Nest and auto-enrolment

elantan

Thanks for all your help James much appreciated

will phone them tomorrow, i think i can just take their 1% and not put anything in ... i do have a H&L account ( although i dont fully understand how it works) so will maybe start off with a s.i.p.p from there ...and put the money i was going to put into my works pension into it... will look at various funds, and start a s&s i.s.a ... i do need to get my financial life organised particularly if i am going to retire 5 years early

jamesd

For HL best to start with the ISA. There's a discount on the funds there that doesn't apply to the same funds held inside the SIPP. There's also that chance that income tax may combine the current income tax and NI contributions in the future and get a higher rate of tax relief later if you switch the money from ISA to SIPP. And your earnings are enough so that it won't be a problem to quickly switch all of the money from ISA to pension later.

elantan

So i phoned work and explained that i have decided to reduce my payments ... It was reiterated to me the great things that the scheme do and i pointed out the inflexability, then said " look i'm grateful that finally after working here for several years ( not too far off of 10) that finally i get a pension contribution paid in my name , but i still have an obligation to make my money work harder for me"

So my contribution is now at a minimum and my isa will be started up on pay day ... Should i pay a % from the gross or net wage ... Hmmm

jamesd

Well, one nice thing about an ISA is that you can take money out if you find that you've been paying in too much...

Once you have the ISA set up you might want to look at changing the NEST investment being used. By default they start people out on a fairly low growth option for the first five years and it's better to switch to one of the standard growth ones if you can handle the ups and downs in value.

elantan

Will do, although i'm now only paying £9 a month plus £9 from my employer i think it might be a while before it's worth anything lol