UK’s NEST delivers first profit as it starts government loan repayment

According to NEST’s latest annual report, the UK defined contribution master trust returned a profit for the first time and has begun repaying its loan to the government, which it expects to fully repay by 2038.

The annual report shows that the workplace pension fund’s membership grew from 13 million as at March 2024 to 13.8 million at March 2025. NEST said the growth in membership alongside the persistency of pension savings enabled member contributions to both continue to grow and outperform expectations, with NEST receiving, on average, £663m in new contributions each month.

As of 31 March 2025, there was also circa £50bn total net assets, of which £10.6bn was invested in the UK, representing around 21% of total net assets.

The report also shows that NEST has for the first time recorded a profit of £11.9m, which means all of the scheme’s operating expenditure was covered by income from member fees and charges.

NEST also made its first repayment on a government loan, which stands at £1.2bn, and said that based on the current forecast, it should repay it in full by 2038.

Returns

The report also shows that the 2045 NEST Retirement Date Fund – which is designed for members expecting to retire in 2045, representing those in the growth phase – had five-year annualised returns of 9.9%.

This, NEST said, is “well ahead” of its long-term objective to achieve investment returns of at least three percentage points above inflation, which would be 7.8% based on the 4.7% inflation during that period.

Ian Cornelius, NEST’s chief executive officer, said: “Reflecting on my first year as CEO, I am proud of the considerable progress and transformation we have achieved at NEST, amidst a period of global uncertainty.”

Cornelius added that the scheme’s 2030 corporate strategy is centred around four key member-centric goals: maximising the value of members’ pensions, helping members contribute what’s best for them, improving day-to-day financial resilience, and making members’ money go further in retirement.

He continued: “As the UK’s largest workplace pension provider, serving over 13 million members, we continue to influence and advocate for better outcomes for low to middle-income savers.

“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 1 and 2, reinforcing our commitment to investing in the UK economy and supporting the communities where our members live and work.”

Brendan McCafferty, chair of NEST Corporation, added: “This was a significant year for NEST, including covering all operating expenditure from member-generated income for the first time, and recording a modest profit whilst beginning the repayment of our loan from the government.”

He added that in a year, “marked by economic volatility and inflationary pressures”, NEST’s investment approach has remained “resilient”.

“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,” he explained.

“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,” McCafferty said.

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