Standard Life workplace pension

Dawn1966

My OH has recently been auto enroled in his workplace pension with Standard Life. He wants to increase his contributions and the employer contribute more too.
Should he amend the contribution now or wait until the Coronavirus calms down and the markets stablilise. He has 14 years until pension age.
Also he has a small Nest pot - about £1000 value would it be wise to transfer this into the new pension?
Thanks.

[Deleted User]

What he is invested in - a Lifestyle pension? and what is his target retirement date set to
What are the charges for his workplace pension versus the charges for the Nest pot?

Albermarle

Should he amend the contribution now or wait until the Coronavirus calms down and the markets stablilise. He has 14 years until pension age.

For all we know the markets may have already stabilised . Monthly contributions even out the ups and downs so best just to start contributing asap.

dunstonh

Should he amend the contribution now or wait until the Coronavirus calms down and the markets stablilise.

What you have effectively asked is should he buy his investments whilst they are cheaper to buy or wait until they are more expensive and buy them then.

Periods of loss are great news for those paying in monthly. Without these negative periods, he would make less money in the long term.

greatkingrat

If the employer will match the increased contributions, then definitely start paying in as soon as possible. If you pay an extra £100, the employer pays in £100 and you get £25 tax relief, total £225. Even if share prices fall further, you will still end up with much more than the original £100 you contributed.

Dawn1966

Deleted_User said:

What he is invested in - a Lifestyle pension? and what is his target retirement date set to
What are the charges for his workplace pension versus the charges for the Nest pot?

It's the Passive Plus 3 - target retirement date is 2034 (68 yrs)
Charges are 0.474% annual versus 1.8% Nest charge.
Thanks all for your comments. Just need to decide what to do about Nest now.

Dawn1966

greatkingrat said:

If the employer will match the increased contributions, then definitely start paying in as soon as possible. If you pay an extra £100, the employer pays in £100 and you get £25 tax relief, total £225. Even if share prices fall further, you will still end up with much more than the original £100 you contributed.

He will be paying 8% of salary, employer will pay 10%

LHW99

Dawn1966 said:

Deleted_User said:

What he is invested in - a Lifestyle pension? and what is his target retirement date set to
What are the charges for his workplace pension versus the charges for the Nest pot?

It's the Passive Plus 3 - target retirement date is 2034 (68 yrs)
Charges are 0.474% annual versus 1.8% Nest charge.
Thanks all for your comments. Just need to decide what to do about Nest now.

I think its only 1.8% initial with Nest, after that its lower - 0.3%?

Dawn1966

Yes I think so LHW99.