NEST Pension Calculator 2026/27
Estimate your take-home pay with NEST-style workplace pension contributions and then explore the detailed NEST guide below.
Pension, region, student loan, State Pension age
Explore your finances
Model your expenses, project your wealth, and find your path to financial independence, using the pay figures above.
Financial independence
- In today's money, you'll have at least £21,600 / year (£1,800 / month) when you stop working at 66 - just from your savings
- In real terms, that's £38,340 / year (£3,195 / month)
- That means all your outgoings are covered without having to make any further contributions!
- You may be able to retire earlier - try adjusting the retirement age field
Where your £3,125 a month goes
- Essentials£1,750
- Everything else£500
- Tax and NI£547
- Pension£125
- Left to invest in your ISA£203
Projected wealth
Estimated income over 50 years, in today's money, with a 5% annual return and 0.35% yearly platform and fund fees.
Projected pension
Your pension pot over 31 years at three growth rates, after 0.35% fees, in today's money.
Calculations
- FI Target = Annual outgoings (£21,600) * Years needed for 4.00% SWR (25.00) = £540,000
- Invested annual pension = £3,000
- Invested annual surplus = £2,441
- Inflation of 2.5% / year
- Assumes New State Pension, payments increasing with inflation (2.5% / year)
- Assumes student loans last 30 years max
- Assumes a flex-drawdown pension for illustration purposes
- Assumes you draw down pension up to the higher rate bracket (£50,270), then draw down your S&S ISA
- Pension lump sums are not included
The NEST (National Employment Savings Trust) Pension is a government-backed workplace pension scheme designed to help employees save for retirement. Set up as part of the UK's auto-enrolment initiative, Nest ensures that millions of workers across the country have access to a simple, low-cost pension plan.
Typically, workers get a 3% pension contribution from their employer, contribute 4% themselves and get an additional 1% in tax relief, totalling 8%. In the calculator below, you can use 4% / 4% pension contributions to get an idea of how much your NEST pension contributions will be.
How do I know if I'm enrolled?
If you are employed and eligible for auto-enrolment, your employer may already be making contributions to Nest on your behalf. You can check if you're enrolled in Nest by visiting Nest Pension's website. There, you can log in to your account to manage your contributions and track your savings.
As an employee, you contribute at least 4% of your salary to the Nest Pension. Your employer will typically match 3%, and an additional 1% is added by the government in the form of tax relief. This means that the total contribution to your Nest Pension pot will usually be 8% of your qualifying earnings.
Why Choose a Nest Pension?
The Nest Pension is specifically designed to be accessible and flexible for all employees, regardless of their salary or industry. Some of the key benefits include:
- Low management fees: Nest charges a 0.3% annual management fee, plus a 1.8% charge on new contributions, ensuring your savings grow while keeping costs low.
- Flexible contributions: You can adjust your contributions, and if you're self-employed, you can still join and save into a Nest Pension.
- Government-backed: Nest is supported by the UK government, giving it credibility and ensuring your savings are protected.
For employees, particularly those who move between jobs frequently, Nest offers the flexibility to keep your pension in one place as you change employers. Your Nest account stays with you throughout your career.
Contribution Breakdown for Employees
Here's a breakdown of how typical Nest Pension contributions work based on current auto-enrolment guidelines:
| Contribution Type | Percentage of Salary | Who Pays? |
|---|---|---|
| Employee Contribution | 4% | Employee (You) |
| Employer Contribution | 3% | Your Employer |
| Tax Relief | 1% | Government |
| Total Contribution | 8% | Combined (Pension Pot) |
Fees and Costs
The Nest Pension is designed to be cost-effective, helping you maximize your retirement savings. Here's a look at the fees you will pay with Nest:
| Fee Type | Cost | Details |
|---|---|---|
| Annual Management Fee | 0.3% | Charged on the total value of your pension pot annually. |
| Contribution Charge | 1.8% | Applied to each new contribution you make. |
For example, if you contribute £100 to your Nest Pension, £1.80 would be taken as a contribution charge, leaving £98.20 to be invested. This, combined with the low annual management fee, ensures that most of your money stays invested and working towards your retirement goals.
Tax Benefits of the Nest Pension
When you save into a Nest Pension, you benefit from tax relief on your contributions. Basic-rate relief is 20% of the gross contribution, which means the government adds 25% on top of what you pay in from your take-home pay, up to certain limits. For example, if you contribute £80, the government will top it up with an additional £20, bringing the total contribution to £100.
If you're a higher-rate taxpayer, you can claim additional tax relief through your self-assessment tax return.
How to Get Started
If you're already enrolled in a Nest Pension, you can log in to Nest's online portal to manage your account, track your contributions, and adjust your retirement goals. If you're not yet enrolled, speak with your employer to find out more about their workplace pension scheme and whether Nest is an option for you.