Employer > Automatic enrolment > Key facts > What is NEST?
What is NEST?
You may have heard about NEST, the National Employment Savings Trust.
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NEST is a pension scheme that you can use to meet your employer duties and it’s primarily aimed at low to medium earners and small employers that don’t have access to a company pension scheme.
It's designed to be a simple, low cost option and there are certain restrictions that apply.
- There is currently a general ban on transfers in or out.
- There is currently an upper contribution limit.
- There are limited options at retirement which will result in less choice and flexibility for workers.
- There are limited investment options. Workers will be automatically invested in a default fund based on time to retirement. This will not take into account an individual’s attitude to risk.
- The death benefits paid from NEST are potentially subject to inheritance tax.
Published April 2013
I4W0995/1
