Transferring from Nest to Vanguard

dunstonh

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

Most pensions with NEST are smaller pots as they tend to be used with smaller employers.  They haven't a long history.   So, values tend to be quite low.  They have an ongoing charge of 0.3% all in.

Vanguard's platform charge with smaller posts is 0.15%.  You need to add the ongoing charges of the fund. The VLS range, which is their most high profile range in the UK, is 0.26%.   That brings it to 0.41% which is more than NEST.

themadvix

Thanks Mordko

[Deleted User]

dunstonh said:

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

Most pensions with NEST are smaller pots as they tend to be used with smaller employers.  They haven't a long history.   So, values tend to be quite low.  They have an ongoing charge of 0.3% all in.

Vanguard's platform charge with smaller posts is 0.15%.  You need to add the ongoing charges of the fund. The VLS range, which is their most high profile range in the UK, is 0.26%.   That brings it to 0.41% which is more than NEST.

Nest also charges 1.8% on contributions.  Unlike Vanguard.  Which makes NEST really expensive in comparison. Worth a mention? And that’s before we consider Vanguard’s ETFs which are cheaper than the VLS range. 

And while technically you are right that both Vanguard and Nest platforms restrict which funds you can buy, Vanguard offers a full range of good asset allocation options. NEST does not.

GazzaBloom

themadvix said:

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.

Which Chancellor? 

dunstonh

Nest also charges 1.8% on contributions.  

But if the OP is looking to transfer elsewhere, this would indicate that contributions have stopped.

And that’s before we consider Vanguard’s ETFs which are cheaper than the VLS range. 

The average consumer wouldnt go near ETFs.

[Deleted User]

dunstonh said:

Nest also charges 1.8% on contributions.  

But if the OP is looking to transfer elsewhere, this would indicate that contributions have stopped.

And that’s before we consider Vanguard’s ETFs which are cheaper than the VLS range. 

The average consumer wouldnt go near ETFs.

Why? Does Nest disallow contributions after the employment with the original firm has stopped? If so its another reason to move.

Yes, I understand the uptake of ETFs is lagging in the UK. But its the future.  Its usually cheaper. The average consumer should look at this option. And Vanguard’s platform gives clients the option to buy ETFs free. 

themadvix

GazzaBloom said:

themadvix said:

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.

Which Chancellor? 

I covered that! 😂 You honestly couldn’t make it up… oh for a quiet life!

themadvix

More information - I am self employed, I set up the Nest pension a few years ago when I knew I needed a pension (as had nothing) but didn’t know as much as I do now. So I was continuing to contribute to it until I opened my VG one last month. And I am buying ETFs so it is cheaper.  It’s less than £100k at the minute, so that probably counts as a small pot, but I do know enough now to know I don’t want to be paying more in fees than I have to be. Not sure about comments about ‘fan boys’ on other websites, I do my own research, I just wanted an opinion about this.

Now I think I’ll be waiting for a new PM!

dunstonh

Why? Does Nest disallow contributions after the employment with the original firm has stopped? If so its another reason to move.

it doesn't but its primary purpose for existing is to be an auto-enrolment scheme.

Yes, I understand the uptake of ETFs is lagging in the UK. But its the future.  Its usually cheaper. 

It is a long-out-of-date myth that ETFs are cheaper.   In fact, many comparable OEICs are cheaper than ETFs and don't have the dealing costs.  ETFs have no FSCS protection whereas pension funds get 100% FSCS protection with no upper limit and OEICs get £85k FSCS protection per fund house.

 The average consumer should look at this option. And Vanguard’s platform gives clients the option to buy ETFs free. 

..but only Vanguard funds and they dont have best in all markets. So, the free bit may come at a cost elsewhere.

[Deleted User]

dunstonh said:

Why? Does Nest disallow contributions after the employment with the original firm has stopped? If so its another reason to move.

it doesn't but its primary purpose for existing is to be an auto-enrolment scheme.

Yes, I understand the uptake of ETFs is lagging in the UK. But its the future.  Its usually cheaper. 

It is a long-out-of-date myth that ETFs are cheaper.   In fact, many comparable OEICs are cheaper than ETFs and don't have the dealing costs.  ETFs have no FSCS protection whereas pension funds get 100% FSCS protection with no upper limit and OEICs get £85k FSCS protection per fund house.

 The average consumer should look at this option. And Vanguard’s platform gives clients the option to buy ETFs free. 

..but only Vanguard funds and they dont have best in all markets. So, the free bit may come at a cost elsewhere.

The second and third points are falsehoods. So we are back to the very first point in this thread which was also completely false.