Nest's annual report and accounts have revealed that the group has begun repaying its loan to the government and remains on track to repay the loan in 2038, after returning a profit for the first time in 2024/25.

The reports, which cover both Nest Corporation and the Nest pension scheme, highlighted the group's continued growth, revealing that the scheme's membership grew from 13 million as at March 2024 to 13.8 million at March 2025.

This growth in membership, combined with the persistency of pension savings, meant that member contributions outperformed expectations, with Nest receiving, on average, £663m in new contributions each month.

It also revealed that, for the first time, Nest recorded a profit of £11.9m, which means all the scheme’s operating expenditure was covered by income from member fees and charges.

The scheme also made its first repayment on the government loan and confirmed that, based on current forecasts, it should repay this in full in 2038.

The annual report and accounts also provided an update on its recent investment performance, revealing that the 2045 Nest Retirement Date Fund, designed for members expecting to retire in 2045, which represents those in the growth phase, had five-year annualised returns of 9.9 per cent.

This is "well ahead" of Nest’s long-term objective to achieve investment returns of at least 3 percentage points above inflation, which would equate to a 7.8 per cent return during this period.

Amid the wider push towards UK investments, Nest also confirmed that it had around £10.6bn in UK assets at the end of March 2025, meaning that more than a fifth of its assets under management are in UK investments.

In addition to this, as of 31 March 2025, Nest had £22.8bn invested in its climate-aware equities strategies, growing from £12.6bn invested in 2022.

Nest Corporation chair, Brendan McCafferty, said that this was a "significant year" for Nest, emphasising that despite economic volatility and inflationary pressures, Nest's investment approach has remained "resilient".

"We have consistently delivered healthy, stable returns while thoughtfully managing investment risk for our diverse membership," he continued.

"Our message to members is simple: stay the course. Long-term saving, particularly through turbulent times, leads to growth and greater financial security.

“Nest is not just a pension provider; we aim to influence the industry and advocate for better outcomes for all savers.

"As we grow, we will remain focused on our purpose of building financial peace of mind for all, always acting in members' best interests and building a pension they can continue to trust.”

Adding to this, Nest CEO, Ian Cornelius, said: “Reflecting on my first year as CEO, I am proud of the considerable progress and transformation we have achieved at Nest, amidst a period of global uncertainty.

"Our new 2030 corporate strategy aims to make us a best-in-class pension provider and keeps our members’ best interests at the heart of what we do.

“This strategy is centred around four key member-centric goals: maximising the value of members’ pensions, helping members contribute what's best for them, improving day-to-day financial resilience, and making members’ money go further in retirement

“As the UK’s largest workplace pension provider, serving over 13 million members, we continue to influence and advocate for better outcomes for low to middle-income savers.

"Our aspiration to grow our private market allocations reflects our belief in the long-term value these investments can deliver.

"We are proud to be signatories to both Mansion House 1 and 2, reinforcing our commitment to investing in the UK economy and supporting the communities where our members live and work.”

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