Mark Fawcett, CEO of NEST Invest: How Smart Policy, Behavioral Nudges, and Sustainable Investing Are Reshaping Retirement for Millions
- Admin
- Jun 15
- 3 min read
Mark Fawcett, Chief Executive Officer of NEST Invest, explores how the UK’s pension system has been transformed to serve a broader and more economically diverse workforce. NEST is the largest multi-employer pension fund in the UK, and it handles the retirement savings for nearly one-third of the UK working population. NEST Invest is the asset manager of NEST. Fawcett offers a compelling narrative about scale, access, and purpose-driven financial management.
NEST’s core mission revolves around building financial resilience for all—an ambitious approach to investing that transcends the narrow goals of simple wealth accumulation. Fawcett discusses the profound impact of automatic enrollment, which dramatically expanded pension participation from just 10–15% of the UK workforce prior to its introduction to over 80% today. This shift has redefined the retirement outlook for millions, particularly low- to moderate-income earners, many of whom face significant income volatility and limited financial literacy.
Fawcett emphasizes the behavioral finance insights that underpin NEST’s strategy. By minimizing the cognitive burden of financial decision-making, NEST has made pension saving feel less like an anxiety-laden obligation and more like a manageable, automated part of life. A large majority of members remain in these default options, insulated from daily market turbulence, thanks to highly diversified investments across public and private markets.
Importantly, Fawcett also touches on the risks of both under-saving and over-saving. While many need encouragement to set aside more for the future, especially in the absence of emergency savings, others—particularly those closer to the poverty line—might unintentionally sacrifice present well-being for an uncertain future. Through sidecar savings initiatives and employer collaborations, NEST is investigating ways to improve short-term financial stability without undermining long-term retirement planning.
A significant part of the conversation also centers on NEST’s role in sustainable investing. The organization has embedded ESG principles directly into its default investment strategies—not as niche options, but as a core part of its offering. From renewable energy and infrastructure to affordable housing and UK enterprise investment, NEST Invest is demonstrating that doing well financially need not come at the cost of doing good. The returns, as Fawcett notes, have been competitive, underscoring the false dichotomy between performance and purpose.
This episode offers not only a powerful vision of inclusive finance but also actionable insights for policymakers, investors, and employers seeking to build systems that foster dignity, stability, and opportunity for all.
About Mark Fawcett
Mark Fawcett joined Nest as Chief Investment Officer (CIO) in 2008, where he was instrumental in designing and building the UK pension scheme’s investment strategy from the ground up. Under his leadership, Nest’s assets under management have grown from zero to £50 billion today. In 2019, Mark became CEO of Nest Invest, the FCA-authorised investment subsidiary of Nest Corporation, stepping down as CIO in 2023.
With over 35 years of experience in investment management, Mark has held senior leadership roles including Head of Japanese Equities at Gartmore and CIO at American Express Asset Management International.
He holds an MA in Mathematics and Philosophy from Oxford University and an MSc in Management from London Business School. He also serves as a non-executive member of the Defined Contribution Committee of the Unilever UK Pension Fund.
In 2023, Mark was awarded an OBE (a UK honour awarded by the King) for his services to pension saving.