Friends Life V. NEST

Trevor_Danby-Platt

I have a Friends Life (New Generation Personal Pension Plan), have put in £15k, my employer £26k in 5 years and its now worth £54k. My employer is now moving to the NEST pension from April, but do I opt out and stay with FL or look at other options?
Regards
T.

dunstonh

Friends Life V. NEST

That has the appeal of Sunderland vs Stoke.

My employer is now moving to the NEST pension from April, but do I opt out and stay with FL or look at other options?

Opting out will mean you cease to benefit from the employer contribution. So, no free money. That is not a desirable option. Whilst NEST is not a great option, the free money makes it a no brainer. It has no impact on your FL pension as that can stay there.

xylophone

Your employer is obliged to offer a pension scheme compliant with the auto- enrolment rules.

https://www.citizensadvice.org.uk/debt-and-money/pensions/types-of-pension/workplace-pensions/

What exactly is happening at your workplace?

Is the FL pension your own personal pension and you arranged for your employer to make these contributions?

Or is it a case that there is currently a workplace scheme in place with FL and your employer is changing to NEST?

Is there a proposal that there will be a contribution to NEST and a contribution to an employee's personal scheme?

Or is it the case that any employee opting out of NEST will continue to have a contribution to a PP?

And see

https://forums.moneysavingexpert.com/discussion/5547302

Trevor_Danby-Platt

I will not opt out completely, either opt out of NEST and continue with current FL plan or change to NEST.

Trevor_Danby-Platt

Yes, the FL plan is something that I brought from a previous employer. Understand all the auto enrolment stuff, its just trying to understand which horse to back.

dunstonh

Trevor_Danby-Platt wrote: »

I will not opt out completely, either opt out of NEST and continue with current FL plan or change to NEST.

Are you saying that your employer will pay into the FL scheme?

Trevor_Danby-Platt

Yes, matching my contribution

dunstonh

Trevor_Danby-Platt wrote: »

Yes, matching my contribution

That is unusual and very lucky. The FL pension probably has the better fund range and no initial charges although I expect the annual charge will be higher than NEST which is a really basic version with an initial charge.

Both are the type of scheme that you are probably best only getting the matched money on from the employer but paying any extra above that directed to your own individual scheme. However, if you want just one scheme then there isnt much in it. You are comparing two bottom of the table type teams here!

bigadaj

dunstonh wrote: »

That has the appeal of Sunderland vs Stoke

It's because they are red and white and black, confusing.

So which provider is the gold (or canary yellow?) one.