NEST big contribution

opposing_force

Hi. my pension is with NEST. i contribute into it 8% a month since i was 24. i am 26 now.
anyway I just decided to put in a lump some of 5000. does this benefit me and how ? i think it was a good idea. (im have emergency fund that can last me a full year anyway)

Dox

opposing_force wrote: »

Hi. my pension is with NEST. i contribute into it 8% a month since i was 24. i am 26 now.
anyway I just decided to put in a lump some of 5000. does this benefit me and how ? i think it was a good idea. (im have emergency fund that can last me a full year anyway)

What made you decide to put in a lump sum of £5,000 if you didn't know if it would benefit you or how it would benefit you? Why did you think it was 'a good idea' if you didn't know what it would do for you? What were you hoping it would do? You may find you've answered your own question!

opposing_force

What's with the attitude?
Just wondering if eventually it helps the bigger the amount in there the more it helps compound with interests

BoGoF

It's admirable that you want to pay more into your pension, the earlier you do it the better. However it's important you understand the pros and cons of NEST. By that I mean there may be a better home for any additional contributions you want to make. How much is your employer contributing?

Maybe have a read of this to increase your understanding

https://www.moneysavingexpert.com/savings/discount-pensions/

And read your pension documents from your NEST pension.

Dox

opposing_force wrote: »

What's with the attitude?
Just wondering if eventually it helps the bigger the amount in there the more it helps compound with interests

Putting so much money into an investment with no real idea of why you've done so, or what you hoped to achieve, isn't ideal - and asking after the event rather than before struck me as the wrong way round. It's not 'attitude', but trying to get you to think for yourself and perhaps establish the facts before you take the action.

If you read the information on NEST's website it gives you all the info you need. Worth reading that before making any further big pension investments at such a tender age.

BoGoF

More light reading

https://www.nestpensions.org.uk/schemeweb/nest/members/my-nest-pension/how-does-nest-manage-my-money.html

Do you know which fund you are invested in?

cloud_dog

opposing_force wrote: »

What's with the attitude?
Just wondering if eventually it helps the bigger the amount in there the more it helps compound with interests

Are you a basic rate tax payer? Did you consider the benefit of using a S&S Lifetime ISA instead of adding to the NEST pension?

opposing_force

Never really understand any of that sipp,SIS and vanguard jargon it does my heading. I'm taking home just under 3k a month after deductions and can save 2k a month easy. I prefer to fire and forget so to speak. happy with nest and high risk option for invest. so im just gonna keep firing It in there.

opposing_force

I'm putting it in there for my future because earlier the better thank you for informations

cloud_dog

opposing_force wrote: »

Never really understand any of that sipp,SIS and vanguard jargon it does my heading. I'm taking home just under 3k a month after deductions and can save 2k a month easy. I prefer to fire and forget so to speak. happy with nest and high risk option for invest. so im just gonna keep firing It in there.

Well done for doing something but, I'm a little confused now why you posted, or what exactly you are looking to get out of this thread?

randompenitent

Go for it. It may not be the very best investment you could make with the money but putting £5000 away now is something your future self will probably thank you for.

If you have time and the inclination, start doing some reading about ISAs too - another useful place to make savings for later life. There's lots to learn but the good news is that you are starting early so I suspect you have a lot more time than most of the people here.