Smart Pension vs Nest on cost: Nest takes 1.8% of contributions plus 0.3% a year; Smart's default was 0.30% to 0.40% plus £1.85 a month to June 2025.
This Smart Pension vs Nest comparison sets out how the two price, invest and pay out. Nest charges every member the same, while Smart's charges vary by employer and investment strategy, so a check of your own terms by an FCA-authorised adviser may help; this page's form requests that free call. The value of investments can fall as well as rise, and you may get back less than you put in.
Side by side: where Smart and Nest differ
| Point | Nest | Smart Pension |
|---|---|---|
| Member charges | 1.8% on each contribution plus 0.3% a year (page read 26 October 2026) | 0.30% to 0.40% a year plus £1.85 a month on the default pricing structure; varies by employer (trustee statement, year to 30 June 2025) |
| Employer cost | No fee to the employer | Flexible; a small monthly charge for some employers |
| Default fund | Retirement Date Fund | One of seven strategies, picked by the employer |
| Transfer out | No charge; contributions must have stopped | No charge; membership must have ended |
Smart Pension or Nest: which costs more?
Nest says its members pay "a contribution charge of 1.8% on each new contribution into your pot" and "an annual management charge (AMC) of 0.3% on the total value of your pot each year". Its own example is £18 on £1,000 paid in and £30 on a £10,000 pot, and it adds that "these two fees are all you pay". Transaction costs are not billed separately but built into investment returns.
Smart's charges page gives no percentages: its Total Expense Ratio "varies depending on the funds you are invested in", and it "may also charge a small monthly fee". The numbers sit in the trustee's statement for the year ending 30 June 2025, which says charging varies by employer and investment strategy and lists the default pricing structure at 0.30% to 0.40% including additional expenses, plus £1.85 per member per month. Over a year, £1.85 a month (£1.85 x 12) comes to £22.20. On a £10,000 pot that makes £30 to £40 plus £22.20, so £52.20 to £62.20 a year. Nest's two example amounts for the same pot and £1,000 of contributions add to £48.
That is an illustration, not a quote for you. Nest's contribution charge weighs on regular savers; Smart's flat monthly fee weighs on small pots, and Smart's charges page says it is not taken if combined savings are "£100 or less"; the trustee's statement for the year to June 2025 gave the threshold as £105, assessed monthly. Default funds used for auto-enrolment have a legal limit on charges under regulation 6 of SI 2015/879: 0.75% a year for a single charge structure, with separate limits for combination structures. Neither scheme charges a single percentage alone: Nest's has two parts and Smart's adds a monthly fee. Smart's trustee statement for the year to June 2025 says its member charges complied with the cap. For the full cost pages see Nest charges and Smart Pension fees, or pension charges generally.
Default funds: where your money goes if you choose nothing
Nest says that "when you join, you'll be put in a Nest Retirement Date Fund" matching the year of your State Pension age, with four phases that change as you age. Smart works differently: "Your employer will choose an investment strategy for you, unless you choose otherwise", from seven strategies, and members can switch at any time. Smart also offers a choice of 22 individual funds; Nest's other options include higher risk, ethical, Sharia and lower growth funds. More detail is in Nest fund options and Smart Pension funds. Ask about the strategy your employer picked on the call that the form here brings, free, from an adviser.
App, online account and access to your money
The Nest app is free to members, shows your balance and contribution history and lets you change your retirement date, but Nest says "all transfers out and withdrawals need to be started through our website or contact centre". Smart says more than 250,000 people use its app to check balances, track contributions and transfer other pensions in.
On taking money out, Smart points to Smart Retire, which it says lets members keep saving while withdrawing money. If a pot has not been taken by the Nest retirement date, Nest moves it into its Guided Retirement Fund when it holds more than £10,000, or the Ready to Retire Fund when it holds less. See taking money from Nest and when you can take a pension.
Transferring: rules for leaving Smart Pension or Nest
Nest says "you can transfer to another pension scheme at any time after you've stopped contributing" and usually processes a completed request in 5 to 10 working days, with no charge from Nest. Smart says "you need to cease membership in the scheme before you can transfer your pension savings out", also free, though other providers may charge. Smart accepts transfers in only from registered UK schemes and not from benefits already crystallised. Steps are in how to transfer a Nest pension and how to transfer a pension; check any guarantees first, because Smart warns that benefits, guarantees or features can be lost on a transfer.
Small employers: what Smart Pension and Nest ask of you
Nest says "We don't charge you any fees to use Nest", though payroll software or a third-party administrator may cost you. Smart says "Our charges are flexible and depend on" business size, existing assets moved over and whether you sign up directly or through an intermediary, with "a small monthly charge" for new employers signing directly or existing employers under a certain size. Smart publishes a salary sacrifice guide for employers, and Nest a salary sacrifice toolkit. The wider rules are in auto-enrolment.
Who each may suit
Nest may suit an employer wanting no scheme fee and a member who likes one simple pair of charges. Smart may suit someone wanting a wide fund range or flexible drawdown in the same account, if the monthly fee is acceptable at their pot size. These are points to weigh, not a recommendation; is Nest good and is Smart Pension good go further.
Salary sacrifice, old pots and other providers
What do people mean by smart vs non smart pension?
Smart is the provider's name, not a type of pension. Smart's own page describes it as "a defined contribution master trust". Your employer can tell you which scheme you are in.
Where do Aviva, Scottish Widows, a SIPP or PensionBee fit?
Each prices its pension differently and has its own page: Scottish Widows against Smart, Aviva, Standard Life, Royal London, The People's Pension, what a SIPP is and PensionBee fees.
Is Smart Pension or Nest better for salary sacrifice?
Smart says an employer must find out whether its payroll software and the provider's systems support net pay or relief at source. Whether salary sacrifice is offered is the employer's decision.
Do charges carry on once contributions stop?
Nest says its charges are the same for all members, whether they are still contributing or not. Smart's trustee says its charging varies by employer and investment strategy, and its statement for the year to June 2025 says no monthly flat fee is taken from an account worth £105 or less. Workplace pension providers covers who picks the scheme.
Before you decide between them
Your payslip and pension letter name your scheme; the charges are in your login. Smart or Nest, set against pots from earlier jobs, makes a good topic for a free ring-back; this page's enquiry form requests one from an FCA-authorised adviser. Free guidance also comes from Pension Wise.
Sources, all read in October 2026: Nest's and Smart Pension's own member, employer and help centre pages; the Smart Pension Master Trust Chair's statement covering the year ended 30 June 2025; regulation 6 of SI 2015/879.