Advice on setting up my own private pension please?

xylophone

Increasing contributions to NEST would certainly be the easiest option.

The OP has been given the link on how to do this.

He also has links on various other options.

With regard to the transfer of his SL pension into NEST, he has also been given the links concerning this.

As to whether it would be the best course in his circumstances, who can say without comparing one with the other?

The NEST information mentions the comparison exercise and possibly using an IFA.

If the OP is (or should become) a higher rate tax payer, he will need to check out the tax relief process.

Makavelio

So I should just leave my old employer group pension with Standard Life alone which has £10500 and add to NEST? The fees seem quite high with NEST compared to some SIPPS and Personal pensions. Would a SIPP with either a Van Guard Target Retirement 2050 Fund or Lifestyle fund be better option? I could transfer my Standard life to it and keep the nest for the 1% from my employer.

xylophone

Nobody on the board would be allowed to give you advice as to your best course of action.

You need to read through all the information and links and make a decision for yourself (or with the help of an IFA).

You did note that your /your employer's contribution to NEST are expected to increase?

BLB53

So I should just leave my old employer group pension with Standard Life alone which has £10500 and add to NEST?

I am not sure whether you are permitted to transfer the SL pension over to NEST and also not sure whether you can pay in more than the 4% which will take effect from 2019 so be sure to check these points.

Makavelio

BLB53 wrote: »

I am not sure whether you are permitted to transfer the SL pension over to NEST and also not sure whether you can pay in more than the 4% which will take effect from 2019 so be sure to check these points.

How are you getting on with AJ bell as I am not sure to go with them or H&L. I am thinking of transferring my old employer group pension with £10500 into a SIPP and using the Vanguard LS 60 as it has a lot of the same holdings as my passive plus fund 3 with Standard Life. The fees on my Standard life are 1% AMC and 1.025% Fund charge so quite high. Thanks

xylophone

I am not sure whether you are permitted to transfer the SL pension over to NEST and also not sure whether you can pay in more than the 4% which will take effect from 2019 so be sure to check these points.

See links in previous posts.

dunstonh

he fees on my Standard life are 1% AMC and 1.025% Fund charge so quite high. Thanks

That does not sound right. I think you are double counting.

I am thinking of transferring my old employer group pension with £10500 into a SIPP and using the Vanguard LS 60

So, that is paying about 3 times more in ongoing charges than NEST.

BLB53

How are you getting on with AJ bell as I am not sure to go with them or H&L. I am thinking of transferring my old employer group pension with £10500 into a SIPP and using the Vanguard LS 60 as it has a lot of the same holdings as my passive plus fund 3 with Standard Life. The fees on my Standard life are 1% AMC and 1.025% Fund charge so quite high. Thanks

I have been with AJ Bell sipp for 10 years now and have generally had no problems so can recommend. They did change their charges in 2016 but it worked out OK for me as I had moved to drawdown and I just pay £25 p.a. for a one-off payment.

The ongoing platform charges would be 0.25% and then the Vanguard fund charges so it should be less than half the charges you are paying with SL and no more expensive than the ~0.5% nest charges. (I am not sure where the 3x more comes from??)

dunstonh

(I am not sure where the 3x more comes from??)

Nest is 0.3%

OP was saying that he was considering HL. HL is 0.45% for platform charge and the fund charge is 0.24% which is 0.69%. So, its not quite three times but just over double.

SIPPs are also higher maintenance. Remember the first thing the OP said was he wanted something easy. NEST is by far the easiest option as it is already open. It requires no maintenance and has low ongoing charges.

Back to the OP, have you confirmed that the SL charges are 1%? An awful lot of SL plans, especially ex group ones have discounts on the default charge. If you are just going by their factsheet, that may not be the actual charge you are paying. Factsheets show the base charge before discounting.

BLB53

Nest is 0.3%

Does that include the underlying fund charges? Also you do need to include the 1.8% fee deducted from each contribution?