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Nest auto enrolment for agency workers

cherry76
cherry76 Posts: 1,032 Forumite
Part of the Furniture 100 Posts
My friend who works for an agency has been enrolled on nest. She does not seem to understand anything about it but was told if she has any questions to ring NEST. My friend likes to do casual work as she likes to travel, she does agency work, saves some money and then she is off. She asks me whether she should opt out, I do not know the answer but told her I will ask in the forum. What happens when she is not working and is travelling, can she top up her nest with her own money? What is the fee for running the pension fund? Will it be better to opt out? Also she has not received any documents regarding enrolment with nest. She has got not no pension except a deterred one when she left the council, she worked there for only 3 yrs. I have advised her she must think of the future. Pl can somebody help? Thanks
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  • dunstonh
    dunstonh Posts: 118,565 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    She asks me whether she should opt out, I do not know the answer but told her I will ask in the forum.

    The employer is paying into her pension. That is effectively free money. She has to pay in a tiny amount herself but it is very worth it. To opt would be like saying she does not want free money.
    What happens when she is not working and is travelling, can she top up her nest with her own money?

    She wouldnt do.
    Will it be better to opt out?

    Only if she wishes to throw free money away.
    I have advised her she must think of the future.

    Absolutely right. And if the employer/agency have selected NEST than that what she should use to get the maximum company contribution. Nothing will beat it up to that amount. However, if she wanted to pay more pr put aside money when she isnt working, then different options would exist for that money.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • So glad you asked this question, I am an agency worker now. I got an e mail today telling me about this pension but I can't find any where that tells me how much I would pay, money is already super tight on my salary, I don't really know anything about this scheme and previously had a teacher pension for about 7 years. I had heard about this scheme but at the time was in a contract job so didn't pay any attention.

    So is there somewhere that can tell me how much (as in percentage) I would be paying?

    Thanks

    Buffy x
    Nevertheless she persisted.
  • I have asked my friend, she has not got any clue. She showed me her payslip, she is paying £3.92 a week in nest and takes home £450 after tax. In her payslip she is advised to direct questions about the deductions to nest on 0300 020 0090. You can also try to register on their website where you will get all the details regarding your nest pensions. Once you are enrolled you will get a welcome letter and more infor. Hope this helps.
  • jonewer
    jonewer Posts: 1,485 Forumite
    So glad you asked this question, I am an agency worker now. I got an e mail today telling me about this pension but I can't find any where that tells me how much I would pay, money is already super tight on my salary, I don't really know anything about this scheme and previously had a teacher pension for about 7 years. I had heard about this scheme but at the time was in a contract job so didn't pay any attention.

    So is there somewhere that can tell me how much (as in percentage) I would be paying?

    Thanks

    Buffy x

    1% minimum at the moment. This phases up to 5% in a few years time.

    There is no maximum employee contribution.

    You can choose to reduce your contributions below the minimum but this would render you liable to automatic re-enrolment in 3 years time.

    You can chose to opt out but bear in mind if you do this, you are turning down free money from your employer.
    Mortgage debt - [STRIKE]£8,811.47 [/STRIKE] Paid off!
  • i'm paying 6 quid a month out, so don't really think it is going to make a massive fortune in 50 years time. I recogn i will have paid out 3600 in 50 years so would probably get a few quid a month on retirement. I do wonder if it is worth it at times
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • jtr2803
    jtr2803 Posts: 3,232 Forumite
    i'm paying 6 quid a month out, so don't really think it is going to make a massive fortune in 50 years time. I recogn i will have paid out 3600 in 50 years so would probably get a few quid a month on retirement. I do wonder if it is worth it at times

    But what is your employer paying in and is your tax relief going directly into your pension fund? It all adds up :)

    Very happily married on 10th April 2013 :D
    Spero Meliora
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  • Is there a point where it is not beneficial to be opted in ( if you don't earn enough?)

    I read that you were automatically enrolled if you earned above x. I work for several agencies and I have been auto- enrolled to NEST with the agency that provides me with the least work. Other agencies seem to be signed up with NOW pensions but I haven't been auto enrolled yet as far as I can tell.
    I anticipate the annual salary and therefore contributions would be negligible on the grand scheme.

    So should I opt out and go down a SIPP route or would that be throwing away money ( contributions from employer and tax relief)?

    Would be grateful for thoughts while I look into this properly. I have a month to opt out. Thanks.
  • dunstonh
    dunstonh Posts: 118,565 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is there a point where it is not beneficial to be opted in ( if you don't earn enough?)

    With pension credit that was a possibility. However, with pension credit being abolished with the new single state pension, that is not the case for anyone retiring after that.
    So should I opt out and go down a SIPP route or would that be throwing away money ( contributions from employer and tax relief)?

    You wouldnt throw tax relief away as you still get that. However, you would lose the employer contribution. You would also be classed as an opt-out and many providers will not accept pension business from opt-outs without an IFA signing off on it first. IFAs would find it difficult to recommend you opt out with free money from the employer being involved and would 99% of the time tell you to opt in.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bluebell321
    bluebell321 Posts: 122 Forumite
    edited 27 October 2013 am31 11:33AM
    dunstonh wrote: »
    With pension credit that was a possibility. However, with pension credit being abolished with the new single state pension, that is not the case for anyone retiring after that.



    You wouldnt throw tax relief away as you still get that. However, you would lose the employer contribution. You would also be classed as an opt-out and many providers will not accept pension business from opt-outs without an IFA signing off on it first. IFAs would find it difficult to recommend you opt out with free money from the employer being involved and would 99% of the time tell you to opt in.
    Thanks. That's helpful.
    So what would happen at retirement age if the pot is as tiny as I anticipate it to be? Can it just be drawn out in full rather than the usual plans people might make with a reasonable size pot?
    Can I just view it as another form of investment fund ( about to embark on the investing learning curve as well)

    And....
    If I eventually get enrolled with two providers, can I request to be with just one or am I stuck with whichever provider each agency has chosen?
  • dunstonh
    dunstonh Posts: 118,565 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    So what would happen at retirement age if the pot is as tiny as I anticipate it to be?

    There are two small fund options. One is called stranded pots and the other is called triviality. The latter allows you draw the pension as a lump sum, minus tax if the value of all your pensions is under £18000.
    If I eventually get enrolled with two providers, can I request to be with just one or am I stuck with whichever provider each agency has chosen?

    In most cases, the employer will only pay into the scheme they are linked to. Some small employers may pay directly to the scheme of your choice.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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