Nest pension advice does not come from Nest, which says it can't give financial advice; free Pension Wise guidance and a regulated adviser fill the gap.
Wondering where to get advice about your Nest pension? Not from Nest itself, which is barred from giving it. Free guidance is available from Pension Wise if you are 50 or over, and personal advice comes from an adviser you pay. Anyone wanting a human voice first can use this page's form: it leads to a free phone chat on Nest with an FCA-authorised adviser.
Why Nest stops at information, not advice
Nest's guidance page is plain about it: "As a pension provider, we’re not allowed to provide you with financial advice. However, there are several free resources that could be useful." The page that covers your choices at retirement repeats the point: "We can’t provide you with advice about which option is right for you."
What Nest does provide is information about its own pension: its member pages, an online account and a help centre. Those explain how the scheme works. They stop short of saying which choice is right for you, and that line is what separates information from advice. If your question is about the scheme itself, such as whether Nest is a good pension, the answer is there.
For the mechanics of each step, see taking money out of a Nest pension and transferring a Nest pension.
When regulated advice is worth considering for a Nest pot
A regulated adviser, in MoneyHelper's words, "can tell you what’s best for you and your money, including when and how to access your pension." Five Nest decisions where that kind of advice can matter:
- Staying in Nest's Guided Retirement Fund. This in-house retirement option needs no move, but Nest says it can't advise on whether the fund is right for you; it offers a factsheet instead.
- Buying an annuity or using drawdown. Nest sells neither an annuity nor flexi-access drawdown, so either means moving the pot to another provider. Its retirement page warns that, normally, an annuity cannot be changed once bought, and that charges, fund choices and flexibility vary between drawdown providers. Background: pension annuities and pension drawdown.
- Combining pots. Pots from different jobs may be combined into one by transfer. What each old pot carries with it is worth knowing first; moving a pension into Nest looks at that side.
- Moving the pot out of Nest. Nest says you cannot transfer out while contributions are still going in, and suggests asking an expert before you move. A transfer may also bring a scams check, covered below. Where the law requires advice before a transfer is explained in when advice is required before a transfer.
- Working out a retirement income overall. Nest's own page puts it this way: "It’s a good idea to seek professional guidance or advice before making your decision." Your choices are laid out in your options at retirement.
These choices depend on your other pensions, savings, health and State Pension. Your Nest pot is rarely the whole picture, so an FCA-authorised adviser looking across all of it may help; this page's form sets up that call at no charge.
Free guidance to use before paying anyone
Nest points members to Pension Wise, a service from MoneyHelper. Its own description: "A free Pension Wise appointment explains the options for taking money from your defined contribution pension. It’s impartial and backed by government." A Nest pot is defined contribution, so it counts.
Eligibility is a UK-based defined contribution pension plus an age of 50 or over. A few younger people qualify too, for instance after inheriting someone else's pension or retiring early because of poor health. Pot size is irrelevant: "It doesn’t matter how much your pension is worth." MoneyHelper describes free guidance as a general overview of your options, leaving you to decide how to act on it. How an appointment runs is in what Pension Wise is, and other no-cost routes are in free pension advice.
Not eligible? MoneyHelper says it can still help people who do not qualify, through its guides, tools and helpline.
How to find an adviser for your Nest pension, and who pays
Nest says "MoneyHelper can direct you to a range of independent advisers", and adds: "Nest won’t be responsible for any fees you may be charged for this advice." So the fee is a matter between you and the adviser.
MoneyHelper says to use only a firm regulated by the Financial Conduct Authority, and to confirm that on the FCA's Financial Services Register. Its page lists VouchedFor and Unbiased among the search directories, plus two professional-body lists. Three things worth doing:
- Ask whether the adviser is independent or restricted.
- Get more than one quote, because costs and the way you are charged vary.
- Ask for the cost in advance. MoneyHelper says you "must be told how much the advice will cost before you commit."
Typical fees are in pension advice cost, and a search guide is in finding a pension adviser. Whether the fee pays back is argued in are pension advisors worth it.
Moving the pot is a separate cost question. Nest makes no charge to transfer a pot out, though the provider receiving it may deduct one.
Scam warnings when you go looking for help
Scammers pose as helpers. The FCA's pension scams page warns: "If you’re contacted unexpectedly and offered a free pension review, it’s likely to be a scam. Professional advice on pensions is not free." It also says "Never take advice from the company that contacted you", and that an unexpected pension call is best answered by hanging up. A call you requested is different, and MoneyHelper counts a free first meeting among the signs of a good retirement adviser.
Nest has its own safeguard. It reviews each transfer for possible scam risk, and the law requires providers to refer members to a Pension Safeguarding Guidance appointment, a free MoneyHelper service, for certain types of transfer. If you are asked to book one, Nest says "it's mandatory to do so and provide us with evidence that you've attended it." The warning signs are listed in how pension scams work, and where to tell someone is in reporting a pension scam.
Nest pension advice: your questions
Where does Nest itself suggest looking for an adviser?
Its retirement pages point to MoneyHelper's adviser directories and name unbiased.co.uk for independent financial advisers.
What happens if I stop paying into Nest so I can move the pot?
Nest only lets a pot transfer out once contributions have stopped, and it warns that stopping them may mean missing out on tax relief and your employer's contributions. That trade-off is worth weighing before you act.
Will Nest cover an adviser's bill?
No. Nest says it won't be responsible for any fees you are charged for advice. Paying a fee out of the Nest pot itself is a separate matter; an FCA-authorised adviser can shed light on it during the call that this page's form arranges free.
Will Nest tell me if I need a safeguarding appointment?
Yes. If Nest decides your transfer needs one, it sends booking instructions to your Nest Messages or by post. The appointment usually lasts 30 minutes, and Nest says it can't legally complete the transfer without evidence that you attended.