NEST versus SIPP

grant2

Hi Everyone,

my company have recently enrolled me into NEST but after doing some research / googling of them there seems to be an opinion that they are a extremely basic provider and reviews of them seem very doubtful and my question is..

is it worth pumping extra amounts on money into this provider or is it better to do the minimal amount to NEST and have a SIPP where you can separate out where your money goes and hopefully get better growth of your pension?

If NEST are a basic provider surely after you have put in alot of extra cash and see what it has accumulated to your going to be disappointed?

ischofie1

I'd put the minimum in to Nest & the rest elsewhere.
Why a SIPP? This is the opposite end of the spectrum to a SIPP, i.e. For someone with experience in investing.
Why don't you consider a PP which may be more suitable.

dunstonh

NEST versus SIPP

A bicycle vs a Ferrari.

is it worth pumping extra amounts on money into this provider or is it better to do the minimal amount to NEST and have a SIPP where you can separate out where your money goes and hopefully get better growth of your pension?

If you are going to utilise the extra options of a SIPP and therefore make the higher costs justifiable then fair enough. As alluded to above, these options are at either extreme.

If NEST are a basic provider surely after you have put in alot of extra cash and see what it has accumulated to your going to be disappointed?

Do not associate simplicity with poor outcomes. Most people in the UK are unable to build and run their own portfolios and require a simple option. You haven't told us what you would invest in within the SIPP. You could build a perfectly fine bespoke portfolio. Or you could put a global index tracker in it and find yourself paying more in charges than NEST or you could be like the poor soul who posted earlier today that he invested in bamboo farms and has basically lost the lot.

xylophone

you could be like the poor sole

Floundered in the mire?:(

grant2

thanks for the replies...i do have a another personal pension from Aviva which is Aviva Pensions Multi-Manager 40-85% Shares - is this an ok fund on performance? - not entirely sure how to track it properly..

Elijah_Bailey

You can check the fund growth on a site like trustnet.com

Seems solid enough but you should find out what your being charged by Aviva for the pension and the fund inside. It is probably about 1.5% in total but that's just a estimate. You can reduce the charges by using a DIY approach but then you have to do all the management work, not Aviva.

If you want to start a SIPP, then sites like Monevator.com are required reading. It is a good start in educating yourself about types of funds, fund costs and SIPP platform costs. Please do not leap in before you do some research.

NEST is a solid, no nonsense and fairly basic private pension that does the job it was set up to do.

dunstonh

Most Aviva internal funds range from 0.2% to 1.5% depeding on the age of contract and the fund based discount. Modern contracts tend to be around 0.4%. Older ones tend to be closer to 1%.

Most Aviva internal multi-asset funds tend to be close to benchmark. The one you have is performing better than benchmark.