auto-enrolled into NEST

A_T

I am a contractor within IR35 using an umbrella company. My pay packet this week was reduced so I checked and it appears I have been auto-enrolled into NEST.

I already have a well-established SIPP and a DB and I can't see the NEST pension being any advantage. It seems that the employer's contribution to the NEST pension comes from my Umbrella company and it's just money I could invest in my SIPP anyway. So it looks like all NEST would do is complicate matters by creating another pension over which I would have much less control than my SIPP.

Am I missing anything?

Dazed_and_C0nfused

Do you mean the "employer" contributions aren't actually being contributed by the employer but effectively out of your pay?

A_T

Y

Dazed_and_C0nfused said:

Do you mean the "employer" contributions aren't actually being contributed by the employer but effectively out of your pay?

Yes. I work inside IR35 as a contractor with a Local Authority. They pay an agency who then send the money to the umbrella company who do the PAYE payroll and pay me.

From what I can see part of my wages are paid by the umbrella company to NEST and marked on my payslip 50% as employee contribution and 50% from employer. This is money that I would otherwise keep and use as I see fit.

I'm paying a lot into my SIPP so I can't see that another NEST pension will help me at all.

My understanding is that this is a legal requirement for the umbrella compnay when someone has been employed for a certain length of time. But that I can opt out which is what I will do unless any advantages of having the NEST pension come to light.

Brie

I believe you have up to 3 months after being auto enrolled to opt out and get your money back.  This used to be repeated every 2 or 3 years.

MX5huggy

Hows NI dealt with in these arrangements? Could the umbrella Salary Sacrifice to the NEST? (Nest can accept SS contributions). 

liz_bartun

You can opt out if you don't wish to be in the scheme. NEST will send you instructions on how to do this but you could call them if you don't want to wait for the welcome pack. There is a window of about one month within which an opt-out will trigger a refund to you (and the umbrella). After that you don't get a refund but it stays in your pot.

penners324

Won't you be missing out on the employer contributions if you opt out?

A_T

penners324 said:

Won't you be missing out on the employer contributions if you opt out?

no because I'm paying them myself