Paul Todd sets out what meaningful member accountability should look like in modern pensions
Traditionally, decisions about pensions have been made at a distance from the people whose futures depend on them.
Trustees, employers and experts have debated investment strategies and risk, while members have been expected to trust that those decisions were being taken in their best interests.
Now, the reality of UK pensions has shifted. As the risk for delivering retirement outcomes has moved from employers to individuals, the obligation on pension schemes to explain and stand behind their investment decisions has intensified.
For millions of people, retirement depends on how well their pension is invested and managed over a working life – delivering strong, sustainable returns while managing risks responsibly.
That belief sits at the heart of why Nest recently convened its first ever member assembly.
A scheme built for everyone
Nest was created to support auto-enrolment, with a clear public service obligation: we accept any employer, and therefore every worker, into our scheme.
There are now 14 million people saving with Nest – that's around one in three working people in the UK. And our membership reflects the modern labour market – many move between employers or in and out of regular work, and the average salary is just over £25,000.
Half of our members work for employers with fewer than 50 employees, and many are employed in sectors such as catering, health and social care, manufacturing and retail. In short, Nest overwhelmingly supports people for whom every pound saved really matters.
Growing our members' pots, by delivering strong long-term investment returns, is not an abstract objective; it is the core of our fiduciary duty, and it guides every decision we take.
From representation to accountability
Nest has always had structures in place to reflect member views. We were set up to have a member panel and an employer panel, both of which have played an important role in developing our approach. Their involvement helped shape the availability of fund choices that reflect different values, beliefs and risk appetites.
As pensions have become more complex, and the consequences of investment decisions more visible, we wanted to test assumptions, explore trade-offs and ground decisions in members' lived experience.
That is why, over two weekends at the end of January, we brought together a diverse group of Nest members for the UK pension world's first member assembly. Selected to reflect the breadth of Nest's membership, assembly participants took part in structured, informed discussions about how we invest on their behalf.
Working with leading academic experts and supported by an independent advisory group, the assembly was designed to be rigorous, balanced and credible.
Members heard from independent specialists, considered evidence, debated trade-offs and developed recommendations. Their remit was deliberately ambitious: to consider how Nest invests in the best interests of its members, including how member values are reflected, how we exercise investment ownership rights, and what level of information and involvement members should have in investment decisions.
This was not a consultation exercise, but a conscious attempt to place Nest's investment approach under informed member scrutiny.
Early insights from the assembly
The assembly's final report will be published in the coming weeks. But as the report is being drafted, two themes have already emerged.
First, members recognise that their pension savings can have a wider impact on society, particularly through UK based investment. They want to understand how their money contributes not only to financial returns, but also to economic resilience and long-term growth.
Second, members care deeply about how their money is invested. Low day to day engagement should not be mistaken for indifference: people have strong views about where and how their savings are used.
The future for pensions?
For Nest, the member assembly is part of a broader effort to evolve how we operate. We want to make pensions more accountable to the people they exist to serve. At our scale, listening is essential.
The assembly's outcomes will inform our upcoming triennial review of investment objectives, and help ensure our investment strategy continues to reflect both our fiduciary responsibilities to drive returns as well as our members' priorities.
But beyond any single decision, the assembly has already demonstrated that ordinary savers, when given the time, information, and respect, are more than capable of engaging with complex questions about their financial future.
In a pensions system built on trust, this lesson matters. Especially as workplace pensions consolidate and decision-making concentrates in fewer, larger funds. As schemes grow, they must find practical ways to stay close to members' needs and values.
The promise of Nest has always been to act in the best interests of our members. The member assembly is a step towards keeping that promise and showing how large schemes can be accountable to the people whose money they manage.
Paul Todd is chief operating officer at Nest Invest
