Transferring from Nest to Vanguard

themadvix

Hi,

I want to move my Nest pension to a Vanguard SIPP. Obviously at the moment my money is not invested in VG funds, so my investments will have to be sold to do the transfer. Given the volatility of the markets, is now a good time to do this? I appreciate everything is 'on sale', but how long will it take to complete the transfer? My concern is that if we have a change of govt to bring about stability, I could end up losing out. I know no one has a crystal ball about these things, but it would help to know how out of my control the transfer is going to be in terms of time out of the market. Any thoughts would be really appreciated.

Thanks!

Albermarle

Most modern pension providers have the same transfer software/system ( Origo) and if both Vanguard and Nest are on this system ( which I would guess is highly likely) it should only take one to two weeks. If one of them is not it might take a few weeks as more paperwork involved.
Given the volatility of the markets, is now a good time to do this? There is a 50% chance it will work in your favour, and a 50% chance it will not, although I suppose there must also be a chance it will be a neutral outcome. 

themadvix

Thanks Albermarle - that's longer than I expected in any case, so I think I might wait for a bit more stability - assuming there's some of that around the corner (whether that's the stability of further falls or things levelling out slightly, I don't mind!).

GazzaBloom

Just do it now would be me my approach. We moved over my wife's pension from her Gregg's L&G pension to a Vanguard SIPP when she finished work earlier this year with little regard for market timing, I don't recall exactly how long it took exactly but it was quicker than we expected. Maybe 2 weeks or so? 

dunstonh

I want to move my Nest pension to a Vanguard SIPP.

Why?   Nest is cheaper for example.  Both Nest and Vanguard are restricted pensions. So, what is it that appeals to you about Vanguards PPP over Nests pension?

Given the volatility of the markets, is now a good time to do this?

You will likely be out  of the market for 3-5 days.  In a volatile market a lot can happen in that period.  So, often its best to wait.  There will always be the risk of movement during a cash transfer but the scale is usually less in quieter periods.

My concern is that if we have a change of govt to bring about stability, I could end up losing out.

Markets were falling long before the current Government was in place.   The issues are mostly global and historic with balloons bursting rather than being let down slowly.    The UK suffering a bit more due to a sluggish BoE and the Government making some decisions that some parts of the market did not like.   The drops started a little under a year ago.   

GazzaBloom

dunstonh said:

I want to move my Nest pension to a Vanguard SIPP.

Why?   Nest is cheaper for example.  Both Nest and Vanguard are restricted pensions. So, what is it that appeals to you about Vanguards PPP over Nests pension?

Is Nest cheaper?

Vanguard SIPP is 0.15% capped at £375 plus fund charge, which varies but can be as low as 0.07%, so 0.22% pa or less once the £375 cap is reached. The only fees I can see from Nest is 0.3% uncapped plus 1.8% charge on every contribution.

dunstonh

GazzaBloom said:

dunstonh said:

I want to move my Nest pension to a Vanguard SIPP.

Why?   Nest is cheaper for example.  Both Nest and Vanguard are restricted pensions. So, what is it that appeals to you about Vanguards PPP over Nests pension?

Is Nest cheaper?

Vanguard SIPP is 0.15% capped at £375 plus fund charge, which varies but can be as low as 0.07%, so 0.22% pa or less once the £375 cap is reached. The only fees I can see from Nest is 0.3% uncapped plus 1.8% charge on every contribution.

It can be cheaper but many people transfer without actually knowing.  It could easily be more expensive and the OP may just be doing it because of some fanboys on internet sites.  hence why I asked.

themadvix

My research supports @GazzaBloom that Vanguard is much cheaper than Nest, hence the change.

I think I'm going to wait - at least this week (or until the Chancellor's statement, if that happens, if it's the same Chancellor etc. etc.). I know the markets have been falling for a while (especially since the war) - my concern is not them falling further, which would be a win for me, but if they recover (even temporarily) due to the prospect of a more (mentally) stable government while my money isn't in them. That said, I'm planning on moving into a world index fund, so probably less of a concern than if I was going for a UK fund. 

Thanks all for your input - you've helped confirm what I thought.

[Deleted User]

dunstonh said:

GazzaBloom said:

dunstonh said:

I want to move my Nest pension to a Vanguard SIPP.

Why?   Nest is cheaper for example.  Both Nest and Vanguard are restricted pensions. So, what is it that appeals to you about Vanguards PPP over Nests pension?

Is Nest cheaper?

Vanguard SIPP is 0.15% capped at £375 plus fund charge, which varies but can be as low as 0.07%, so 0.22% pa or less once the £375 cap is reached. The only fees I can see from Nest is 0.3% uncapped plus 1.8% charge on every contribution.

It can be cheaper but many people transfer without actually knowing.  It could easily be more expensive and the OP may just be doing it because of some fanboys on internet sites.  hence why I asked.

You are changing your story from “Nest IS cheaper than Vanguard” to “It CAN be cheaper”. Now make another small step and change it to “Vanguard platform is cheaper” and you’ll be spot on.

I do think its very wrong for a professional with vested interests to give false information.

dunstonh

I do think its very wrong for a professional with vested interests to give false information.

Please do tell me what vested interests I have.   You won't be able to as you are a liar.

[Deleted User]

IMHO, Vanguard is the most cost effective option in the UK for smaller pots. 

The market trends up in general so being out of the market is bad but a couple of weeks shouldn’t make a massive difference.  Your investments should be globally diversified so that any UK specific impact (such as change of government) is very limited.