Stakeholder better than NEST? To avoid contribution fee and low AMC

Agram

Have a Nest pension that no longer receives employer contributions.

It has received annual voluntary contributions of £2880 Net (£3600 Gross).  Which is charged a 1.8% contribution fee, taking off £64.80.  And there's a 0.3% annual management charge too.

So for the long term (another 20 years or so) I'm thinking it's not worth sticking with Nest because of the contribution fee.  And time to consider a change to another stakeholder style pension that has a low annual management charge.

I previously looked at Cavendish Online AVIVA Stakeholder that charged 0.55% on funds up to £49,999.  So one fee less, but end up paying more.

Any suggestions on providers?  Or would simply transferring fund in Nest from Retirement Date Fund to a different fund be a better option?

Marcon

Set yourself up a little spreadsheet and do the sums. If you're 2 years from retirement a hefty fee on each contribution isn't a great idea, but with 20+ years to go, the answer may look different. As for switching within NEST, if you think another option would better suit your needs, then that would make sense.

zagfles

The AMC is low with NEST which makes it quite good value over the long term, very approximately over 10 years 0.3% AMC and 1.8% initial charge is about the same as 0.5% AMC and no initial charge.

dunstonh

Stakeholders are largely a niche option nowadays.   SIPPs, workplace pensions and personal pensions can come in cheaper than stakeholder  Most providers have pulled their SHP. Indeed, you can probably count the remaining ones on one hand.

Albermarle

If you moved to a so called 'low cost Sipp' and with a low cost fund , it would still be minimum 0.5% and more management needed. 

xylophone

Have a Nest pension that no longer receives employer contributions.

 Are you currently contributing to a workplace pension? Would your current pension scheme permit a transfer in?

Or had you looked at https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account?cmpgn=PS0220UKBABSP0001EN&gclid=EAIaIQobChMI6-_R-OvT6QIVl-7tCh08jADBEAAYASAAEgJHt_D_BwE&gclsrc=aw.ds

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions may be worth a look.

Agram

xylophone said:

Have a Nest pension that no longer receives employer contributions.

 Are you currently contributing to a workplace pension? Would your current pension scheme permit a transfer in?

Or had you looked at https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account?cmpgn=PS0220UKBABSP0001EN&gclid=EAIaIQobChMI6-_R-OvT6QIVl-7tCh08jADBEAAYASAAEgJHt_D_BwE&gclsrc=aw.ds

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions may be worth a look.

Thanks. I'm only considering managed or limited fund choice at this stage.
Looked at Nutmeg and the 0.75% fee works out worse than Nest price per year.  So I'm staying with Nest for a bit longer.