Nest is now one of the largest pension providers in the country with almost £50bn in assets under management.
In its annual report for 2024-25, the organisation also revealed it has turned a “modest” profit for the first time since it was established in 2010 to help deliver auto-enrolment. This means all its operating costs were met by the charges paid by members.
Nest made £11.9m during the financial year, and has begun repaying the £1.2bn in financing it has received from the Department for Work and Pensions to fund its establishment and operations. It aims to pay back the loan in full by 2038.
The master trust’s membership grew from 13 million to 13.8 million over the 12 months to the end of March 2025, with active members paying in £663m each month. It had £49.7bn in assets in total at the end of the financial year.
Brendan McCafferty, chair of Nest Corporation, Nest’s provider company, said the organisation was “on its way to becoming a large-scale, leading pension scheme, with world-class investment outcomes for UK workers, while benefiting UK society”.
He added: “Nest is not just a pension provider; we aim to influence the industry and advocate for better outcomes for all savers.
“As we grow, we will remain focused on our purpose of building financial peace of mind for all, always acting in members’ best interests and building a pension they can continue to trust.”
Where does Nest rank in the UK’s largest pension schemes?
At £49.7bn, Nest is one of the biggest pension funds in the country. It is bigger than all but one private sector defined benefit pension scheme (the £74.8bn Universities Superannuation Scheme), and is the biggest authorised master trust by assets.
According to its own projections, Nest will reach £100bn “by the end of the next decade”.
The next largest master trust is The People’s Pension, which has approximately £32bn in assets under management and 6.8 million members.
Investment returns beat target
The annual report for Nest showed that its main growth-phase fund, the 2045 Nest Retirement Date Fund, gained 9.9% a year over the past five years.
This was significantly ahead of its target of inflation plus three percentage points, which for the five year period in question amounted to 7.7% a year.
Over 10 years, the fund has gained an average of 7.2% a year net of charges.
“In a year marked by economic volatility and inflationary pressures, our investment approach has remained resilient,” McCafferty said.
“We have consistently delivered healthy, stable returns while thoughtfully managing investment risk for our diverse membership. Our message to members is simple: stay the course. Long-term saving, particularly through turbulent times, leads to growth and greater financial security.”
Investing in the UK
Ian Cornelius, Nest’s chief executive officer, highlighted the master trust’s investment in UK assets, amid pressure from government on pension schemes to increase domestic allocations.
“Our aspiration to grow our private market allocations reflects our belief in the long-term value these investments can deliver.”
Ian Cornelius, Nest
“As the UK’s largest workplace pension provider, serving over 13m members, we continue to influence and advocate for better outcomes for low to middle-income savers,” Cornelius said.
“Our aspiration to grow our private market allocations reflects our belief in the long-term value these investments can deliver. We are proud to be signatories to both Mansion House [Compact and Accord], reinforcing our commitment to investing in the UK economy and supporting the communities where our members live and work.”
More than a fifth of Nest’s investments are in the UK, valued at £10.6bn at the end of March.
The annual report showed the master trust was invested in 42 clean energy and infrastructure assets, three housing investments, and six private companies in “priority sectors”.
It has also substantially increased the size of its “climate-aware” equity strategies, from £12.6bn in 2022 to £22.8bn in 2025.
