Joining pension?

jmb1

I had a Nest pension in my old job. My new job started two years ago and came with a new pension with legal and general. Is it worth me combining the two pensions (presumably by transferring Nest amount (about £9k) to legal and general)? Is this what people would usually do when changing jobs?

Brie

First thing to do is check if your new pension will accept transfers in.  (most likely it will).

I've a tiddly Nest pension for my current job and it does seem like the fees on it are high so it's certainly worth investigating.  It's handy to know where everything is and that you only need to contact one pension administrator.

On the other hand it's also nice to be able to take one pension at a certain date and the other at a completely different time with a different type of payout.  Is the Nest pension pot substantial?  If so you might consider this.  If on the other hand it's just a couple thousand having it moved to the L&G pension might be easiest.

jmb1

Thanks. Yes a quick google suggests they do accept transfers. Just checked Nest also and its 9.5k. Yes agree having it all in one place would seem easier.

Also wonder though, which is the bigger consideration, if it might earn more with legal & general (though I realise its impossible for anyone to say without knowing where my l&g funds are invested, which was done automatically when I started the job i.e I didnt select the allocated funds/investments.

Marcon

jmb1 said:

Thanks. Yes a quick google suggests they do accept transfers. Just checked Nest also and its 9.5k. Yes agree having it all in one place would seem easier.

Also wonder though, which is the bigger consideration, if it might earn more with legal & general (though I realise its impossible for anyone to say without knowing where my l&g funds are invested, which was done automatically when I started the job i.e I didnt select the allocated funds/investments.

Might be easier but might not be better...

If you're in the default fund, look at the other options and see if other funds might better suit your objectives/attitude to risk.

MX5huggy

You have fund choices in Nest as well. 

Hope you’ve been in the Sharia fund? Might not be best going forward of course https://www.nestpensions.org.uk/schemeweb/nest/investing-your-pension/fund-choices/compare-fund-performance.html

 Nest fee is 0.3% for invested funds which is competitive. They charge 1.8% fee on newly invested money which is horrendous (most don’t charge anything) but as you have already paid it its academic. 

jmb1

Marcon said:

jmb1 said:

Thanks. Yes a quick google suggests they do accept transfers. Just checked Nest also and its 9.5k. Yes agree having it all in one place would seem easier.

Also wonder though, which is the bigger consideration, if it might earn more with legal & general (though I realise its impossible for anyone to say without knowing where my l&g funds are invested, which was done automatically when I started the job i.e I didnt select the allocated funds/investments.

Might be easier but might not be better...

If you're in the default fund, look at the other options and see if other funds might better suit your objectives/attitude to risk.

Thanks, yes I was just looking at exactly this in my account; I have no idea what risk it actualy represents! It's 9.5k so could I risk losing it all? Or worse case 2k? Or is it again impossible to predict and a pure gamble?!

Edit: should add that I'm 50

Marcon

jmb1 said:

Marcon said:

jmb1 said:

Thanks. Yes a quick google suggests they do accept transfers. Just checked Nest also and its 9.5k. Yes agree having it all in one place would seem easier.

Also wonder though, which is the bigger consideration, if it might earn more with legal & general (though I realise its impossible for anyone to say without knowing where my l&g funds are invested, which was done automatically when I started the job i.e I didnt select the allocated funds/investments.

Might be easier but might not be better...

If you're in the default fund, look at the other options and see if other funds might better suit your objectives/attitude to risk.

Thanks, yes I was just looking at exactly this in my account; I have no idea what risk it actualy represents! It's 9.5k so could I risk losing it all? Or worse case 2k? Or is it again impossible to predict and a pure gamble?!

Edit: should add that I'm 50

Depends where you're invested, but the chances of 'losing it all' in a mainstream pension like L&G are as close to zero as you can ever get!

Have a browse: https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot

jmb1

Marcon said:

jmb1 said:

Marcon said:

jmb1 said:

Thanks. Yes a quick google suggests they do accept transfers. Just checked Nest also and its 9.5k. Yes agree having it all in one place would seem easier.

Also wonder though, which is the bigger consideration, if it might earn more with legal & general (though I realise its impossible for anyone to say without knowing where my l&g funds are invested, which was done automatically when I started the job i.e I didnt select the allocated funds/investments.

Might be easier but might not be better...

If you're in the default fund, look at the other options and see if other funds might better suit your objectives/attitude to risk.

Thanks, yes I was just looking at exactly this in my account; I have no idea what risk it actualy represents! It's 9.5k so could I risk losing it all? Or worse case 2k? Or is it again impossible to predict and a pure gamble?!

Edit: should add that I'm 50

Depends where you're invested, but the chances of 'losing it all' in a mainstream pension like L&G are as close to zero as you can ever get!

Have a browse: https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot

I was referring to my nest, which is the default currently. No im not in the sharia, should I be? I was wondering if the higher risk was a better option but uncertain what the risk actually is!

jmb1

MX5huggy said:

You have fund choices in Nest as well. 

Hope you’ve been in the Sharia fund? Might not be best going forward of course https://www.nestpensions.org.uk/schemeweb/nest/investing-your-pension/fund-choices/compare-fund-performance.html

 Nest fee is 0.3% for invested funds which is competitive. They charge 1.8% fee on newly invested money which is horrendous (most don’t charge anything) but as you have already paid it its academic. 

No, not sharia, default

Sarahspangles

It keeps life simple if you combine pots - there’s just one provider to contact if you move house, or change your name or email address. All reasons people lose touch with their schemes!

The main reason not to would be that your current provider has higher charges.

vaiters1985

jmb1 said:

MX5huggy said:

You have fund choices in Nest as well. 

Hope you’ve been in the Sharia fund? Might not be best going forward of 

 Nest fee is 0.3% for invested funds which is competitive. They charge 1.8% fee on newly invested money which is horrendous (most don’t charge anything) but as you have already paid it its academic. 

No, not sharia, default

Sharia fund is 100% equities fund, however it is overweight in US stock - approxx 80 - 88% and around 40% in tech stock. So basically fund will be doing well when top 7 tech companies are doing well. It has been performing well for last over a decade(approx 14% annual return based on 10 years period) but it is not a well diversified global fund as it only holds 100 MEGA CAP companies - its not truly global well diversified fund. if you have 20 to 30 years ahead of you, you might be able to come round ok as usually long periods of overperofmance of each fund that is overweigh toward specific sector follows by long period of underperfomarnce - as long as you can stomach this and not sell when !!!!!! hits fun or when it underperforms for decade - you should be fine. but at that rate of going you are almost always better to choose well diversified fund like ftse global all cap and just follow what market does - this fund would invest in 7000 global companies and wouold have proper represantaion of the market - circa 60% US stock so it still performs well now but should this change and other countries start overperform US , youa re covered as you invest in global economy. In nest i would personally invest in most diversified fund there is with most amount of stock i can get but not something as crazy as sharia fund. So I would personally go for Nest higher risk fund with lifestyling switched off. This fund is 70% stock, circa 10% reit(commercial real estate) approx 10% bonds and remaining is in commodities(gold etc). so nest higher risk fund seems like the wisest choice to be made out of all funds. Also nest fees are by no means high. 1.8% is charged on contributions not on overall pot, fund fee is 0.3%.so say you put in £300 every single month they charge you £5.40 per month which is circa £65/year x say 30 years= £1950.00 so not bad at all.