Merging Work Pension & SIPP, Need a new provider

Corbula

I've been looking a bit more into this and it seems most employers choose not to do it to avoid the extra admin work. Seeing as it's me that does it where I work and my boss handles the bank the issues should be minimal. 

However another option would be to keep the NEST as is and I read somewhere that they transfer the money from that pension into there SIPP say once a year. That way keeping the work pension open but benefitting from having a bigger pot all invested in a fund of there choice.

The reason the NEST Sharia fund has done well is because it's the only one with 100% equities and had a big bounce from the pandemic and is heavily invest in certain tech companies. I prefer a more global distribution and think that would perform better over the long term. Can't judge from last result. 

Albermarle

However another option would be to keep the NEST as is and I read somewhere that they transfer the money from that pension into there SIPP say once a year. That way keeping the work pension open but benefitting from having a bigger pot all invested in a fund of there choice

If Nest allows that then fine.

However note that Nest has an unusual charging structure. Each new contribution attracts an initial charge of 1.8% ( normally there is no initial charge ) and then an ongoing charge of 0.3%, which is pretty low, especially for smaller amounts. So the longer you leave the money with Nest the average charge reduces. By paying the initial charge and then shipping the money out to a provider that probably has higher ongoing charges, then you are sort of losing out. The Nest 0.3% covers everything, whereas most providers have separate platform and fund charges. 

Corbula

Another potentional option but not sure if it would work. Could an employer open a work place pension with say Fidelity and my work pension and SIPP could move all into there? I don't know if an employer can have more than one so everyone else would stay with NEST. 

Bimbly

Corbula said:

Could an employer open a work place pension with say Fidelity and my work pension and SIPP could move all into there? I don't know if an employer can have more than one so everyone else would stay with NEST. 

They could, but it would be a lot more admin for them, which they would probably baulk at.

Corbula

Bimbly said:

Corbula said:

Could an employer open a work place pension with say Fidelity and my work pension and SIPP could move all into there? I don't know if an employer can have more than one so everyone else would stay with NEST. 

They could, but it would be a lot more admin for them, which they would probably baulk at.

Ok thanks, I will see if I can get it all moved into one SIPP in that case.