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NEST Pension Calculator

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.

Your Income

£per year (pre-tax)
£per year (pre-tax)
Income from Bonuses, Commission, Overtime, Capital Gains, Investments, etc.
Your Contributions
%
Employer's Contributions
%
Try adjusting your contributions to see how it affects everything.
Tax Residency
England/NI/Wales
State Pension Age
68 (Everyone aged 46 and under)
To get an accurate state pension age, use the gov.uk calculator
Plan 1
Outstanding Balance
£

Your taxes (2024/25)

Various assumptions apply
The primary assumptions are that you are a FTE and that standard tax rates for 2024/25 apply to you. For fewer limitations, try Saving Tool Advanced.
YearMonthWeek
Gross Income£28,500£2,375£548
Pension Contributions£0£0£0
Employer Pension Contributions£0£0£0
Taxable Income£28,500£2,375£548
Personal allowance£12,570--
National Insurance£1,273£106£24
Income Tax£3,186£266£61
Take Home Pay£24,041£2,003£462
HMRC Tax rates and rules last updated 03/12/2024

Your Monthly Expenses

Essential outgoings

Things you have to pay for
£
£
£
£
£
£

Non-essential outgoings

Things you choose to pay for
£

Your Monthly Outgoings

Your Plan

The earliest you can retire with your workplace pension is usually 55. You won't get your state pension until your mid or late 60s, depending on your current age. Tip: try playing around with your target retirement age to see how things change.
£
The total balance of all your existing pension pots.
£
The total balance of any existing ISA Savings accounts (GIAs are not currently supported)

Projected Pension

Wealth & Financial Independence More Info

%
%
%
Financial independence means having enough saved that your expenses will be covered for the rest of your life.

Projected Wealth

Calculations
  • FI Target = Annual outgoings (£17,472) * Years needed for 4.00% SWR (25.00) = £436,800
  • Invested annual pension = £0
  • Invested annual surplus = £2,201
  • 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

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 TypePercentage of SalaryWho Pays?
Employee Contribution4%Employee (You)
Employer Contribution3%Your Employer
Tax Relief1%Government
Total Contribution8%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 TypeCostDetails
Annual Management Fee0.3%Charged on the total value of your pension pot annually.
Contribution Charge1.8%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. The government adds 20% of what you contribute into your pension pot, 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.