Nest Pensions - Transfer out not possible
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stunews
Posts: 34 Forumite
So I have a Nest pension from a job a couple of years back.
I see that the contributions fee is a bit expensive compared to another option I'd like to go with, so I'm never go to contribute again.
I think I'd rather just transfer it to another scheme.
Here's the kicker - you can't..
Didn't read that before I signed up for it.. Oh wait, I didn't sign up for it. I was autoenrolled..
Are they really trying to say this is legal?
I see that the contributions fee is a bit expensive compared to another option I'd like to go with, so I'm never go to contribute again.
I think I'd rather just transfer it to another scheme.
Here's the kicker - you can't..
Didn't read that before I signed up for it.. Oh wait, I didn't sign up for it. I was autoenrolled..
Are they really trying to say this is legal?
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Comments
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Yes it is legal.
Remember the advantage of auto-enrollment is that the employer contributes, this means it is still a "good idea".
There are better schemes but NEST is still better than not taking advantage of the employer contributions, especially as the minimum employer contributions are due to increase in coming years.0 -
It's legal, laws were specifically written to allow NEST to do this.
There's talk of this possibly changing either late in 2015 or around 2018. Those who are 55 or older can already transfer out.0 -
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xylophone, that's now a bit out of date. See this for a more recent update that could remove the individual transfer restriction from 1 October 2015.
More recently a couple of Lords tabled an amendment to the Pensions Bill that would require removal of the NEST restrictions within a month of the Bill becoming law.
Still no actual law so the restrictions remain but at least it's heading in the right direction.
Stunews, the best you can do is keep waiting and watching for whenever/ifever the restrictions are removed. While the current government seems to want to do that there's no guarantee that the next one will.0 -
Before knowing you want to opt out because you can't transfer out you have to know that you can't transfer out. That information is available if you know where to look but it's not prominent. It's most likely that a person will only discover it when they try to transfer out and are told that they can't.0
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There is nothing to stop your employer choosing a different (better) provider than NEST0
This discussion has been closed.
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