Nest Lower Growth Fund

This fund may be right for you if your main goal is to protect how much you’ve got saved into your pot and you’re not concerned about having your savings grow in line with the rising costs of living.

How it works

Most pension funds are invested with the aim of growing your money faster than the rising costs of living, also known as inflation. This is done so your money has the same kind of purchasing power in the future. However, the Nest Lower Growth Fund is an exception. It aims to keep the original value of your money rather than adding to it.  

In fact, as this fund takes very little risk, your money is unlikely to grow quickly enough to beat the rising costs of living over longer periods of time, and you might not be able to buy as much with your pension savings in the future.

Where does my money go?

All of your pension savings will be put into bonds. Bonds are sold by governments and businesses when they raise money. Buying them means you’re loaning money to the organisation in exchange for small regular payments, and the promise of being paid back in full on a set date. They’re a low risk investment, making them ideal for this fund.

Use our investment information tool to find out which companies your money is invested in through your Nest pension.

You can find out more detail on where this fund is invested and how it’s performing in our latest quarterly investment report.

Nest pension fund performance 

Choosing this fund means you’ll be protecting the value of your pot from falling at the expense of long-term growth. Protecting your pot should be weighed against how long you plan on keeping your money here, the lifestyle you want to enjoy when you stop working and the budget you’ll need to achieve that, and the rising costs of living over that time.

For example, a pension pot worth £1,000 today might grow to around £1,100 over 10 years. But because of the rising costs of living, that’s likely to only be worth around £900 in today’s money. So even though your pot hasn’t lost its value, it’s lost its spending power.

If you plan on keeping your pension with us for a while, it’s worth considering whether this is the right fund for you.

Want to see how our Nest funds are performing? Check out all the factors involved.

How do I switch to the Nest Lower Growth Fund?

Switching into the Nest Lower Growth Fund is quick and simple through your online account. Simply log in to get started. 

If you’re not sure where to invest your pension savings, it may be worth exploring MoneyHelper. It offers free, independent guidance on a range of money matters.

Are there different types of investment fund?

You can choose to put your money in any of our five pension funds. All our funds are invested with a view to how people and the planet are treated. We believe investing responsibly creates more money for your pot as well as improving the world we all live in.