Within investing, the higher the risk, the higher your potential reward – but the higher the chance you’ll end up with less than you put in. As with all investments, it’s a carefully calculated risk. The Nest Higher Risk Fund does exactly what it says on the tin. It was created for members who want to try and grow their money more quickly than our Nest Retirement Date Funds, and are prepared to accept a higher level of risk to achieve this.
You might consider this fund if you have safe, alternative forms of retirement income, if you’re confident in the current financial markets, or if you’re a younger saver and have plenty of time to ride out the highs and lows of your investments.
How it works
The Nest Higher Risk Fund aims to get a higher return on your investments than the Nest Retirement Date Funds. We do this by putting more of your money in company shares as a proportion of your overall investments. Company shares tend to rise and fall more dramatically than other markets, meaning there’s a bigger chance you’ll make money – but also less certainty that you’ll keep the gains you’ve made.
If you choose the Nest Higher Risk Fund, you’ll need to select one of the following options:
Lifestyled: Your pot is moved out of the Nest Higher Risk Fund into a Nest Retirement Date Fund ten years before your Nest retirement date. This helps protect it from the possibility of big falls in value close to retirement. There’s a chance you’ll miss out on big rises, but you’re less likely to lose some of the money you’ve built up. Your Nest retirement date is automatically set to your State Pension age when you join, but you can easily update it to match your life plans.
Non-lifestyled: You keep your pot in the Nest Higher Risk Fund regardless of your age unless and until you choose to move your money to an alternative fund choice, or transfer or withdraw your funds.
Taking more investment risk means you’re more likely to make money, but you’ll be less sure of how much you’ll end up with. As with all investments, there’s a chance that you could get more or less than you put in.
Where does my money go?
The Nest Higher Risk Fund puts your money into company shares, property, bonds, and commodities, which are goods like gold, coffee and wheat. Investing in all these different markets means the fund is slightly lower risk than putting all of your savings on the stock market, but has the potential to grow more quickly than in our Nest Retirement Date Funds.
You can find out more detail on where this fund is invested and how it’s performing in our latest quarterly investment report.
We've partnered with Tumelo, an online investment tool, so you can find out which companies your money is invested in.
Nest pension fund performance
There’s a reason you have a pension rather than putting your hard-earned money straight into a savings account. We invest it, which is how we can grow your money more than if you kept it in a bank.
Our aim is to grow your fund more than the Nest Retirement Date Funds, which aim to beat the rising costs of living and add an extra 3% on top – and that’s after taking into account all charges and fees. After all, the money you save today should buy you the same standard of life in the future.
Learn the difference between pot performance and fund performance, and see how Nest’s funds are performing.
How do I switch to the Nest Higher Risk Fund?
Switching into the Nest Higher Risk Fund is quick and simple through your online account. Simply log in to get started.
If you’re not sure where to invest your pension savings, it may be worth exploring MoneyHelper. It offers free, independent guidance on a range of money matters.
Are there different types of investment fund?
You can choose to put your money in any of our five pension funds. All our funds are invested with a view to how people and the planet are treated. We believe investing responsibly creates more money for your pot as well as improving the world we all live in.
