We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Nest or ISA

loulou41
loulou41 Posts: 2,871 Forumite
Currently my son is doing casual work for an Agency. I want to save £50 in his nest pensions every month or make a single contribution. He has only got £150 in his pot. I would like some advice whether it will be worth doing as if I start saving £50 monthly now even if he does not work. How much will be there in the pot and with the commission and admin fees I wonder whether it will be worthy. Pl can you advise as the other option is for me to save that money in an ISA. Can the pot be less than the amount contributed on retirement? Thanks

Comments

  • xylophone
    xylophone Posts: 45,428 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    In the circumstances, perhaps you could give your son the £50 to save into a regular savings ISA and he could use the lump sum to contribute to a pension when his job status is more certain?
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 30 December 2013 am31 2:37AM
    It's not worth paying any more into NEST than the amount it takes to get employer matching. If you want to make extra pension contributions, do it into a different pension scheme that has fewer restrictions and better investment choices at lower cost than NEST.

    A pension or S&S ISA pot can be less than the amount contributed on retirement but it is extremely unlikely if it's being done with regular contributions over more than fifteen years. By that point the chance of being better off than cash will have reached at least 99%.

    For a person on means tested benefits pension pots don't count but ISA pots in their name are considered savings for the means test. That means that for those who may end up depending on means tested benefits it is better to use a pension of some sort for retirement investing. Alternatively, you could invest in your own name and ensure that your will designates him as the beneficiary of the money.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.4K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 241K Work, Benefits & Business
  • 617.3K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.