New to pensions - Stick with Nest or go elsewhere + other questions

Corbula

Hi everyone, I'm new here and have joined seeking advice about pensions.

I have an old pension from 2013 at a previous employer, which was only paid into for around 6 months before the place closed down. So there isn't much in that around £500. This was with HSBC before it got moved over to ReAssure. This pension hasn't been touched since I left.

The same thing happened at my next employer. I worked there as a contractor for around 9 months and got put into their pension which was with Nest. This only has around £300 in it and hasn't been touched in a couple of years since I left.

My current employer doesn't have a pension at the moment so I'm weighing up my options, as I'm nearly 27 I should have a proper pension now and don't know what my employer is going to do yet.

Does anyone have any experiences with Nest? What sort of investment returns have you seen with them?

Would you recommend other providers over Nest that have seen good returns and cheap charges?

I'm just looking for general advice really about how I should carry it on myself until something gets sorted.

Thanks all.

xylophone

My current employer doesn't have a pension at the moment

https://www.gov.uk/workplace-pensions/joining-a-workplace-pension

By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.

When is the staging date?

Your new employer might choose NEST?

https://www.nestpensions.org.uk/schemeweb/NestWeb/public/members/contents/your-retirement-savings.html

At the moment, you cannot transfer out of NEST but this is supposed to be changing from April.

dunstonh

Does anyone have any experiences with Nest?

Its a basic option aimed at small employers who cannot get access to the insurance company group schemes.

What sort of investment returns have you seen with them?

NEST is not really for an investor who cares about investment returns. Simple and boring.

Would you recommend other providers over Nest that have seen good returns and cheap charges?

its not your choice. It is your employer's choice. You certainly wouldn't pick NEST for an individual scheme. Their market is the auto-enrolment side.

Corbula

Thanks. It's a small family business with only a few employees so I've no idea when auto enrollment will come in or if I would be enrolled into it. The same with I don't know who they will pick.

I know for the auto enrollment the provider is down to the employer. I was thinking on a personal level until (and if) my employer has auto enrollment.

xylophone

Thanks. It's a small family business with only a few employees so I've no idea when auto enrollment will come in or if I would be enrolled into it.

See link in 2 above.

You could start a personal pension if you wish and it may be possible to transfer in the Reassure pension.

A simple stakeholder might do for the moment?

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

Corbula

Thanks. If I got a stakeholder, and I'm still in the same position in say a year would I be best to move to a personal pension instead of a stakeholder?

xylophone

In a year's time your employer should have a scheme? Have you asked about this?

neilvw

Assuming they're not a newly-formed company, they should be "staging" (i.e. auto-enrolling you, if you are eligible in terms of age and salary) by 1 April 2017 at the latest. I think they have the right to impose a waiting period of up to 3 months after that.

Corbula

No I've not asked about it as in my situation it wouldn't be right to do so. I'm going on the assumption that there won't be one as no one else there would have one even if offered. I've got a feeling there there will be some eligibility or reason not to have one.

I am eligible with my salary and age, it's not a new company either.

I might be surprised though and be enrolled but I will have to wait and see for that.

I just wanted some advice what I should to until then and be prepared with both outcomes. Rather than in a years time still be looking for a pension myself.

Thrugelmir

Corbula wrote: »

I'm going on the assumption that there won't be one

The employer has no choice in the matter. Failure to comply will result in potentially heavy penalties. Your employer will most certainly be aware of the requirement.

There's no harm is asking politely.

MPD

Corbula wrote: »

No I've not asked about it as in my situation it wouldn't be right to do so.

Would you ask if they started to withhold 1% of your contractual salary?