Autoenrollment questions

patricia1066

My employer needs to autoenroll me into a pension, but hasn't got any pension arrangements yet. I saw that NEST seems to have been designed for this situation, low administration required and low charges for a pension plan.

A SIPP is an alternative, but would involve a big learning curve.

Are there any other options to consider that would be easy to administer?

xylophone

http://www.thepensionsregulator.gov.uk/en/employers

http://www.thepensionsregulator.gov.uk/en/employers/duties-checker/outcomes/i-am-an-employer-who-has-to-provide-a-pension/choose-a-pension-scheme-or-check-your-existing-one/

might help.

dunstonh

A SIPP is an alternative, but would involve a big learning curve.

Think of NEST and a SIPP as being at totally opposite extremes.

Are there any other options to consider that would be easy to administer?

You dont get to pick. Your employer does.

patricia1066

Hi dunstanh my employer asked me to sort it out, so I will present the options and he will choose. I will then be responsible for administration.

Thanks xylophone the list on the pension regulator site is useful. Quite a variety of charging structures.

As a general rule, does every pension have to allow drawdown now?

An aviva rep said NEST add charges for drawdown, they don't. NEST won't let me take my pension pot to another employer, aviva will.
I asked NEST to confirm this but their agent was unable to make a sensible comment, relying on repeating the amc and contributions charge. Not impressed at all with them.

dunstonh

An aviva rep said NEST add charges for drawdown, they don't.

Correct. They dont. That is because NEST is barred from entering the drawdown market and that isnt going to change any time soon.

patricia1066

It looks like Autoenrollment is optional due to salary below£10k and not suited to my circumstances, see my post on starting a pension at 53, so I will end the thread.
Thanks to all who helped.

dunstonh

But will the employer still make the contribution to it if you decide to join?

Free money shouldnt be turned down if it is available.

xylophone

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

as it may still be possible for you to join and your employer may need to contribute.

patricia1066

Yes, employer agreed to put 5% into a PP. I read the link and if the employee earns less than £10k Autoenrollment is not required. An Occupational pension would not have any tax relief added as I dont have other income, and wont pay tax.