The Nest Pension Scheme
Here at Clarity, all of our employees will be auto-enrolled into the pension scheme operated by NEST.
NEST was set up by the government for auto enrolment but is run as a trust. NEST is run by its Trustee, NEST Corporation. This means that a trustee board oversees NEST and makes sure that it’s doing its job.
NEST Corporation, the Trustee that runs the NEST scheme, is a non-departmental public body. It’s accountable to Parliament through the Department for Work and Pensions but is generally independent of government in its day-to-day decisions. Being a public body means that they have no owners or shareholders. As a Trustee, they run the scheme in the interests of our members.
Your money in Nest
Nest will automatically put your money into a Nest Retirement Date Fund designed to have your money ready for you when you’re due to take it out. They assume you’ll take your pot when you reach 65 or your State Pension age, depending on when you were born. If you prefer, you can change the year you want to take your money out to an earlier or later date. This could be any time after the age of 55. You can also choose one of our other funds. They also have options to suit some personal beliefs or preferences about how we manage your money. Find out more at nestpensions.org.uk/nestretirementdatefunds
Nest keep costs as low as possible. Being an online scheme helps them to do that. To cover the costs of managing your money they take a small percentage of the money going into your pot. They also take a very small percentage off the value of your retirement pot over the year. See more about our charges at nestpensions.org.uk/nestcharges.
Contributing to your NEST retirement pot
We’ll make the contributions to your retirement pot every time we process a payment ot you. If you’re eligible, you’ll also get extra money from the government through tax relief. NEST uses the ‘relief at source’ method of claiming tax relief. This means that you make contributions from your pay after the deduction of tax− if you pay tax. If you are eligible for tax relief, NEST will claim this for you from HMRC and add it to your pot. This means that you make contributions from your pay after the deduction of tax− if you pay tax.
At the moment, basic rate tax relief is 20 per cent. So you’ll only need to pay 80p in every pound and NEST will claim another 20p from the government. If we don’t have your National Insurance number NEST won’t usually be able to claim basic rate tax relief on your behalf, so please make sure you’ve given it to us so you don’t miss out on any extra money.
If you pay tax at a higher rate, you may be able to get more tax relief on your contributions. You’ll need to claim this yourself by contacting HMRC at http://www.hmrc.gov.uk.
We calculate contributions based on your qualifying earnings. This means your annual earnings that fall between £6,032 and £46,350.
If you would like to know more about the Pension Scheme, please click here to download the Nest Guide to Pensions.