Nest

Edgylen81

Hi all
just wondering if you could give me some advice related to a Nest pension. My employer pays the minimum of 3% contribution and I’m paying the 5%. I also have a private pension. I was planning on stopping my private pension and putting that money into my nest. 

Hoping to maximise my pension as I was thinking that would also increase my employers contributions. I’ve contacted payroll who have said that my contributions are not related to my employers. Is this correct. 

Thanks

xylophone

You are a member of NEST through your employment so that your employer must make a minimum contribution to your pension.

However, your choosing to make a higher contribution would not require your employer to increase his contribution (although some employers do offer "matched" contributions up to a certain level).

https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/contributions/make-additional-contributions.html

Re a transfer in

https://www.nestpensions.org.uk/schemeweb/nest/my-nest-pension/transfer-your-pension-pots.html

ewaste

More than likely your employer doesn't offer any additional or matching pension contributions just the legal minimum 3% of qualifying earnings. Whatever you decide to contribute over and above the 5% employee minimum of qualifying earnings is your own business and therefore not related to your employer or their contributions.

If you are a basic rate taxpayer and don't benefit from salary sacrifice then continuing to contribute to a 'private pension' e.g. a SIPP might well be more beneficial than additional contributions to NEST.

The legal minimum 8% of qualifying earnings is a starting point and generally I would suggest people pay an equal or considerably higher percentage of GROSS earnings.

dunstonh

I’ve contacted payroll who have said that my contributions are not related to my employers. Is this correct. 

Correct. It is up to employers how much they decide to contribute to the pension as long as they meet the minimum.  They are not required to match beyond the minimum.   Some will do more.  Some will not.    

I would say, with a big generalisation alert, that an employer using NEST is not the type typically to go beyond the minimums.  NEST was created to cater for the bottom end of the market where the traditional providers were not really that interested in offering their schemes.

Dale72

I believe quite a few employment agencies use NEST for their casual workers, many of whom, both from this country and abroad are highly skilled and/or qualified and are using casual employment for various reasons. So the idea that they are 'not the type to go beyond the minimums' is not a big generalisation, its wrong and insulting.

ewaste

Dale72 said:

I believe quite a few employment agencies use NEST for their casual workers, many of whom, both from this country and abroad are highly skilled and/or qualified and are using casual employment for various reasons. So the idea that they are 'not the type to go beyond the minimums' is not a big generalisation, its wrong and insulting.

If it wasn't clear enough the generalisation was with regards to employers not employees... which I would agree that @dunstonh is correct on that point.

dunstonh

Dale72 said:

I believe quite a few employment agencies use NEST for their casual workers, many of whom, both from this country and abroad are highly skilled and/or qualified and are using casual employment for various reasons. So the idea that they are 'not the type to go beyond the minimums' is not a big generalisation, its wrong and insulting.

You have misread.  I accept your apology.

penners324

I would leave your other pension pots outside of NEST. Then also put your nest pot and contributions into a higher risk fund (as high as you feel comfortable with) to increase your investment returns on that pot. Just my opinion