pension payment

jamesd

Assorted problems with NEST:

1. Ban on transferring in or out until age 55. With assorted discussions and moves that may eventually change this, but it hasn't happened so far.
2. Extremely poor lifestyling choices that place new joiners in low performance investments initially then do the same again way before retirement, so that many could spend half of their accumulation time in low growth options.
3. Extremely limited investment options and no way until age 55 to get out of them and into a broader selection.
4. Costs higher than some alternatives.
5. Cap on amount that can be paid in. With moves that may eventually cause this cap to be removed but it hasn't happened yet. Which means that quite a few companies will need either two plans, one NEST, or just one, not NEST.

There are at least two other schemes who aim at the small business auto-enrolment market and either of them looks better to me at the moment.

Overall the combination of lock in, poor lifestyling, poor investment range and costs mean that I think that NEST is the lemon of the three major low end auto-enrolment providers.

What NEST has going for it is that it has no choice but to accept any employer, down to a household having a part time nanny within the income range and having to do something but not caring what so long as it's legal.

Gram_Parsons wrote: »

What's the viewpoint on The People's Pension from B&CE? That's who my work pension is with. Think it was roughly a year ago we were auto enrolled. I upped my contribution from a measly 1% to 5% but my employer weren't prepared to increase their side.

Limited investment choices but no ban on transfers or upper contribution cap so anyone who wants more can just transfer out to get more. If you want investment choices rather than one good mixed fund this is the one of the three I'd suggest. Your employer did well. If you're not in a salary sacrifice arrangement and know how to use more investment options you might consider putting the extra above what will be matched into a place that gives you those options.