Should I maximise my NEST contributions?

LV_426

My current employer uses NEST. Employer contribution is 8%. I'm currently matching that, but thinking of increasing that to 12%.
I'm 55, have about 6 other DC pension pots, plus a couple of DB ones. I'm considering retiring at 60.
Is there any good reason not to maximise my contributions into NEST? I know it's not the best scheme in the world. I'm invested in their default  'retirement date' plan.
And the employer doesn't use salary sacrifice

Dazed_and_C0nfused

If you aren't getting employer matching on the extra 4% then the main downside with using Nest would seem to be the high initial charge of 1.8%.

But you would have to weigh that up against their relatively low ongoing charge of 0.3% and what you could do elsewhere.

And of course are you 100% happy with the investment choice?  Unmatched contributions may be better placed elsewhere?

LV_426

Dazed_and_C0nfused said:

If you aren't getting employer matching on the extra 4% then the main downside with using Nest would seem to be the high initial charge of 1.8%.

But you would have to weigh that up against their relatively low ongoing charge of 0.3% and what you could do elsewhere.

And of course are you 100% happy with the investment choice?  Unmatched contributions may be better placed elsewhere?

Do you mean a different fund within NEST? Choices are very limited aren't they? But I have no real complaints with the default fund, as it's doing as well or better than most of my other pensions.
No they won't match my 12%, as 8% is their max.

LV_426

Here's another question - If I were to put my additional contributions into a previous employer's pension fund, would the 20% tax contribution be added?

Linton

LV_426 said:

Here's another question - If I were to put my additional contributions into a previous employer's pension fund, would the 20% tax contribution be added?

You may well not be able to make additional contributions to an ex-employers pension scheme.  However if you can your pension would get the 20% tax contribution.  That happens automatically for any pension contribution from taxable income.

Albermarle

You would need to check with the pension provider of your previous employer. if they can accept new personal contributions. Some will for sure .

Probably at some point you should consider consolidating your DC pensions into a smaller number. Older pensions tend to be less flexible on withdrawal options.

LV_426

Albermarle said:

You would need to check with the pension provider of your previous employer. if they can accept new personal contributions. Some will for sure .

Probably at some point you should consider consolidating your DC pensions into a smaller number. Older pensions tend to be less flexible on withdrawal options.

I'll try, but Standard Life have got noticeably slower in responding to messages. I think someone mentioned previously that they were undergoing a restructuring, no doubt involving less people.

I did recently consult with an IFA about consolidation. Advice at this point was to leave them, for various reasons which I won't go into.

Albermarle

You should be able to see all the options on their website, with your username and password.
Their website is one of the better ones.