Members of UK pension scheme NEST have expressed a desire for the pension fund to back investments that create wider benefits for society and the economy, but not at the expense of diversification and financial discipline.
In a new report, the £60bn (€68.9bn) defined contribution master trust today set out the outcomes of its first deliberative member assembly, convened to answer a core question: “How should Nest invest in the best interests of its members?”.
Based on discussions among 52 randomly selected members, the report contains 37 recommendations for NEST’s investment strategy and the future involvement of members. The selection process was guided by stratification according to key characteristics such as age, gender, ethnicity, income, pot size, and attitudes to risk and attitudes to economy / environment.
The fund has said it will respond to the recommendations later this year, describing how they are informing its Statement of Investment Principles (SIP).
NEST chief executive officer Ian Cornelius said the assembly aimed to strengthen the connection between investment decisions and the priorities of its members.
“Pension schemes must not only act in members’ best interests but stand behind those decisions, and demonstrate how they reflect members’ needs, preferences and values,” he said.
He said the member assembly report showed that “members want their pension savings to work hard for their future, but they also want to understand more about how decisions are made and how their voices can be heard”.
“Our members’ feedback and enthusiasm for engagement will inspire us to further focus on building our members’ understanding of their pension and the choices available to them.”
NEST’s member assembly initiative comes after earlier this year to establish the values of NEST savers, and whether they could be better represented in investment strategies and decisions.
In 2024, Pensioenfonds Detailhandel, the Dutch pension fund for retail workers, selected nearly 50 members to participate in a ‘mini public’, through which they were taught about their chosen sustainability and finance topics.
Main messages
One of the strongest themes running through the report is that members do not view their pension solely as a vehicle for maximising financial returns, with assembly participants particularly interested in how pension capital can shape the economy and society rather than just buying financial assets.
Sessions revealed that participants supported the use of ownership rights to drive change rather than relying solely on exclusions or divestment.
According to NEST, a major message from the Assembly was that members want a more meaningful role in shaping how the pension fund “listens and responds”.
Examples included holding future member assemblies, reconvening the Assembly to review progress, and exploring a Member Council linked to the NEST board.
Other key findings from the assembly indicate there is significant member interest in investments that are connected to everyday life, including affordable housing, infrastructure, UK investment, climate solutions and community outcomes.
