Continued growth and investment in the UK

Nest has today published its 2023/24 annual report and accounts for Nest Corporation , to add to the Nest pension scheme report and accounts published at the end of July. The report highlights Nest’s continued growth, bolstered by the persistency of pension saving, and its investment in the UK economy.

Commenting on the reports, Ian Cornelius, Nest’s Chief Executive Officer, said:
“Nest was established to give ordinary working people somewhere extraordinary to save for their retirement. Offering the kind of sophisticated investment strategy that had previously been reserved for the wealthy.

“We continue to build on these strong foundations, investing in new products, services, and data platforms to better understand and support our members, through data-driven development and delivery.

“We’ve also put in place partnerships to drive our investment in the UK - in the services our members use, the buildings they work in, the societies they live in. We’re proud of this and our investment in the UK will only increase.”

Brendan McCafferty, Chair of Nest Corporation, said:
“This report covers a period of time where people were having to make difficult decisions about their savings, with the cost-of-living and inflation putting pressure on household finances. 

“Despite this, our members stayed with us, with only 9% opting out. This persistency of saving offers peace of mind to members as they build a foundation of financial security on which to retire.

“At Nest, our members needs drive everything we do. The passion of the team at Nest Corporation and their dedicated hard work shapes the future of the pensions industry and I want to acknowledge their skill and dedication. 

“As Nest continues to grow, we will remain singularly focused on our members’ best interests, delivering a pension they will continue to have good reason to trust.”

Nest has continued to grow during 2023/24. The Scheme’s membership grew from 12 million as at March 2023 to 13 million at March 2024. Growth in membership alongside the persistency of pension savings enabled member contributions to both continue to grow and to out-perform expectations. 

With around 99% of its 13 million members remaining in its default investment strategy, Nest recognises the importance of using its scale to help deliver for its members strong, consistent investment returns over the long-term.

The 2040 Nest Retirement Date Fund, which currently represents the growth phase of the default strategy, has delivered annualised returns (net of the annual management charge) of 8.3%. 

Nest invests at scale in the UK, with more than a fifth of its assets under management in UK investments. As at end of March 2024, Nest had around £8 billion in UK assets and anticipates having £20 billion invested in the UK by the end of the decade.

Information contained within the reports include (as of 31 March 2024):

• Nest was managing £40.6 billion on behalf of 13 million members and 1.1 million employers. This is compared to £29.6 billion on behalf of 12 million members and 1.1 million employers for the same time last year.
• Each month on average Nest received £605 million in new contributions for its members’ pots this year, compared with £543 million last year.
• 98% of employers using Nest have fewer than 50 employees.
• More than 6,000 new employers joined Nest, on average, each month.
• 51% of the Nest workforce are women, 48% of director-level roles and higher are held by women, and 30% of our workforce are from a Black, Asian, or another ethnic minority community.
• As of 31 March 2024, Nest had £19.9 billion or 49% invested in its climate-aware equities strategies, growing from £352 million or 12.6% invested in 2018. Nest’s climate-aware strategies help to manage climate-related risk by reducing investment in the biggest greenhouse gas and carbon emitters and investing more in green technology like solar and wind farms.
• The Nest 2040 Retirement Date Fund has achieved ten-year rolling annualised investment return of 8.3 per cent (net of Nest’s annual management charge)