If you have a Nest pension and want to take your available tax-free cash while leaving the remainder of your pension invested in flexi-access drawdown, there is an important limitation to understand:
Nest does not currently offer flexi-access drawdown.
This means you cannot currently use your Nest pension in the conventional flexi-access drawdown way to take your available tax-free lump sum upfront while leaving the remaining pension savings in a flexi-access drawdown arrangement within Nest.
Nest does offer other ways of accessing pension savings. However, if you specifically want flexi-access drawdown, Nest says you can transfer your pension pot to a drawdown provider.
A transfer is a significant financial decision and will not be suitable for everyone. This guide explains how the options differ and some of the risks and costs you should consider before making a decision.
Yes, but it is important to understand how the method of taking benefits affects the tax treatment.
Nest's current retirement material explains that tax-free cash can be taken in connection with its available retirement options. However, Nest does not currently offer flexi-access drawdown.
If your objective is specifically to take your available tax-free lump sum upfront and leave the remaining pension savings invested in a flexi-access drawdown arrangement, you would need to consider a provider that offers that facility.
Tax treatment depends on your individual circumstances and the pension tax rules and allowances applying at the time.
No - Nest does not currently offer flexi-access drawdown.
Nest's current retirement guidance identifies transferring your pension pot to a flexi-access drawdown provider as one of the options available to members.
Flexi-access drawdown allows pension savings to remain invested while withdrawals can be taken over time.
Money left invested remains exposed to investment risk. Its value can go down as well as up, and there is no guarantee that it will grow or provide sufficient income throughout retirement.
Yes - Nest is working towards introducing flexi-access drawdown and a broader retirement proposition.
In March 2026, Nest announced that amendments to the Nest Order giving it specific power to offer flexi-access drawdown had been laid before Parliament.
Those legislative changes subsequently came into force. Nest states that its Order was amended on the 29th April 2026 to allow Nest to offer flexi-access drawdown and related benefits.
Nest's scheme rules were then amended on the 31st August 2026 to provide additional detail and a broad framework for flexi-access drawdown and related retirement and death benefits.
This is an important development for Nest members. However, there is a distinction between the legislation and scheme rules enabling Nest to provide flexi-access drawdown and the service actually being available to members.
Therefore, if you want to take your available tax-free cash upfront and leave the remainder invested through flexi-access drawdown today, you would currently need to consider a provider that already offers that facility.
If you do not need to access flexi-access drawdown immediately, Nest's developing retirement proposition may also be relevant when deciding whether transferring now is appropriate for your circumstances.
Nest's retirement offering can change, so you should always check its latest retirement options before making a transfer decision.
If your objective is to take your available tax-free cash upfront and leave the remainder invested through flexi-access drawdown, you can consider transferring your Nest pension to a provider that offers this facility.
Nest currently states that it does not charge for transferring money out.
However, this does not mean that transferring your pension is cost-free. The receiving provider may charge for receiving, administering or investing your pension and may have different ongoing charges.
For example, Pension App currently charges an initial fee of 0.6% on completed transfers, together with total annual fees and charges of 0.82% of the pension fund value per year. Pension App currently states that there are no further charges for contributions or withdrawals.
Charges can change, so you should check the latest charges before proceeding.
You should compare the charges, investment options, benefits and features of your existing Nest pension with those of the proposed receiving pension before making a decision.
Not necessarily.
The availability of flexi-access drawdown alone should not be treated as sufficient reason to transfer a pension.
If you do not expect to access your pension for a number of years, your existing arrangement may continue to meet your needs. Your retirement objectives and preferred way of taking benefits may also change.
Before transferring, consider:
Charges and costs: Compare the charges on your existing pension with those of the proposed new pension.
Investment performance: Your money may be invested differently following a transfer. Investments can fall as well as rise and future performance is not guaranteed.
Benefits and features: Check whether you would lose any valuable guarantees, protections or other features by transferring.
Future contributions: If you are still contributing to your pension, consider the implications for future employer contributions and associated pension tax benefits before taking action.
Your retirement plans: Consider when and how you actually expect to access your pension rather than transferring solely to obtain a feature you may not need for several years.
Tax: Accessing pension benefits can have tax consequences. These will depend on your individual circumstances and the tax rules applying at the time.
You should therefore understand the costs, benefits, risks and implications before transferring a pension.
Pension App provides pension services that can include retirement access options.
Where flexi-access drawdown is available and appropriate to the customer's arrangement, it can allow eligible customers to take available tax-free cash while leaving remaining pension savings invested.
Any money remaining invested is not guaranteed to grow. Its value can go down as well as up, and withdrawals will reduce the amount available to fund your future retirement.
Taking tax-free cash as soon as it becomes available will not be suitable for everyone. Whether and when to access pension benefits should be considered in light of your individual financial circumstances and retirement objectives.
Before transferring, you should compare Pension App's charges, investment options and features with your existing Nest pension.
Transferring is not your only option.
Nest provides other retirement choices, including ways of taking money directly and options available from other providers.
If you do not specifically need flexi-access drawdown, an alternative may be more appropriate for your circumstances.
Nest's retirement proposition can change, so you should check its latest retirement information before making a decision.
Before accessing or transferring your pension, you may wish to use Pension Wise, the free and impartial government-backed service from MoneyHelper.
Pension Wise explains the options for taking money from a defined contribution pension, including the different ways of accessing a pension and how those options are usually taxed.
If you need a personal recommendation about whether transferring or accessing your pension is suitable for your circumstances, you should consider speaking to a regulated financial adviser.
If your objective is to take available tax-free cash while leaving the remainder invested through flexi-access drawdown, you can explore the options available through Pension App.
Before transferring, compare the costs, benefits, investment options and risks with your existing Nest pension and consider whether transferring is appropriate for your individual circumstances and retirement objectives.
This article is for information only and does not constitute financial advice.
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.
Your pension income could also be affected by the interest rates at the time you take your benefits.
The tax treatment of pensions depends on your individual circumstances and tax rules may change in the future.
Transferring or consolidating pensions will not be suitable for everyone. You should consider the costs, benefits, risks, charges and any features or protections you could lose before transferring.