How to Opt Out of a NEST Pension

Learn how to opt out of a NEST pension, when to do it, how refunds work, and what to consider before leaving your workplace pension scheme.

How to Opt Out of a NEST Pension

If you have been automatically enrolled into a NEST pension by your employer, you may be wondering whether you can opt out — and how to do it. While workplace pensions are one of the most effective ways to save for retirement, opting out is your legal right.

This guide explains how to opt out of the NEST pension scheme, when you can do it, how refunds work, and what to consider before making the decision.

What is NEST?

NEST (National Employment Savings Trust) is a government-backed, defined contribution workplace pension scheme. Under UK law, most employers must automatically enrol eligible employees into a pension scheme like NEST and make contributions on their behalf.

Once enrolled, both you and your employer contribute to your pension unless you choose to opt out.

Can you opt out of a NEST pension?

Yes. If you have been enrolled into NEST and do not want to stay in the scheme, you can opt out. However, there are rules around when and how you do this:

  • You must opt out within one month of your enrolment start date if you want a full refund

  • If you miss this one-month window, you can stop contributions, but you will not receive a refund of any amounts already paid in

How to opt out of NEST within the one-month window

You can opt out within one month of your NEST enrolment date. This date is usually included in the welcome letter or email you receive from NEST.

Step-by-step guide:

  1. Wait for your NEST welcome pack
    This will contain your NEST ID, enrolment date, and instructions.

  2. Choose how to opt out
    You can opt out using one of the following methods:

    • Online at nestpensions.org.uk

    • By phone: Call NEST using the number provided in your welcome pack

    • Using a paper form: Available from your employer if you cannot access online services

  3. Provide the required information
    You will need:

    • Your NEST ID

    • Your National Insurance number

    • The employer's reference or name (also found in the welcome pack)

  4. Submit your request
    Once submitted and confirmed, your opt-out will be processed. Your employer will be notified automatically.

  5. Receive a full refund
    Any contributions made during the one-month opt-out period will be refunded via your employer’s payroll. This may take a few weeks to show on your payslip.

What happens if you miss the one-month opt-out window?

If you decide to leave the NEST scheme after the one-month opt-out period, you will no longer be eligible for a refund of contributions already made.

However, you can still:

  • Stop contributing at any time by asking your employer

  • Leave your pension pot invested until retirement or until you transfer it elsewhere

  • Resume contributions later if your situation changes

Your account remains active, and your savings continue to be invested.

Things to consider before opting out

Before opting out of your NEST pension, consider the following:

  • You’ll lose employer contributions – If you opt out, your employer is no longer required to contribute to your pension. This means turning down what is effectively free money towards your retirement.

  • You’ll lose tax relief – The government tops up your pension with tax relief on every contribution you make.

  • You can change your mind later – You may be re-enrolled by your employer in the future (typically every three years), or you can rejoin voluntarily at any time.

  • Pensions are long-term savings – Even small contributions now can grow significantly over time due to investment returns and compounding.

If you are unsure, consider seeking free, impartial guidance from MoneyHelper.

Final thoughts

Opting out of a NEST pension is straightforward, but it’s a decision that should be made with care. Workplace pensions offer long-term financial security and valuable employer contributions that can boost your retirement savings considerably.

If you are sure it’s not right for you at the moment, opt out within the one-month window to receive a full refund. After that, you can stop contributions at any time, but your funds will remain invested.