Nest Pension (Scandal?)

Saw this on UKPF / Moneybox and Meaningful Money so thought I’d check it out.

If you prefer the podcast skip to 15:10

About Nest

Nest has been set up by the government especially for auto enrolment.

What is Nest

We’re here to make sure that every employer has access to a workplace pension scheme that meets the requirements of the new pension rules.

But we do more than just meet the regulatory minimum. Nest comes packed with the sort of high-quality features you need, whether you’re saving with us, using us for your workers or helping your employer clients.

Turns out between the ages of 22 & 27 Nest automatically enrol its users onto the lowest risk portfolio in a bit to merely try and conserve money and not

“Scare them off”

90% of users are on this default allocation, even if you’ve switched to the socially responsible fund you will still be on this 5 year bed in.

If you’re within that age bracket, make sure you take a look at your pension and understand the effects of missing out on those first few years and what it means for the total figure on your pension at retirement.