Small pension pot help please

angelbreeze

I have a pension pot with nest from my previous employer,and I’m enrolled in a different one with my new employer.
I’m now 55,so hav the option of taking my whole pot with nest as a lump sum,there’s nearly £3500 which would work out just short of £3000 after tax,I’ve been told by a friend if I leave it in nest I would be charged a percentage each year it’s left in,which I’m unsure about.
what would be my best option,transferring my pension pot to my new employer or having the lump sum,or leaving it where it is,it’s so confusing 

dunstonh

I’ve been told by a friend if I leave it in nest I would be charged a percentage each year it’s left in,which I’m unsure about.

The explicit charge on NEST is lower than the implicit charge on your savings account (assuming you have one).    Taking it out because of a tiny explicit charge would be daft.  Indeed, the fact it was mentioned at all probably means your friend  inexperienced on this front (blind leading the blind) 

what would be my best option,transferring my pension pot to my new employer or having the lump sum,or leaving it where it is,it’s so confusing 

Leave it whether it is or transfer it to the new employer scheme.

Albermarle

,I’ve been told by a friend if I leave it in nest I would be charged a percentage each year it’s left in

All pensions have a charge, whether you are contributing to them or not. Some have a higher charge than others. The Nest one is quite low ( 0.3%pa)Your money remains invested in the investment fund(s) within NEST and you would hope that on average they will grow by significantly more than the charges.

Exactly the same will apply to your new scheme, although maybe the charges will be higher than NEST, so best to check.

So you can leave them separate, or transfer the Nest one to your new scheme. Probably will not make that much difference either way.