NEST Pension

Castle_Rock

Apologies if this has been mentioned many times but I don't know where to start. My employer sent me a letter regarding investing in the company government pension(NEST), is it worth doing & are there any dis-advantages of not signing up?

hyubh

Castle_Rock wrote: »

My employer sent me a letter regarding investing in the company government pension(NEST), is it worth doing & are there any dis-advantages of not signing up?

Your employer would have budgeted for the statutory minimum employer contribution; were you not to join the pension scheme, then you lose that money.

xylophone

are there any dis-advantages of not signing up?

Loss of employer's contribution?

https://forums.moneysavingexpert.com/discussion/comment/64430672#Comment_64430672

http://www.money.co.uk/article/1008341-nest-pensions-your-questions-answered.htm Not all that recent but might be worth a look.

atush

Disadvantages are :


Loss of FREE money (employer's contribution)


Loss of Tax relief (ie you put in 80, the govt adds 20- does your savings acct do that?)


You retire as a poor person living on the margin instead of having a bit extra to make you OK, or even more to make you comfortable.

System

We have 13 employees and are not actually obliged to introduce this scheme until 2017. But we decided to start anyway, on a voluntary basis, and all but one staff member have jumped at the chance. That one is 62 and retiring soon.

The contrast with a few years ago when stakeholder pensions were being promoted is dramatic. Not a single person was interested then.
Now, they are all eagerly asking whether they can increase their contributions, and would we match them?

The only doubt is whether Nest is actually going to have the expertise to invest the money sensibly. But there isn't a lot of choice for a very small scheme, and improvements to the Nest rules are promised.