Advice on Auto Enrolment Transfers

sherringham2001

I have two pension schemes that I was auto enrolled onto by the companies I worked for. I firstly have an Aviva Friends Life Long Term Capital Growth FP, and I also have a NEST retirement scheme. I paid into these schemes for about a year each, so they have a similar value. I can't take any of my retirement funds until 2051.

With the Aviva Friends life it says I am paying a 0.59% Annual Management Charge every month and this will happen as long as my funds are in that scheme. I spoke to them on the phone and they said the policy is like stocks and shares and the value can go up and down. With the Nest scheme there is no charge and the fund in there increases with interest.

I am able to transfer my Aviva Friends Life scheme into my NEST scheme with no charge, and to me this appears to be the best answer. I know very little about pensions and wondered if anyone had some advice please? Is the Aviva one worth keeping or should I transfer from it? Would transferring from NEST to Aviva be a better idea? They say on the phone to get financial advice, where can I get this?

Thanks

dunstonh

With the Nest scheme there is no charge and the fund in there increases with interest.

Investment funds do not pay interest and NEST do have charges.

I am able to transfer my Aviva Friends Life scheme into my NEST scheme with no charge, and to me this appears to be the best answer.

Are you sure that is a good idea? With the NEST initial charge and limited investment choice, it is probable that the Aviva option is better.

They say on the phone to get financial advice, where can I get this?

Any local IFA. However, unless the fund values are say £25k plus, it probably isnt worth it. Leaving both where they are would likely be the better option and then consolidate them when leading up to retirement.

sherringham2001

Thanks for the advice. I don't have a clue about these pensions, but it sounds like it is best that I do nothing and leave them where they are for now.

PeacefulWaters

sherringham2001 wrote: »

Thanks for the advice. I don't have a clue about these pensions, but it sounds like it is best that I do nothing and leave them where they are for now.

It might be worth finding out what you're invested in and posting details here.

If your NEST money is in a cash fund earning interest and you're looking at a thirty year timeline switching to a more rewarding fund will almost certainly be a way forwards.

You won't get advice here, but you will get very helpful pointers in the right direction.

xylophone

You have a pension scheme in your new job?

Will the provider accept a transfer in?

sherringham2001

PeacefulWaters wrote: »

It might be worth finding out what you're invested in and posting details here.

If your NEST money is in a cash fund earning interest and you're looking at a thirty year timeline switching to a more rewarding fund will almost certainly be a way forwards.

You won't get advice here, but you will get very helpful pointers in the right direction.

I think it is a cash fun that earns interest. When I spoke to them on the phone, the woman said think of it like a savings account that earns interest.

I have it registered online and when I look up what type my account is, all it says is I pay in, my employer pays in and I get tax relief that is all added to a retirement pot. It then says over time it all adds up, and because of the way they manage my money it should grow faster than the cost of living.

If my previous Aviva Friends Life Long Term Capital Growth FP is more rewarding, would it be possible to have my employer pay into that instead of the NEST?

sherringham2001

xylophone wrote: »

You have a pension scheme in your new job?

Will the provider accept a transfer in?

I've just had a letter and my new job uses NEST too and they will be contributing to my existing account. NEST will accept my Aviva Friends Life Long Term Capital Growth FP, but from the advice I have had on here, it may be best to leave the Aviva one as it is.

dunstonh

I think it is a cash fun that earns interest. When I spoke to them on the phone, the woman said think of it like a savings account that earns interest.

I believe one of their funds is a cash fund but it should not be considered the same as a savings account. Cash funds are temporary homes for money whilst you make a decision or are in the lead upto retirement and intend full withdrawal (inc annuity purchase). They are not meant for long term investing.

would it be possible to have my employer pay into that instead of the NEST?

No.

but from the advice I have had on here, it may be best to leave the Aviva one as it is.

Nothing here is advice. Just discussion.