Can I Opt Out of My NEST Pension?

Who this guide is for

Workers anywhere in the UK whose employer has put them into Nest, or who have a Nest pension pot, and want to know how to opt out, what happens to their money, what Nest charges and what happens to their pot when they leave a job. Nest is open to employers anywhere in the UK, and the opt-out rules are the same in England, Wales, Scotland and Northern Ireland.

What this guide does not cover

• The general rules on automatic enrolment: who must be put into a pension, the earnings amounts, how much you and your employer must pay in, and what your employer must and must not do. Read Can I Opt Out of My Workplace Pension? or use the workplace pension checker.
• A workplace pension with a provider other than Nest: use the workplace pension checker.
• What happens to your pension if your employer goes bust: use the pension protection checker.
• When and how you can take money out of your Nest pot, Nest's investment funds, what happens to your pot when you die, the State Pension, pension tax limits, pension scams and pensions on divorce. This guide does not cover them: ask Nest or MoneyHelper.
• Joining Nest as a self-employed person. This guide does not cover it: ask Nest or MoneyHelper.

The questions that decide the answer

1. Is your pension with Nest? Have you had a welcome letter from Nest, or has your employer told you it uses Nest?
2. Did your employer enrol you automatically, or did you ask to join? If you asked to join, does your employer pay in?
3. When does your opt-out period end, and has that date passed?
4. Are you still in the job, or have you left or changed jobs?

"How do I opt out of Nest?"

You must tell Nest before your opt-out end date. There are three ways:

• Online: use the opt-out form on Nest's website. It is the fastest way. You need your Nest ID and your National Insurance number. The online opt-out is only available during your opt-out period.
• By phone: call 0300 020 0090 and follow the automated instructions. The automated line is open 24 hours a day, 7 days a week. Have your Nest ID ready: Nest cannot give it to you during the call. Do not ask to speak to a person. Nest's staff cannot process an opt-out for you.
• By post: call 0300 020 0090 to ask for a paper opt-out form, fill it in and give it to your employer within your opt-out period. Post takes longer, so your employer may take more contributions from your pay before the opt-out goes through. Near the end of your opt-out period Nest will not send a form, because it would not reach you in time: opt out online or by phone instead.

Your Nest ID is in the welcome letter Nest sent you when you joined.

"When does my opt-out period end?"

The opt-out period is one calendar month. By law it starts on the later of the date you became a member of the scheme and the date you got your employer's letter with the enrolment information. You cannot opt out before you have been enrolled.

Your opt-out end date is in the welcome letter Nest sends you by post, and you can see it by logging in to your Nest account. You should get the welcome letter within 10 working days of being enrolled in Nest. If it has not arrived within 2 weeks, ask your employer to contact Nest, or call Nest on 0300 020 0090.

"I asked to join Nest. Can I opt out?"

If you asked your employer to enrol you and your employer pays in, you can opt out in the same way, within one calendar month.

If you asked to join and your employer does not pay in, you do not have the right to opt out. This is the case if you earn £6,240 a year or less. You can still stop paying in under Nest's rules: ask Nest or your employer how.

"What happens after I opt out?"

• Nest sends you a confirmation by email or by post, whichever you chose.
• Nest tells your employer to stop taking contributions from your pay straight away. If you opted out after your employer's payroll cut-off date, you may see one more pension deduction on your payslip.
• Nest refunds your contributions to your employer within 10 working days of being told you are opting out. Your employer passes the refund to you.
• If you opted out in time, you get back all the money you paid in through your pay. Your employer stops paying in for you as well.

If the refund does not reach you, raise it with your employer first. If it is not put right, you can report it to The Pensions Regulator.

"I missed my opt-out date"

After your opt-out end date Nest cannot refund your contributions. You can still stop paying in at any time. This is stopping your contributions or taking a break, not opting out.

The money already in your pot, including what your employer paid in, stays invested in your Nest pot. This guide does not cover when you can take it out: ask Nest or MoneyHelper.

If you stop paying in, you may miss out on tax relief and you are likely to lose your employer's payments too.

You can ask your employer to start your payments again. If you opted out or stopped paying in during the last 12 months, your employer does not have to accept you back.

If you opted out or stopped paying in, your employer must put you back in about every 3 years, as long as you still qualify. The timing is set by your employer's pension dates, not by when you started. Nest sends you a new welcome message, and you can opt out again each time.

"My employer wants me to opt out, or says it has opted me out"

Only you can opt out of Nest. Your employer cannot do it for you, and it must not encourage or force you to opt out. The Pensions Regulator can take action against employers who try to get workers to opt out, and you can report your employer to it.

If you have been dismissed or treated unfairly for being in the pension, you may be able to make a claim to an employment tribunal (an industrial tribunal in Northern Ireland). The time limits are short.

"What does Nest charge?"

Nest takes two charges from your pot: 1.8% of every payment into your pot and 0.3% a year of the total value of your pot. These are the only charges members pay.

Nest does not charge you to move your pot to another pension scheme, change your retirement date or switch your investment fund. Nest does not charge employers to use it.

"I'm leaving my job, or I've changed jobs"

Your Nest pot belongs to you, not your employer. When you leave a job, the payments into your pot from that job stop, but Nest keeps looking after your pot. The reason you leave makes no difference.

• If your new employer also uses Nest and you join Nest again, your payments go into the same pot.
• If your new employer uses a different scheme, your Nest pot stays with Nest. Once regular payments into it have stopped, you can move (transfer) it to another pension scheme. Nest does not charge for this, but the scheme you move to may charge.
• If you become self-employed, you can choose to keep paying into the same Nest pot.

You can keep track of your pot by logging in to your Nest account.

"My employer is not paying into Nest"

Log in to your Nest account to check what you and your employer are paying in. Raise it with your employer first. If it is not put right, you can report it to The Pensions Regulator.

Nest has its own complaints process. For a complaint about Nest or your employer that has not been sorted out, The Pensions Ombudsman may be able to investigate. There are some things it cannot look at.

Northern Ireland

Nest is open to employers in Northern Ireland too. The automatic enrolment rules, including the one-month opt-out, are in the Pensions (No. 2) Act (Northern Ireland) 2008 and work the same way as in Great Britain. The Pensions Regulator and The Pensions Ombudsman cover Northern Ireland.

For dismissal or unfair treatment at work, contact the Labour Relations Agency (LRA): claims go to an industrial tribunal, not an employment tribunal.

Deadlines you must meet

• Opting out with a refund: by the opt-out end date Nest gives you, one calendar month from the later of your enrolment date and the date you got your employer's letter.
• A paper opt-out form: ask in good time. Near the end of your opt-out period Nest will not send one.
• Your refund: Nest refunds your employer within 10 working days of being told you are opting out, and your employer passes it to you.
• Starting again after opting out or stopping: your employer does not have to accept you back within 12 months.
• Re-enrolment after opting out: about every 3 years.
• A tribunal claim about dismissal or unfair treatment: your exact date depends on your facts. The tribunal deadline checker works it out.

Traps

• Asking to speak to a person when you call Nest does not opt you out: use the online form or the automated line.
• Waiting for a paper form near the end of the month can make you miss your opt-out end date.
• Opting out means losing your employer's payments into your pot, not just your own.
• Missing the opt-out date does not lock you in: you can stop paying in, but the money already paid in stays in your pot.
• Leaving a job does not empty your Nest pot: the money stays yours.
• Opting out is not for good: your employer will put you back in about every 3 years if you still qualify.