Nest offers a high-quality pension scheme for all. Our award-winning investment scheme is backed by the government, and our great service and value for money was given a 5-star rating by Defaqto, the UK’s most trusted source for financial product information.
We don’t want you to be worse off by leaving, so we’ve put together a 4-point checklist to help you find a scheme of similar quality.
Your 4-point checklist to finding a quality pension scheme
If you’ve found a new pension provider, run through this 4-point transfer checklist to make sure you’re making the right decision.
1. Are you getting value for money?
With over 11 million members, our size allows us to offer great value for money. You only pay one annual management fee of 0.3%.
Your new provider might have a great introductory offer, but will they still deliver great value one year from now? Remember, pensions are a marathon, not a sprint.
2. Are you transferring to a top-rated pension scheme?
Nest has an award-winning investment scheme and a 5-star Defaqto rating. Before you leave, make sure you’re moving to a scheme of similar quality.
3. Are your savings going into a pot for life?
Nest gives you a pot for life, which means your account details stay the same no matter how many times you change jobs. Because so many businesses choose Nest as their pension provider, it’s likely that you’ll return to us throughout your career. And each time you come back you’ll be paying into the same pot.
4. Does it sound too good to be true?
Are you 100% confident that you’re getting the deal you think you’re getting? Could it be too good to be true? Double-check before you transfer. Watch out for hidden charges buried in the small print.
Four things to ask before you transfer your pot
After running through the checklist, you’ll be ready to transfer or you might decide that Nest is the best place for your money after all.
If you’re still unsure, consider taking independent financial advice or contacting an independent organisation such asMoneyHelper.
Can you transfer money out of Nest pension?
There are some important things to note about transferring out of Nest:
- If you’re still making contributions to your pension pot, you can’t transfer out of Nest. If you’re thinking about stopping contributions so you can transfer out, be aware that you might miss out on tax relief and money from your employer.
- We won’t charge you for transferring out of Nest, but your other provider might charge you. Plus, if you transfer your money to an overseas pension scheme, you might also pay additional tax charges and an overseas transfer charge.
- To make sure we comply with regulations, we may ask you for additional information before you transfer out of Nest. And, in some cases, you might have to attend a scams awareness appointment withMoneyHelper.
- If you’re transferring your pot because you want to access your savings and you’re aged 55 or over, there are several ways you can withdraw your pot. Explore our range of retirement options and work out which one is right for you.
- Your transfer must meet legal requirements. By law, we can only allow transfers to a registered pension scheme or a qualifying recognised overseas pension scheme (QROPS). Your new provider should be able to confirm this for you. You’ll also need to check if they will accept a transfer from Nest and any fees involved.
FAQs
You can transfer your money out of Nest to another pension scheme at any time, after you've stopped contributing into your Nest retirement pot. For more information please see How do I stop contributions? Nest won't charge a fee or penalty if you transfer your money out.
Can you take money out of Nest account? ›
You can make one withdrawal a month. You can make withdrawals from your Nest Safe at any time if funds are available. If you want to take money from your Nest Vault, you'll either need to come out of the Nest Guided Retirement Fund and choose a different retirement option, or you can take all of your pot as cash.
Do you get money back if you opt out of Nest pension? ›
When a member opts out of NEST we'll refund any contributions we've received for them. We'll refund the contributions to the refund account you nominated for the payment source the member is connected to.
Can I take money out of my pension? ›
Take cash lump sums
You can take your whole pension pot as cash straight away if you want to, no matter what size it is. You can also take smaller sums as cash whenever you need to. 25% of your total pension pot will be tax-free. You'll pay tax on the rest as if it were income.
How do I take all of my money out of my Nest pension? ›
How do I start taking money out of Nest? The quickest and easiest way to start making withdrawals is by logging into your online account. Alternatively, you could call us on 0300 020 0090 to get started.
Can you take a lump sum out of a Nest pension? ›
You can choose to take all of your Nest pension pot in one lump sum. Usually the first 25% will be paid tax-free, and the remaining 75% will be taxed. If you take some, or all, of your pot as cash, this may push you into a higher tax bracket for that year.
Why has my Nest pension gone down? ›
You're automatically enrolled into a Nest Retirement Date Fund when you join. The value of investments may go down as well as up and the return of your investment is not guaranteed. Fluctuations in financial markets, currencies and other risks may cause fluctuations in the value of investments.
What happens to my Nest pension if I leave the country? ›
Nest is an online pension scheme so you can access your account even after you move abroad. It's easy to get the information you want by logging into your Nest account. Your account allows you to see exactly what's going into your retirement pot, manage your contributions and choose how and when to take your money out.
How long does a Nest payment take? ›
What is the waiting period for Nest pensions? ›
three months after an eligible worker's first day of employment, or. three months after a worker first becomes eligible for automatic enrolment.
If you're no longer working, you might be able to take your money out of Nest before age 55. It's possible you won't be able to take your whole retirement pot as cash because you may have to use some of it to get a retirement income.
How much will I get if I cash in my pension? ›
Cashing in your pension just means taking all your savings in one lump sum. You'll usually get the first 25% tax-free and pay income tax on the rest. You can use the cash in any way you choose but you'll need to think about how to make the money last, and there may be other considerations too.
What is the penalty for early withdrawal of pension? ›
If you make an early withdrawal from a traditional 401(k) retirement plan, you must pay a 10% penalty on the withdrawal. There are some exceptions to this rule, such as health expenses and life events.1 This tax is in place to encourage long-term participation in employer-sponsored retirement savings schemes.
Can you take money out of Nest pension before 55? ›
Nest Corporation
If you're no longer working, you might be able to take your money out of Nest before age 55. It's possible you won't be able to take your whole retirement pot as cash because you may have to use some of it to get a retirement income.
What happens if I close my Nest pension account? ›
Your account will be closed once we've paid all your money into your bank account or transferred it to your other provider. If you've opted out of saving with Nest, we will close your account and any contributions made will be refunded to your employer within 10 working days of your request.
How long does a pension transfer take? ›
This type of transfer usually takes 6-8 weeks, but can take longer depending on your investments and provider. You stay invested during the transfer, so could make gains and losses. Usually you cannot trade until the transfer completes.
Should I transfer my pension? ›
If you're part of a defined benefit (DB) pension, such as a 'final salary' scheme, transferring your pension to a personal plan is probably not in your best interest. These pensions not only give you a guaranteed income, but they also offer benefits to a spouse or partner once you die.
