Pension Charges

NoahGandhi

I have a pension with Nest. Not huge but I have started making contributions and notice they deduct a 1.8% charge on any contributions I make. Albeit I haven’t paid that much money in but if I did make a larger contribution in future it would be a fair amount. My question is how do NEST charges compare over all with other providers in terms of charges? I’m happy with them and the explanation (below) that over the “long term” it does seem low for charges. However I’m not sure I fully understand how they’ve reach a figure of under 0.5% for charges over the long term. Am being disadvantaged by having 1.8% deducted at investment or is this better?

 

“Nest charges its members an annual management charge(AMC) of 0.3 per cent of their retirement pot. We also apply a small 1.8 per cent charge on contributions. Over the long term these amount to a little under 0.5 per cent.”

Albermarle

Nest is unusual nowadays to be taking a charge out of your contribution , normally nothing is deducted.
On the other hand 0.3 % pa all in for platform and fund , is pretty low . Comparable pensions would charge from 0.5% to 1 % pa
So the longer you stay with Nest the lower the average charge . However if you only stayed with them for a year or two , then it would work out higher.

NoahGandhi

Apparently the charge is to cover the government loan they took to set NEST up