Nest Pension at 51 years old

easymoney999

Hi, I have been enrolled in a Nest workplace pension.
I'm 51 years old have no other pensions except for the state.
I work approx 30 hours per week on 7.20 per hour.
My employer contributes the bear minimum to the pot.

I have been told I can add myself additional contributions.

My question is, is it worthwhile doing so?

I was thinking maybe adding 100.00 per month myself.

dunstonh

My question is, is it worthwhile doing so?

Do you want free money from the employer or not?
What do you plan to live on in retirement?

xylophone

My employer contributes the bear minimum to the pot.

Is he snarling as he does it?:)

https://www.nestpensions.org.uk/schemeweb/NestWeb/public/members/contents/costs-and-contributions.html

You could do this to boost your retirement savings - your other choice would be to open a personal/ pension/stakeholder.

Example http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

xylophone

Do you want free money from the employer or not?

He is getting the employer contribution under the scheme - the employer would not match the additional contribution he is thinking of making.

My employer contributes the bear minimum to the pot.

I have been told I can add myself additional contributions.

If he wishes to make additional contributions, it is a question of looking at charges/convenience when considering adding to NEST or using a personal pension to run alongside?

bigadaj

easymoney999 wrote: »

Hi, I have been enrolled in a Nest workplace pension.
I'm 51 years old have no other pensions except for the state.
I work approx 30 hours per week on 7.20 per hour.
My employer contributes the bear minimum to the pot.

I have been told I can add myself additional contributions.

My question is, is it worthwhile doing so?

I was thinking maybe adding 100.00 per month myself.

Probably not, contribute enough to get the employers matching contributions only I would say.

It depends on your wider situation of course, do you own your own house, mortgage, other income etc

£100 a month is obviously a high proportion of your current income, and is above the minimum levels for most plans so alternatives which are cheaper and offer better investment choices should be available. Your £100 net would be grossed up to £125 by tax relief, and given your age you could access it in four years so it wouldn't be locked away for too long. Assuming you have a reasonable cash reserve for emergencies then another pension is a good alternative.

hugheskevi

Also, NEST take 1.8% contribution charge on all contributions. If a member has many years to retirement this is not particularly significant, but if there is only a short time to retirement then the charge can be much higher than pensions charging a % of pot each year.

EdGasket

xylophone wrote: »

Is he snarling as he does it?:)

Should pay for the 'bear necessities' of life, oh yeah

easymoney999

No mortgage, Have savings.

So after 55 years old I could withdraw some or all of the pot ?

dunstonh

easymoney999 wrote: »

No mortgage, Have savings.

So after 55 years old I could withdraw some or all of the pot ?

Yes. But why would you want to if your planning is currently so bad?

bigadaj

dunstonh wrote: »

Yes. But why would you want to if your planning is currently so bad?

For many it may be useful to know that you can in extremis, eventhough you shouldn't.

After all for younger people the main drawback in pensions is the fact it is locked away for decades, if it's available in only a couple of years then that is a major drawback addressed.

greenglide

After all for younger people the main drawback in pensions is the fact it is locked away for decades

.... and for many people the fact that you cannot access it until 55 (at present) is a positive advantage because sticky fingers cannot spend it.

It is, after all, supposed to provide income in retirement, isnt it?