Nest's scheme membership rose to 13 million in 2023/24, according to its latest Annual Report and Accounts, with this recent growth and the persistency of pension savings enabling member contributions to out-perform expectations.

Nest Corporation's latest Annual Report and Accounts showed that, as at March 2024, Nest was managing £40.6bn on behalf of 13 million members and 1.1 million employers.

This is compared to £29.6bn on behalf of 12 million members and 1.1 million employers for the same time last year.

Nest Corporation chair, Brendan McCafferty, also noted that this was during a period of time where people were having to make difficult decisions about their savings, with the cost-of-living and inflation putting pressure on household finances.

“Despite this, our members stayed with us, with only 9 per cent opting out," he noted. "This persistency of saving offers peace of mind to members as they build a foundation of financial security on which to retire."

Monthly contributions also rose in line with this, as each month on average Nest received £605m in new contributions for its members’ pots this year, compared with £543m last year.

But with around 99 per cent of its 13 million members remaining in its default investment strategy, Nest emphasised the importance of using its scale to help deliver for its members strong, consistent investment returns over the long-term.

"We have remained focused on enhancing the value of members’ investments over the long term, introducing new investment mandates aimed at delivering the best retirement outcomes for our members," McCafferty said.

"Diversification of our investment strategy through these new mandates offers alternative types of investments in private markets and infrastructure whilst supporting our commitment to responsible investment."

As evidence of this, McCafferty noted that the scheme's default investment approach has continued to perform "well".

Indeed, the 2040 Nest Retirement Date Fund, which currently represents the growth phase of the default strategy, delivered annualised returns (net of the annual management charge) of 8.3 per cent, outperforming the 6 per cent objective.

The report also revealed that, as of 31 March 2024, Nest had £19.9bn or 49 per cent invested in its climate-aware equities strategies, growing from £352m or 12.6 per cent invested in 2018.

The group's annual report also highlighted its investments in the UK, noting that more than a fifth of its investments are based here, and around £2.7bn invested into shares and corporate bonds of established UK companies.

And this domestic allocation is set to increase, as McCafferty confirmed that the group is expected to have £20bn invested in the UK by the end of the decade.

Nest previously announced plans to share more information on its UK-based investments, after its research found that the majority (70 per cent) of its members wanted more information about how it invests in the UK.

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