NEST or State pension contributions

bostonerimus

sheslookinhot said:

Remember, it is not “free” money from an employer. It is factored in to your overall compensation and benefits.

I agree, it's all part of your compensation. Thinking of the employer's contribution as "free" somehow devalues it. Employers have done a very good job or reframing their responsibility for pensions and reducing their contributions which has increased inequity over the last couple of generations.

The fee structure of NEST is not great, but if it's all you've got then use it. I believe the OP can continue to make contributions while overseas, but they should check the exact rules with NEST and they should continue to pay voluntary NI. So it's not a either or choice - do both.

Albermarle

Tranboy said:

The reviews on trust pilot if they can be believed for nest are somewhat critical about being able to withdraw and transfer your pension money.  Someone on there pointed out that with their  1.8% and 0.3 % charges on the % of your wages you pay in only 0.9% actually goes to your pension in addition to the employer 3% and government 1%. For those in their later years 50+ the charges are proportionately greater especially if you transferred other pensions into nest and have a large amount. Despite the claims of nest ,their investment funds are poor value for money .

The current minimum employee contribution is actually 5% ( it was less so maybe some of the comments you have seen on Trust pilot reflect this )
In any case whoever you have been reading needs to improve their arithmetic .

Lets say it was still 3 % and you earned £30K pa . You would add £900 to the pension in one year . There would be a 1.8% initial charge ( approx £17) and then an annual charge of 0.3% ( £3) . So you have added £900 and now you have £880 left .
So you have added 3% of your wages and you have 'lost' £20 in charges , so effectively your contribution is reduced to 2.94% of your wages . The next year you are only charged another 0.3% ( £3) on that money , which is very cheap compared to most pensions as it includes the platform and fund costs.

There is no initial fee of 1.8% if you transfer another pension into Nest .

The only thing really wrong with NEST is that the investment choice is limited but it is adequate for the large majority.