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

ET22

I’ve got the paperwork but haven’t checked the values. I haven’t got any financial commitments anymore like a mortgage or loan , I can’t drive anynore due to a disability so at least 27 per cent of my income can go into another pension and I won’t miss it  ( or into one of the DC ones I’ve got). X 

ET22

Yes it was 203.85. X 

xylophone

Make that list so that you know where you are.

Now consider charges and investment choice.

Check on any transfer out charge.

Would it be to your advantage to transfer them to eg a SIPP?

https://www.moneysavingexpert.com/savings/cheap-sipps/

ET22

Thanks for the link @xylophone, I will definitely consider putting some money in those, they look very interesting x     

jamesd

Marcon said:

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.

...
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.

What an employer could to to maximise harm to their employee and what they are likely to do are different things. In practice if an employee works with their desired timings one or even no months of matching need be lost. Just discuss with the employer first and adapt based on that.

The Pensions Regulator appears to say that periodic re-enrollments of employees who voluntarily withdraw can be no less frequent than once every three years. Which means almost three years in, withdraw and be enrolled on the cycle date.

jamesd

ET22 said:

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 best to transfer that existing NEST pension out of NEST before they can use their lock in no transfers while active rule to make it harder than it needs to be.

ET22

Its given me a lot to thnk about. Thankyou all for taking the time to reply. In respect of a SIPP, I think I'll invest a small amount in one once ive worked out which regions etc are deemed better. Ive located the Sharia funds option in NEST. Im looking for a personal pension to invest 7000 p.a but have no clue what yet. I think ive read on here about investments outside the UK being less risky with medium levels of growth or I am confused and need to re read. There is a lot of information to consider but from what I understand, 15 years is a long enough timeframe to make some progress and recover ok if something goes drastically wrong at some point. Im not sure but ive also read people move money to less risky investments nearer retirement x          

MallyGirl

Lifestyling is where funds are moved over to less risky investments near to retirement. This is so you can be more confident about what will be in the pot to buy an annuity with - and there shouldn't be a big drop just when you need it to be on a high. Most don't buy annuities these days so this is not what you want to do. You want your pot to keep growing throughout your retirement so that you can keep pace with inflation in your drawdowns.

Marcon

jamesd said:

Marcon said:

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.

...
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.

What an employer could to to maximise harm to their employee and what they are likely to do are different things. In practice if an employee works with their desired timings one or even no months of matching need be lost. Just discuss with the employer first and adapt based on that.

The Pensions Regulator appears to say that periodic re-enrollments of employees who voluntarily withdraw can be no less frequent than once every three years. Which means almost three years in, withdraw and be enrolled on the cycle date.

You're making it far too complicated for the average employee. Just staying in the scheme is likely to be the simplest and most productive way forward for many.

xylophone

 Im looking for a personal pension to invest 7000 p.a but have no clue what yet.

A SIPP is a type of personal pension. A SIPP usually offers a very wide choice of investments where a personal pension can  be more restricted.

What are your existing other DC pensions?

If you do not wish to combine them, have you investigated whether you could continue to contribute to one of them, rather than adding another to the mix?

Would you benefit from taking advice from an Independent Financial Adviser?

You could try

https://adviserbook.co.uk/

Tick "confirmed independent" and other options required.