How to explain NEST charges to clients

NEST’s chief investment officer Mark Fawcett explains how the savings vehicle’s charging structure works

clock

NEST's chief investment officer Mark Fawcett explains how the savings vehicle's charging structure works.

Even with auto-enrolment little more than 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, NEST 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 us assume someone is contributing around £1,000 to...

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 uncategorised

Brooks Macdonald becomes BAFTA wealth management partner

Brooks Macdonald becomes BAFTA wealth management partner

Partnership starts in 2026

Jen Frost
clock 08 December 2025 • 1 min read
As Reeves scrabbles for Budget funds, is she missing a Covid furlough trick?

As Reeves scrabbles for Budget funds, is she missing a Covid furlough trick?

Creativity key as chancellor faces tough tax and spending choices

Jen Frost
clock 21 November 2025 • 8 min read
Titan Wealth inks Harlequins partnership

Titan Wealth inks Harlequins partnership

Becomes wealth management and women’s partner

Jen Frost
clock 03 October 2025 • 2 min read