NEST contribution charges eat into member pots

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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...

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