Industry divided on NEST charges

The expected charging structure for the National Employment Savings Trust (NEST) has received a mixed reaction.

The government said it anticipated NEST would charge a 0.3% annual management charge over the longer term - but said their would also be an additional charge on contributions of about 2% to meet the costs of establishing the scheme. It said it was "comparable to low charges currently being paid by members of large occupational schemes". Buck Consultants head of technical services, Kevin LeGrand, says: "It is pretty much last chance saloon in terms of the credibility of the government's pensions policy to get auto-enrolment and NEST up and running and to get confidence back into saving...

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 Pensions

Many savers fear smaller pension pots after salary sacrifice reforms

Many savers fear smaller pension pots after salary sacrifice reforms

Two-thirds think changes will mean paying more National Insurance

Jasmine Urquhart
clock 08 January 2026 • 2 min read
Evolution of pension recommendations and how 2026 may influence change

Evolution of pension recommendations and how 2026 may influence change

Next year could be the start of something big

Richard Hulbert
clock 06 January 2026 • 4 min read
Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read