People's Pension vs NEST

By PaySlipCheck Editorial · Reviewed by PaySlipCheck Editorial Standards Team · 14 June 2026 · 5 min read

People's Pension and NEST are the two largest UK workplace pension providers. Between them they serve tens of millions of auto-enrolled workers. On fees, People's Pension is typically cheaper long-run (no 1.8% contribution charge, though slightly higher 0.5% AMC vs 0.3%). On fund choice People's Pension has more variety (8 funds vs 5). Both offer ethical options; only NEST has Sharia. For most members switching or consolidating, this comparison matters — a 0.4% fee difference compounds to £15,000+ on a £50k pot over 30 years.

Verified against 4 official sources · Last reviewed 14 June 2026
On this page
  1. Fee comparison
  2. Long-run cost comparison — £50,000 pot over 30 years
  3. Fund choice
  4. App + user experience
  5. Contribution mechanism
  6. Which one wins?
  7. In short

Fee comparison

Fee NEST People's Pension
Annual management charge 0.3% 0.5%
Contribution charge 1.8% (paid on each new contribution) 0%
Transfer-in fee £0 £0
Exit fee £0 £0

Long-run cost comparison — £50,000 pot over 30 years

At 5% annual growth (assumed same for both):

NEST: - Effective annual fee ~0.35% (AMC + amortised contribution charge) - Cost over 30 years: ~£3,600 in fees - Final pot: ~£180,000

People's Pension: - Effective annual fee 0.5% - Cost over 30 years: ~£5,100 in fees - Final pot: ~£178,500

Verdict: For a stable, non-topping-up pot, NEST is marginally cheaper long-run. For a heavily-contributing pot (£10k/year over 30 years), People's Pension becomes cheaper because the 1.8% contribution charge on NEST punishes fresh money.

Fund choice

Type NEST People's Pension
Default fund Retirement Date Balanced Investment
Total funds 5 8
Ethical Yes Yes
Sharia Yes No
Sustainable/ESG Yes Yes
Cautious Yes Yes
Higher-risk growth Yes Yes

People's Pension has slightly wider selection; NEST covers all major bases but with less variety.

App + user experience

  • NEST: basic app + web portal. Functional but slow.
  • People's Pension: more polished app. Better transparency on returns + fees.

Contribution mechanism

  • NEST: relief-at-source (HMRC tops up basic rate)
  • People's Pension: typically relief-at-source or net-pay depending on employer setup

Both work with salary sacrifice if the employer sets it up.

Which one wins?

  • Actively contributing throughout 30 years: People's Pension wins on fees
  • Stable pot with occasional top-ups: NEST wins marginally
  • Value fund choice + app: People's Pension
  • Value Sharia option specifically: NEST
  • Just want default and don't care: Either fine

For most workers under 50 with 20+ years of contributions ahead, People's Pension is the fee-efficient default.

In short

People's Pension and NEST are similar quality — the material difference is that NEST charges 1.8% on new contributions vs 0% for People's Pension. Over a full career this makes People's Pension cheaper for actively-contributing members. Switch on job change if given the choice.

Frequently asked questions

Can I move from NEST to People's Pension?

Yes — free transfer, no exit fees. Contact People's Pension to initiate.

Which has more fund choice?

People's Pension (8 funds vs 5). NEST has a Sharia option; People's Pension does not.

Which is cheaper?

Depends on contribution activity. Actively-contributing members: People's Pension. Stable pots: NEST.

Does my employer choose which?

Yes — the employer sets up the scheme. You can transfer out once contributed.

Which has the better app?

People's Pension has a more polished experience. Both offer basic account management.

Related calculators

Related guides

  • NEST pension explained — NEST (National Employment Savings Trust) is the UK's default workplace pension provider set up to support auto-enrolment. This guide covers what it is, how it works, fund choices, fees, and how it compares to People's Pension + Smart Pension.
  • Salary sacrifice — Salary sacrifice is the most tax-efficient UK pension contribution
  • Is sacrifice worth it? — Salary sacrifice is typically a strong win for higher-rate
  • Higher-rate pension relief — UK higher-rate taxpayers get 40% pension tax relief — but if
  • Pension tax relief — UK pension tax relief is given at your marginal Income Tax rate
  • Pension and take-home — A £100 monthly pension contribution doesn't reduce your take-home
  • Pension annual allowance — The UK pension annual allowance is £60,000 for 2026/27 — the

More on related topics

  • Employer pension match — UK employer pension match ranges from the 3% auto-enrolment minimum to 15%+ at generous employers. Capturing full match should be your first pension priority — it's free money. This guide covers structure + negotiation.
  • Claim higher-rate pension relief — UK higher-rate pension tax relief above basic rate must be claimed via Self Assessment (relief-at-source schemes) or is captured automatically (net-pay/salary sacrifice). This guide covers the claim process.
  • Net pay pension scheme — Net-pay pension arrangement deducts contribution from gross salary BEFORE Income Tax (all bands automatic) but AFTER NI. Common in large-employer defined-contribution schemes. Doesn't save NI like salary sacrifice.

Related salary breakdowns

Glossary terms used on this page

Quick definitions for the key terms above.

  • Salary sacrifice — An arrangement where you give up part of your gross salary in exchange for a non-cash benefit (most commonly pension contributions), reducing your Income Tax and National Insurance.

Sources

All figures on this page are sourced from official UK government publications. We don't cite secondary commentary or other calculator sites.

  1. GOV.UK — Tax on pension contributions
  2. HMRC — Pension tax rules
  3. GOV.UK — Workplace pensions + auto-enrolment
  4. MoneyHelper — Pension basics

For the calculation methodology behind every figure on this page, see our methodology. For our review and update process, see our editorial standards.

Last reviewed: 14 June 2026. Next review due 14 December 2026.

Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.