Blog: How to explain NEST charges to clients

Even with auto-enrolment just over a year away, NEST continues to have to bust myths about what it is. This is understandable, but for advisers one subject that needs particular attention is how NEST charges its members. NEST charges 0.3% annually on members' total funds under management, plus a charge on contributions of 1.8% as contributions are made. Over a saving lifetime, our charges work out as broadly equivalent to 0.5% annual management charge (AMC). So how does 1.8 plus 0.3 equal 0.5%? To keep things simple, let's assume that someone is contributing around £1,000 to th...