Comparison · Workplace Pensions · 2026
NEST vs People’s Pension vs Smart Pension 2026: Which Workplace Pension?
NEST, The People’s Pension and Smart Pension are the three master trusts most UK employers meet when staging for auto-enrolment. Employers need to know which will accept their business and integrate with payroll; employees need to know how charges and app quality affect the pot they will retire on. This guide compares all three for 2026.
TL;DR -- 30-Second Summary
- • NEST: government-backed, must accept any employer, historically a contribution charge plus AMC (check current rate)
- • The People’s Pension: not-for-profit (run by B&CE), typically a low tiered AMC that reduces as pots grow
- • Smart Pension: commercial master trust, fees usually set per employer scheme
- • All three accept transfers in and offer a member app, but quality and current charges should be verified directly
- • Employers should weigh payroll integration and acceptance criteria; NEST is the guaranteed fallback
Side-by-Side Comparison
| Feature | NEST | The People’s Pension | Smart Pension |
|---|---|---|---|
| Provider type | Public body | Not-for-profit (B&CE) | Commercial master trust |
| Must accept any employer | Yes, public service obligation | No fixed obligation | No fixed obligation |
| Typical charging structure | AMC plus a contribution charge (verify current rate) | Tiered AMC, reduces as pot grows (illustrative) | Varies by employer scheme (illustrative) |
| Consolidation of old pots | Transfers in generally supported | Transfers in generally supported | Transfers in generally supported |
| Mobile app / online account | Available, check current reviews | Available, check current reviews | Available, check current reviews |
| Auto-enrolment qualifying earnings | GBP 6,240 to GBP 50,270 (frozen band, 2026/27) | ||
Worked Example: How Charges Affect a GBP 20,000 Pot
The exact numbers below are illustrative only, since real charges vary by provider and change over time. They show the mechanism: a small annual charge deducted from a growing pot compounds into a meaningful difference over a working life, so it is always worth checking a scheme’s current charges booklet rather than assuming a headline rate.
| Measure | Illustrative low-charge scenario | Illustrative higher-charge scenario |
|---|---|---|
| Starting pot | GBP 20,000 | GBP 20,000 |
| Illustrative annual charge | around 0.3% a year | around 0.5-0.75% a year |
| Approx. cost over 20 years (no new contributions, illustrative growth) | lower cumulative drag | meaningfully higher cumulative drag |
This is a simplified illustration of compounding, not a comparison of any specific provider’s actual current fee. Always pull the real charges from each scheme’s key features document or annual statement before comparing, since NEST, The People’s Pension and Smart Pension all publish their own current figures and these can change.
The Employer’s Decision
For an employer staging auto-enrolment, the practical questions usually matter more than headline charges: does the provider integrate with your payroll software, how easy is onboarding new starters and processing re-enrolment every three years, and will the provider actually accept your business. NEST’s obligation to accept any employer makes it the safe default, particularly for very small employers, seasonal workforces, or sectors that other providers have historically been cautious about.
The People’s Pension and Smart Pension are widely used across employers of many sizes and both compete on service and integration. Get current quotes and confirm payroll compatibility before staging, since switching provider later adds administrative work.
What the Employee Actually Experiences
Most employees do not choose their workplace pension provider; their employer does. What you can control is checking your own scheme’s current charges, using the provider’s app or online portal to track contributions, and deciding whether to consolidate old pension pots from previous jobs into your current scheme or elsewhere.
Charges eat into growth every year, so even a fraction of a percentage point matters over a career. If you change jobs and move between NEST, The People’s Pension and Smart Pension across different employers, keep track of each pot and compare current charges before deciding whether to combine them.