NEST contribution charges eat into member pots

clock

The National Employment Savings Trust (NEST) has ended its first ten months in operation with less money in its fund accounts than were made in initial contributions, after one member died and contribution charges ate into member pots.

However, its investment head has said the funds are delivering their objectives and performing "just how we wanted". NEST has been trialling its systems with the help of volunteer employers and 850 members before the introduction of auto-enrolment later this year. Between July 2011 and March this year, NEST annual reports showed that the government-backed fund received £481,250 in contributions and made £8,514 net return on its investments. One member died, which triggered death benefits of £2,016. The annual management charge and 1.8% charge on contributions ate into memberpots...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

RBC Brewin Dolphin adds to Voyager range with passive funds

RBC Brewin Dolphin adds to Voyager range with passive funds

With six risk options

Patrick Brusnahan
clock 27 April 2026 • 1 min read
From 'passive versus active' to 'the best of both worlds'

From 'passive versus active' to 'the best of both worlds'

Factoring active managers' best ideas into systematic models

Lisa Wang
clock 27 April 2026 • 4 min read
AJ Bell posts record rise in platform flows as AUA hits £108.7bn

AJ Bell posts record rise in platform flows as AUA hits £108.7bn

Net flows up 42%

Cristian Angeloni
clock 23 April 2026 • 2 min read