer. There’s a minimum contribution that your employer has to pay.

This starts at 1 per cent of your qualifying earnings and gradually increases to 3 per cent over time.

The figures in the table show the minimum amount your employer will have to pay and are based on qualifying earnings.

Why do I need a pension?

When you stop working, it's very likely your income will drop, but you'll still have bills to pay.

Lots of people think the State Pension will be enough to live on when they retire. However, the rising cost of living means that it probably won't provide you with as much money as you'll need in the future. So it's a good idea to put some money away while you're still working.

A workplace pension scheme like NEST gives you the chance to save into a retirement pot. You can contribute to this pot throughout your working life.

Paying into a pension scheme is also a way to build up savings for your retirement without having to make all the contributions yourself.

You're likely to get contributions from your employer and most people will get tax relief added by the government.