Nest or Scottish Widows

colingcp

My Wife has a partime job earning under the tax threshold. She has a work pension with Nest in which her employer also contributes. She wishes to make a one off additional contribution to take advantage of her tax allowance. I understand this payment can be up to the amount of her annual wage. Alond side her Nest pension,she also has a private pension with Scottish Widows which was set up by a previous employer. Would it be sensible to make any addional contribution to SW instead of Nest and if she does, will she still receive the 20% tax allowance on her contribution.

Thank you

xylophone

 https://www.nestpensions.org.uk/schemeweb/nest/my-nest-pension/contributions-and-fees.html#:~:text=These charges are made up,of your pot each year

See (discussion of charge on each contribution to NEST).

https://www.reddit.com/r/UKPersonalFinance/comments/dx61nb/avoiding_ridiculous_nest_pension_charges/

Let's say that your wife earns £10,000 a year and makes a contribution  of £800 a year to NEST -  although she does not pay tax, NEST  claim tax relief of £200 which is added to her NEST pot.

If she wishes, she can make a  further contribution of up to  £7200 to either NEST  or  her personal pension with SW and receive tax relief of up to £1800 which will be added to the pension.

penners324

SW. The fees will be less than Nest

dunstonh

penners324 said:

SW. The fees will be less than Nest

Depends which version of the SW pension the op has.  SW have COMP/CIMP, GPPP, GSHP and auto-enrolment.  All have bespoke terms available and different versions over the years.

Nest can be cheaper than SW depending on the OP's age and time to taking benefits.

Albermarle

penners324 said:

SW. The fees will be less than Nest

The ongoing fees for Nest are 0.3% all in, so unlikely that many pensions would be significantly less than that, most will be more.
The issue with Nest is the 1.8% charge on initial contributions.
Effectively the Nest charges become more competitive the longer you stay in the pension as eventually that 1.8% charge gets very spread out.

MakingUpGround

also depends on what funds she is invested in with either etc. There is not much choice with NEST. Only one of them really grows to any value but is a riskier fund to be in. 

colingcp

Sorry I haven't replied but my wife's pension from her previous employer is  Scottish Widows Pension Portfolio Four Pension (Series 2). So that would be the option. Thank you