Nest is the leading workplace pensions provider in the UK. With 13 million members and over £48bn of assets under management (AUM) we look after the pension savings of over a third of the working population in the UK. Nest plays a critical role in helping people save for retirement, many of our members are low to moderate earners who may be saving for the first time and moving jobs frequently. We have a profound, driving sense of purpose in doing everything we can to grow our members’ savings and make a real difference to their lives.
Nest was set up by the government in 2010 with the mission to provide a high-quality pension solution for its members under the newly introduced auto-enrolment programme. Nest is a Public Corporation, funded by a government loan, but run by an independent board for the benefit of its members.
Nest is unique. We largely serve low to median income earners. We have a Public Service Obligation to accept any employer who wants to use our scheme for automatic enrolment. Over 1.1 million employers have registered with us so far, ranging from one-person sole traders to major supermarkets. That’s why we provide a straightforward digital pensions service that any employer in the country can easily use to meet their legal duties.
Our business model has been built on leveraging key strategic partnerships. Tata Consulting Services (TCS) have been the provider of all customer facing systems and operations since Nest was established. The relationship with TCS has evolved and developed significantly. TCS now have over 1200 colleagues supporting Nest from India and the UK. We recently entered a new 10-year contract with TCS which will deliver significant enhancements to the customer experience and technology platform.
Nest is entering the next stage of its development. We will soon start producing significant annual surpluses and no longer need to take additional government funding. Our scale advantage means we can invest in ensuring that members benefit from world class investment solutions, and service, delivered at low cost. We do this in a rapidly changing market, where we have been, and intend to continue to be, a force for good.
Nest Corporation is a public corporation and ensuring we meet our commitments in managing public money, as well as engaging with government in a positive and open way, will ensure we maintain trust and respect. We operate in a highly complex environment, with multiple stakeholders, often with differing views. As Nest grows, so will the scrutiny and attention, along with our own potential for influence in the pensions system and industry. At the heart of how we respond will be member interest, and our stated purpose. Nest is also a conventionally regulated business.
It is clear how important Nest is to people’s lives and their futures, as well as the relevance of Nest to public policy and public interest.
We have recently redefined our purpose and agreed a new 2030 corporate strategy to reflect our ambition to play an even bigger part in supporting our members and broader society by “Building financial peace of mind for all”. Our focus on members underpins everything we do – from the way we invest our members’ money to our approach to customer service and the way we operate as a business.
Nest is at a key inflection point. The business has now broken even, is producing surpluses and will no longer need to take additional government funding. We are growing strongly – by 2030 we expect to have over £100bn AUM and half the UK working population saving with us. As the external market becomes more complex and increasingly competitive, we need to evolve our strategy and develop our customer proposition to ensure we remain market leaders and deliver on our ambitious purpose.
Nest is in a strong position to build on its success but will need to transform to ensure we deliver on our bold ambitions, providing a market leading digital retirement service, financial wellbeing and retirement proposition in a rapidly evolving and highly competitive retail market.