Can you move your pension pot out of NEST to a SIPP?

shawz007

Hi,

I'm on the bog standard government scheme at my company. I don't like the setup whereby I cannot manage my pension and it is something of a black box. I don't believe I can make my company pay into a SIPP instead, so I thought I could simply transfer the pot out of NEST periodically. It looks possible in theory but NEST's own literature states you have to stop paying into the scheme, but nothing by the looks of it is there to hinder you simply stopping it for a few days to allow the transfer out and then starting it up again.

That way I could periodically send lump sums to the SIPP and not hinder the workings of the Tax relief and Company contributions. Right? Or too good to be true?

HappyHarry

shawz007 wrote: »

Hi,

I'm on the bog standard government scheme at my company. I don't like the setup whereby I cannot manage my pension and it is something of a black box. I don't believe I can make my company pay into a SIPP instead, so I thought I could simply transfer the pot out of NEST periodically. It looks possible in theory but NEST's own literature states you have to stop paying into the scheme, but nothing by the looks of it is there to hinder you simply stopping it for a few days to allow the transfer out and then starting it up again.

That way I could periodically send lump sums to the SIPP and not hinder the workings of the Tax relief and Company contributions. Right? Or too good to be true?

NEST do not do partial transfers. This means that you would need to be closing your NEST pension, and asking your employer to set you up a new one each and every time you transfer. You should talk to your employer first.

See NEST factsheet here.

greatkingrat

It would take a lot longer than a few days to complete the transfer. You would likely miss out on at least one month's employers contributions while you are transferring out. Plus depending on your company policy, they don't have to let you rejoin immediately if you keep opting out and opting back in again.

Pension_Geek

It may be easier to ask if the company can direct contributions to a SIPP of your choice.

JoeCrystal

It may be best to wait until you left your job and then transfer it out. There is no point having a hassle of doing the paperwork until then.