Transfer

Bryando

Hi,
I have a pension pot with nest pension. My new employer uses Friends Life. Can I transfer nest pension into the Friends Life?

If I decline auto enrollment with my new employer but just place my own contributions I lose the tax relief and money from employer-this correct?

AnotherJoe

Bryando wrote: »

Hi,
I have a pension pot with nest pension. My new employer uses Friends Life. Can I transfer nest pension into the Friends Life?

Most probably. See here https://www.nestpensions.org.uk/schemeweb/NestWeb/public/memberhelpcentre/contents/how-can-i-transfer-money-in-or-out-of-nest.html

If I decline auto enrollment with my new employer but just place my own contributions I lose the tax relief and money from employer-this correct?

No, and yes, in that order, but why would you do that?

Bryando

I have little knowledge on pensions. My mind says having numerous pots with little in them is pointless come to retirement. Better to have one with a decent amount.

So I was thinking just keep with nest pensions and place in my own contribution per month. Only just opened that but will be moving employer.

TcpnT

You don't say what % contribution your new employer would make - but however small or large it is you would be mad to turn down what is in effect free money.

While there may be some minor benefits in terms of convenience or charges in having all you pensions consolidated it is a minor consideration. Your first priority should be to maximise contributions, especially those that come at no cost to yourself

Bryando

Yeah I see the employer's contribution as a pay rise via the backdoor. As you say be mad not to. But this part of me just thinks it's not logical having various pots as I change employer a lot.

dunstonh

But this part of me just thinks it's not logical having various pots as I change employer a lot.

So, have an individual pension that you just transfer the ex employer pot to every time you move.

AnotherJoe

What dunstonh says. Probably this will become a 'norm' going forward for many. Sign up to the current deal from new employer to get the benefits, fold the previous pension into a personal pension that is the accumulated result of all previous pensions.

This is only an admin convenience though, apart perhaps from a little extra cost in admin, the pension benefits you can receive when you retire with ten or one pensions are the same.

Your opening approach is a bit like you saying you feel richer if you have a £20 note in your wallet instead of a mixture of pounds coins, fivers that adds up to £50. Thats what will be the end result of you refusing over many years the employer putting the odd 20p or £1 coin in there every month "as its pointless".

LHW99

If you change jobs frequently you may end up with another employer that uses NEST, so that fund could be "re-awakened" at that time perhaps, if you haven't moved it.