Nest now has £13bn invested in the UK economy, according its latest annual report which was laid before Parliament today.
These figures show in total Nest now has assets under management of £62.9bn and runs pension for more than 14m members.
This master trust looks set to continue on a strong growth trajectory, with its size meaning it now receives an average of £713m in new contributions each month.
Nest says that this strong growth and good investment returns meant that it delivered a profit of £40.5m for the 2024/2025 year. It said will be reinvested to further strengthen its long-term sustainability.
In terms of performance, Nest’s 2046 Retirement Date Fund, the default representing members in the growth phase, has delivered 10-year annualised returns of 8.5 per cent. This is ahead of Nest’s long-term objective, of achieving returns at least 3 percentage points above inflation. Over the same period, inflation averaged 3.5 per cent, meaning the target return was at least 6.5 per cent.
Nest recently announced that it was further extending its investments into private markets with a new £200m venture capital allocation with Schroders Capital which includes direct investment into UK venture opportunities, to help British-based start-ups expand and scale.
Nest CEO Ian Cornelius said Nest is focused on using its scale to improve outcomes for low-to-moderate income savers while building confidence and engagement with pensions.
He adds: “One in three of the UK’s working population has a pension pot with Nest, and that’s a responsibility we take very seriously. I am proud of the progress we have made over the past year, evolving and strengthening the services we provide to both our members and employers.
“Behind the scenes we’ve been taking important steps to develop our retirement proposition, including plans to introduce flexi-access drawdown and create new solutions that give members greater certainty in later life.
“As the pensions landscape evolves, Nest will be at the forefront of progress, building a scheme fit for the future, delivering for our members to and through retirement.”
Brendan McCafferty, Chair of Nest Corporation adds: “Over the past year Nest has continued to grow, deliver strong long-term returns and invest in the services our members and employers need for the future.
“Nest exists to help millions of everyday savers achieve better retirement outcomes. Our scale gives us access to investment opportunities that can support strong long-term returns while also contributing to the UK economy. We now have more than £13bn of our members’ savings are invested in UK assets, helping finance businesses, infrastructure and growth across the country.
“This year, our flagship fund delivered returns ahead of our long-term target, showing the value of a patient, diversified investment approach. We’ll continue to look for opportunities, including in private markets and UK assets, that can help deliver for members, now and into the future.”
