Please help re transferring pensions into NEST. Is it worth it?

Marcon

ET22 said:

Hi , I’m a standard rate tax payer. 

So I’ll stay with the workplace pension to get the employer contributions and turn off lifestyle and keep Sharia. How do I opt in and opt out periodically? 

Thankyou x 

You would need to follow a highly prescriptive opt out process - you can't just announce to your employer via email that you want to opt out.

jamesd said:

Just keep existing pension money away from NEST and for the new money turn off lifestyling and pick the Sharia fund. That's adequate for a few years and you can periodically transfer out. They won't let you do that while paying in so the sequence is opt out, transfer, opt back in.

Not a good idea.

The snag with opting out is that even if you ask to be re-enrolled, your employer doesn't have to make contributions on your behalf for up to 12 months after you opt out.

Just join and stay in!

xylophone

Don't forget to consider amalgamating your old NEST pension with the new NEST pension.

With regard to your other DC pensions, it might be worth considering amalgamating those into (say) a SIPP and then continuing to contribute.

When you leave employment, you might then consider a transfer of NEST to SIPP.

Marcon

xylophone said:

Don't forget to consider amalgamating your old NEST pension with the new NEST pension.

With regard to your other DC pensions, it might be worth considering amalgamating those into (say) a SIPP and then continuing to contribute.

When you leave employment, you might then consider a transfer of NEST to SIPP.

You can't have more than one NEST pension - records are kept based on NI numbers. If OP believes they have two, something is wrong somewhere!

xylophone

You can't have more than one NEST pension - records are kept based on NI numbers. If OP believes they have two, something is wrong somewhere!

The OP said

Xylophone, I was self employed for years and briefly worked for an employer and a NEST account was opened but I didnt stay long so payments stopped. I have started work with a new employer and I know they automatically pay into NEST and make contributions on behalf of their employees. I will need to speak to them about that before they deduct anything. 

But from what you say, perhaps NEST has already linked the pensions?

ET22

Hi, as far as I was aware any payments wouldbe made into the same account that is already open , I didn’t consider the possibility this employer would pay into a different or new accounts. I thought it was by the individual and not the employer if that makes sense x

xylophone

Hi, as far as I was aware any payments wouldbe made into the same account that is already open , I didn’t consider the possibility this employer would pay into a different or new accounts. I thought it was by the individual and not the employer if that makes sense x

Then the situation is that at some point in the past, you worked for an employer offering the NEST pension scheme and were automatically enrolled into it.

This means that both you and that employer were making contributions, probably at the minimum rate prescribed.

You left that particular employment  (for self employment again?) but now have taken a job with another firm which offers NEST.

It would appear  (from what Marcon has stated) that you will be re-enrolled into NEST with your NI number as the reference so that your records will be joined.

It would appear that you will then have

Deferred CS (DB) pension.

Deferred  LGPS (DB) pension.

NEST pension

Other DC pensions

State Pension.   With regard to this, what exactly is shown on your State Pension Forecast  as your estimate to 5/4/23?

When do you reach State Pension Age?

With regard to the other DC pensions, it may be worth consolidating these as suggested above and continuing to contribute.

Marcon

xylophone said:

You can't have more than one NEST pension - records are kept based on NI numbers. If OP believes they have two, something is wrong somewhere!

The OP said

Xylophone, I was self employed for years and briefly worked for an employer and a NEST account was opened but I didnt stay long so payments stopped. I have started work with a new employer and I know they automatically pay into NEST and make contributions on behalf of their employees. I will need to speak to them about that before they deduct anything. 

But from what you say, perhaps NEST has already linked the pensions?

Looking at what you've quoted, not sure OP has actually been auto-enrolled with their new employer.

OP - you say 'speaking to them before they deduct anything' - auto enrolment means just that: you'll be automatically enrolled and there's nothing about which you need to speak. You can't opt out until you've actually been enrolled, and any payment to NEST will (again automatically) go to an existing NEST account if you have one.

ET22

Right I see what you mean. I’ve checked the state pension amount and it’s the full amount , it’s said there’s nothing I can do to improve it. It was over 200 p.w x

ET22

I’m just turned 52 x 

xylophone

Right I see what you mean. I’ve checked the state pension amount and it’s the full amount , it’s said there’s nothing I can do to improve it. It was over 200 p.w x

£203.85?

Then as you say, this is the full New State Pension - as far as we know at the moment, it will revalue each year (and increase in payment) under the triple lock.

Both your deferred pensions will revalue in deferment and increase in payment under the rules of the schemes.

The NEST pension, like the other DC schemes, will depend on the performance of the underlying investments.

Have you made a list of your other DC Schemes and current values?