The NEST Retirement Date Fund is set up for employees. Which one your contributions get invested into depends upon when you retire. So if you reach the State Pension age in 2055, your contributions will be invested into the NEST 2055 Retirement Fund. And so on and so forth.
It goes without saying that all NEST Retirement Date Funds invest widely and adjust the risk of the underlying investments according to what’s happening in the economy and when someone will retire, i.e. lower risk investments as you approach retirement.
Typical investments will include:
- Shares in major global companies
- Shares in companies in the emerging markets
- UK and international government bonds UK corporate bonds
- Direct UK property
- and international property companies
By diversifying in this way, you will benefit from having your money working for you in different areas — rather than putting all your eggs in one basket.