Nest Guided Retirement Fund

Who is this option for?

You can choose this fund if youre aged between 60 and 70 and have at least £10,000 in your pat. If this applies to you but you don't tell us what you want to do with your pot at your intended retirement date, then it's likely we'll move your pot into the Nest Guided Retirement Fund.

If this doesn't apply to you as your pot is less than £10,000, you could consider paying more money into it. You may have other suitable pension pots that could be transferred into Nest to reach the £10,000 minimum.

To choose the Nest Guided Retirement Fund, log into your Nest account and select it.

How does it work?

We divide the money in your pension pot into four funds - your Wallet, Safe, Vault and Later Life - each designed and invested differently to meet different needs throughout your retirement.

Scenario 1: Nadia

Nadia, an administrator from Bolton, joins the Nest Guided Retirement Fund at the age of 66 with £10,000 in her pot. £540 is put into her Nest Wallet for the year and she chooses to withdraw the full amount in one go.

A one-off amount of £1,000 is also tucked away in her Nest Safe. She keeps this aside for any essential house repairs. Of her remaining savings, £8,301 is invested in her Vault and every month £12 goes into her Later Life fund to give her a regular income when she reaches the age of 85.

Scenario 2: Amir

Amir, a technology support assistant from London, joins the Nest Guided Retirement Fund with £35,000 in his pot. He is 63 years old when he joins.

£1,799 is put into his Wallet for the year and he decides to take £437.50 out every three months.

He has £3,500 tucked away in his Safe, which he can dip into at any point. His remaining £29,700 is invested in his Vault to continue providing him with a steady stream of income throughout his retirement. When Amir reaches age 65, we move a small amount every month into his Later Life fund to give him a regular income when he's 85 and over.

Scenario 3: Sally

Sally, a therapist from Devon, was 67 years old in July 2025 when she joined the Nest Guided Retirement Fund. She has built up £35,000 in her savings pot, £1,925 goes into her wallet for the year and gives her just over £160 a month to spend. She decides to access the £3,500 in her Safe to replace her boiler before winter arrives. Of the remaining money in her pot, £28,476 is invested in her Vault while £42 per month is put aside for later life. As she joined the fund after 65 years old, she paid in a one-off ‘catch-up payment’ of £1,099 into her Later Life fund.

Sally has retained some clients and as she is earning over £10k per year, she continues to make pensions contributions. These contributions go into her Safe.

What are the benefits?

Sustainable income

We aim to make a stable and sustainable level of money available to you for you to withdraw until age 85. We leave a separate pot that can be used to purchase a guaranteed income for life. This should reduce the risk of your pot running out.

Easy access

You can make withdrawals online via the Nest website and have them paid directly to your bank account.

Flexibility

You can take your pot in full or choose a different retirement option at any time if you wish or your circumstances change.

Help to manage your income

We'll send you an annual statement showing you the value of your savings and the income available to you. We'll continue to manage your pot and invest your money with the aim of providing the same yearly income for you to withdraw.

Frequently asked questions