Salary Sacrifice into NEST

SlaveToMyCats

I am considering making additional contributions to a NEST pension on a salary sacrifice basis, as I will save a significant amount of tax. I also some way below the size of pension pot I should have at my age.


Is there anything to beware of with NEST? The 'contribution fee' seems very high, and I worry this will mean that I have to leave money in there for some time before moving out into a SIPP. The contribution fee is obviously still a lot less than I'd pay in tax if I didn't contribute the money to NEST.

JoeCrystal

While the contribution fees are high, the annual management charge is 0.3% which is better than many pension schemes charges like 0.75%, for example for default funds in auto-enrolment schemes.

But the benefits you get from salary sacrifice will outweigh the charges, especially if the employer shares their NI savings.

Albermarle

I am considering making additional contributions to a NEST pension on a salary sacrifice basis,

AS NEST is presumably your workplace pension , then you have no choice if you want to benefit from the salary sacrifice arrangement.

Is there anything to beware of with NEST? The 'contribution fee' seems very high, and I worry this will mean that I have to leave money in there for some time before moving out into a SIPP. T

The fee structure does mean it is better to leave the money there for a few years to get a low average fee.
For what reason would you want to move the money to a SIPP ?

SlaveToMyCats

My logic is simply that nest seems like a bad deal vs Vanguard etc.



But the arguement that the platform fee is quite low maybe means I can simply leave it where it is. After all I'll have paid the contribution fee already!