How to Withdraw from Your Nest Pension
Nest doesn’t offer flexible ways to take money from your pension pot – but that doesn’t mean you’re stuck. You can set up a Penfold pension in minutes and transfer your Nest pot over – then start accessing your money your way.
Why can’t I withdraw directly from Nest?
Nest is designed to help you build up your pension – but when it comes to taking money out, it doesn’t offer much choice. They don’t provide flexi-access drawdown or annuity options, which means:
- You can’t start taking a flexible income
- You can’t manage how your pension stays invested
- You’re limited in how you access your money
The good news? You’re free to move your pension pot to another provider – like Penfold.
We'll process the withdrawal for you and everything you need is available online or through the app. No paperwork required.
Withdrawing with Penfold is free - there are no hidden charges for transferring or accessing your money.
How Penfold helps you withdraw flexibly
Transferring your Nest pension to Penfold means you can:
- Take a tax-free lump sum (typically 25%)
- Start flexible drawdown income when it suits you
- Keep your remaining pension invested and growing
- Change your withdrawals at any time
- Manage everything online or in our easy-to-use app
You’ll also get access to expert support, transparent fees, and award-winning customer service.
How to withdraw your Nest pension using Penfold
It only takes a few minutes to get started. It’s completely free, your money stays protected and there are no forms or phone calls needed. Just follow these steps:
Open your free Penfold pension account
This is where your Nest pension will be transferred.
Request your Nest transfer from your Penfold dashboard
Once you’re set up, go to 'Transfer a Pension' in your Penfold account and tell us you want to move your Nest pension.
We’ll do the rest
We’ll contact Nest, manage the transfer, and keep you updated along the way. You don’t even need to log into Nest.
More benefits of our pension
Fund options
Hand-picked, diversified pension plans backed by BlackRock and HSBC that help grow wealth.
Charges & fees
We hate hidden charges. That’s why we have one fee that covers absolutely everything within our service.
Single savings view
Combine pensions into one account to see total pension savings and get a clear view of projected retirement lifestyle.
Protection
Peace of mind that savings are FSCS protected and invested by some of the largest money managers in the world.
Pension withdrawal FAQs
25% of a pension can be withdrawn completely tax-free, any further withdrawals will be taxed as income and charged at the individual’s marginal tax rate.
Find out more about pension withdrawal tax
For most people, when they can access their pension depends on the type of pension and their age. For most, the retirement age for private pensions is 55, rising to 57 in 2028. This includes defined contribution workplace pensions.
Find out more about when pension withdrawals can start
- Let us know: Get in touch with us online or via our in-app chat and tell us you'd like to go into drawdown. We'll start the process immediately.
- Pick how you'll withdraw: Decide how you'd like to access your money. Get access to our expert withdrawal guides and resources to make the right decision for you.
- Confirm your details: Your security is our priority. Sign our documents digitally, confirm where you'd like to receive your withdrawals and your bank account details.
- Enjoy your retirement: Once we've processed all your information, you'll start to receive your pension payments into your chosen bank account. This normally takes a few weeks.