Auto enrolment in NEST?

dream_on

Hi,
I retired from my NHS post in August, taking my lump sum, pension £16,910 per year. I obtained another job in NHS salary £27.000 for 18 months taking me to state pension age. I'm not sure if I will retire full time at that point. I have received a booklet telling me I have been auto enrolled in NEST
Is this a good thing to continue? How would I know how much my employer (NHS) is contributing? It says I can put extra money in which I can afford as my salary plus pension is more than I was earning full time. Would this be a good idea?
I am 61 and have complied with the NHS pension rules.
I am not sure which tax bracket I am now in.
Thanks

dunstonh

Is this a good thing to continue?

yes. The alternative is turning down free money.

How would I know how much my employer (NHS) is contributing?

Either read the documentation supplied or ask your employer.

t says I can put extra money in which I can afford as my salary plus pension is more than I was earning full time. Would this be a good idea?

Depends on your financial needs and objectives. It could be but it may not be.

Your_Hero

dream_on wrote: »

Hi,
I retired from my NHS post in August, taking my lump sum, pension £16,910 per year. I obtained another job in NHS salary £27.000 for 18 months taking me to state pension age. I'm not sure if I will retire full time at that point. I have received a booklet telling me I have been auto enrolled in NEST
Is this a good thing to continue?

Free money, why not?

How would I know how much my employer (NHS) is contributing?

It should tell you. The minimum they must pay is 1% of your salary currently (rising to 3% ultimately). But your employer may be paying more.

Currently, an absolute minimum of 2% total contribution must be paid (e.g. 1% from employer, 1% from you).

I am not sure which tax bracket I am now in.
Thanks

Your pension + your employment income makes you a higher rate tax payer (40%). So it would be a good idea to pay more into the pension.

dream_on

Quote:
Originally Posted by dream on View Post
Hi,
I retired from my NHS post in August, taking my lump sum, pension £16,910 per year. I obtained another job in NHS salary £27.000 for 18 months taking me to state pension age. I'm not sure if I will retire full time at that point. I have received a booklet telling me I have been auto enrolled in NEST
Is this a good thing to continue?
Free money, why not?

Quote:
How would I know how much my employer (NHS) is contributing?
It should tell you. The minimum they must pay is 1% of your salary currently (rising to 3% ultimately). But your employer may be paying more.

Currently, an absolute minimum of 2% total contribution must be paid (e.g. 1% from employer, 1% from you).

Quote:
I am not sure which tax bracket I am now in.
Thanks
Your pension + your employment income makes you a higher rate tax payer (40%). So it would be a good idea to pay more into the pension.
Thank you, so if I put enough money into NEST i don't pay 40% tax?
How much would I need to put in? Sorry, never had to deal with this before

Your_Hero

Enough to bring you down to Basic rate tax, i.e. £31,866 plus your personal allowance (£10,000 still I assume).

Without knowing your other income it's hard to say. But assuming nothing else, the minimum you should pay is about £2,000 gross, which is £1,600 net. Claim a further £400 tax rebate by phoning/writing to HMRC (don't need to complete self-assessment if this is all).

But NEST currently has an annual contribution limit of £4,600, so it really depends on what your and your employer's contributions are.

dream_on

Thank you, so if my total income is a maximum of £45000 I could put extra £3500 in, assume nhs put 1% equals £270 and they take 1% £270 out of my salary before I get it?

Haven't any confidence in payroll at present since its external now to local organisation, had lots of issues re processing pension etc so any advice welcome

Your_Hero

Sounds about right. Ideally, if you don't need the pension income (if £27,000 is enough to live on anyway), either pay most/all of that into the pension. It will just be spent if you don't. Alternatively, you could open a NISA with some of the income and diversify the products you have.

unclebumpkin1

Hi.

I'm temping but my temp job recruitment agency will automatically enrol me into pension from mid-january. I think under new government rules. Just wanted advice - about whether it is worth putting extra money in or pulling the money out totally (if that is easy to do). I know very little about this subject. Think I may be start things myself earlier before automatic enrolment - not sure though. This is just a temp job and it very likely may even end in January.

Just wanted some advice as I know so little about this all.... thank you.

It is with NEST.

dunstonh

unclebumpkin1 wrote: »

Hi.

I'm temping but my temp job recruitment agency will automatically enrol me into pension from mid-january. I think under new government rules. Just wanted advice - about whether it is worth putting extra money in or pulling the money out totally (if that is easy to do). I know very little about this subject. Think I may be start things myself earlier before automatic enrolment - not sure though. This is just a temp job and it very likely may even end in January.

Just wanted some advice as I know so little about this all.... thank you.

It is with NEST.

answered on your triplicate post https://forums.moneysavingexpert.com/discussion/5141858