NEST Pensions Q&A

Former_MSE_Andrea · 16 November 2017 at 11:58AM

Hi everyone

NEST is answering questions here on the Forum as a verified user. You can see its forum account here: Nest Pensions.

If you have a question click "reply" below to ask and it will try to help.

NEST has asked us to add it will aim to respond to any questions posted within two business days.

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dunstonh · 16 November 2017 at 4:26PM

Why do NEST insist on completion of discharge forms by providers when no other pension provider out there does the same?

This issue has popped on the forum several times. Providers won't fill them in. Nest insists on it and you get deadlock. Completion of discharge forms is very 1990s. Is it about time NEST stopped creating this block?

datlex · 16 November 2017 at 7:18PM

Why when using the increased premiums form to predict effect of increases in contributions, does it not allow you to put multiple increases? We know that there are increases to come (statutory minimums). Given that you don't have to put in these minimums into the increase it would suggest these are not taken account of.

mark1959 · 16 November 2017 at 7:50PM

Why does nest insist on signed forms of identification when other pension providers accept I am who I am? Not only that, but signed by certain professions but not others? And not even retired ones. It's all very 1920's.
Also, is it possible to draw an amount out each year under flexible drawdown it may be called, where 25% of the amount I draw out is tax free, the other subject to tax? The web site doesn't mention this, but then my main pension provider [Sanlam] discouraged this also,

NEST_Pensions · 17 November 2017 at 3:55PM

Hi, thanks for your feedback. I'll follow this up with the relevant team here and come back to you.

Zanderman · 17 November 2017 at 6:31PM

Hi Nest Pensions, good to see you back on MSE (and officially this time!)

The questions below (already mentioned by others above) are adapted from my post on another NEST thread here:http://forums.moneysavingexpert.com/showthread.php?t=5733909 (still unanswered... )

Could you address the problems people are reporting regularly re NEST - which relate to transfers in. You, NEST, insist on the previous pension provider filling in a form whereas the convention is that the previous pension provider expects you, NEST, to fill in a form.

There are reports on this forum that this approach goes on for months, with both sides blaming the other. Do NEST have any comment and/or a solution to this?

Here are three other threads about this:
http://forums.moneysavingexpert.com/showthread.php?t=5731390
http://forums.moneysavingexpert.com/showthread.php?t=5665098
http://forums.moneysavingexpert.com/showthread.php?t=5732027

dunstonh · 17 November 2017 at 8:07PM

Could you address the problems people are reporting regularly re NEST - which relate to transfers in. You, NEST, insist on the previous pension provider filling in a form whereas the convention is that the previous pension provider expects you, NEST, to fill in a form.

I will just clarify that as its linked to my comment further up.

Most providers do not fill in discharge forms. In fact nowadays, most providers don't need discharge forms at all as they use the origo options system for transfers.

However, where one side or both do not use that system, discharge forms are still usually required but only for the client signature. The discharge forms still usually have the boxes for completion by the receiving scheme but no provider fills them in (although some have just moved to a request to transfer form which is usually no more than a single side of A4 with a couple of sentences). The providers issue each other with all the details that each other needs to complete the transfer (like a data sheet).

NEST is virtually unique in insisting that the other provider writes in handwriting all that info from the datasheet onto the NEST form and sign it. Most providers refuse to that as it is time-consuming and expensive. Although, NEST just borrows money from taxpayers. So, efficiency is not likely to be its strong point.

Alexland · 17 November 2017 at 8:36PM

Wow very brave of Nest to join this forum given all the recent unresolved difficulties people have experienced trying to transfer pensions to Nest to benefit from the low ongoing fees.

Most providers are very pleased to grow their assets under management so it's really odd that Nest are not willing to follow industry standard protocol.

Why should a loosing provider have to complete the gaining providers paperwork? It should be the other way around.

Nest are setting customers up with a very difficult problem and they end up here asking for help.

Also in terms of improving the proposition -

1) I think Next need to reconsider their Foundation investment phase. I know people don't like to see losses but it makes no sense to apply a conservative investment approach when some of the best growth can be achieved in the early years of investing.

2) I don't understand why Nest charge a high fee for recieving a regular contribution and zero fee for recieving a transfer which is much harder? Wouldn't it be better and more consistent to have a slightly lower fee for both?

Alex.

NEST_Pensions · 20 November 2017 at 10:32AM

Hi all, thanks for your posts and all the feedback. We are now reviewing these and will respond.

Zanderman · 20 November 2017 at 10:59AM

Alexland wrote: »

Wow very brave of Nest to join this forum given all the recent unresolved difficulties people have experienced trying to transfer pensions to Nest to benefit from the low ongoing fees.

I wouldn't call it 'brave'. It's common sense.

If Nest know what they're doing with their transfer system they should be able to address the concerns perfectly well and answer our questions.

If they don't know what they're doing they need to find out what they're doing wrong and address it.

I'd call it (overdue) customer service and (hopefully) listening to customer feedback.

Brave would imply they might be scared - and they shouldn't be. We don't want to scare them, we want them to help.

bigadaj · 20 November 2017 at 3:12PM

Zanderman wrote: »

I wouldn't call it 'brave'. It's common sense.

If Nest know what they're doing with their transfer system they should be able to address the concerns perfectly well and answer our questions.

If they don't know what they're doing they need to find out what they're doing wrong and address it.

I'd call it (overdue) customer service and (hopefully) listening to customer feedback.

Brave would imply they might be scared - and they shouldn't be. We don't want to scare them, we want them to help.

Or it's the corporate view of social media engagement whereby they are reaching out, but in actual fact little will be done.

NEST Pensions Q&A

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