Nest contribution fee and alternative

flopsy1973

My partner is enrolled in the nest scheme but also pays in monthly additional contributions. We only just realised there is a 1.8% fee on contributions so is it better to set up another pension for the additional contributions with another provider and who? any advice or comments on this 

Marcon

flopsy1973 said:

My partner is enrolled in the nest scheme but also pays in monthly additional contributions. We only just realised there is a 1.8% fee on contributions so is it better to set up another pension for the additional contributions with another provider and who? any advice or comments on this 

Not a bad idea at all! Any personal pension provider which beats NEST for charges (there are plenty) and offers a fund choice your partner likes the look of (virtually any provider) would do the trick. See for starters: https://www.moneysavingexpert.com/savings/cheap-sipps/

LHW99

Still worth paying in the maximum to Nest to get the employer's maximum contribution though (some employers will add a bit more if you do that, though probably unlikely with a Nest pension)

dunstonh

flopsy1973 said:

My partner is enrolled in the nest scheme but also pays in monthly additional contributions. We only just realised there is a 1.8% fee on contributions so is it better to set up another pension for the additional contributions with another provider and who? any advice or comments on this 

It's up to the employer who they use.  Not the employee.   Most employers will not facilitate individual schemes as individual schemes do not meet the auto-enrolment criteria.  Even if they will do so (e.g. your partner is in a management position or key worker), then it would involve opting out and then communicating regularly with payroll to ensure the correct amounts are paid.

Marcon

dunstonh said:

flopsy1973 said:

My partner is enrolled in the nest scheme but also pays in monthly additional contributions. We only just realised there is a 1.8% fee on contributions so is it better to set up another pension for the additional contributions with another provider and who? any advice or comments on this 

It's up to the employer who they use.  Not the employee.   Most employers will not facilitate individual schemes as individual schemes do not meet the auto-enrolment criteria.  Even if they will do so (e.g. your partner is in a management position or key worker), then it would involve opting out and then communicating regularly with payroll to ensure the correct amounts are paid.

I think OP is aware of that - they've specifically asked about their partner's 'monthly additional contributions' and whether it would be sensible to pay (just) those to another pension arrangement.

Albermarle

flopsy1973 said:

My partner is enrolled in the nest scheme but also pays in monthly additional contributions. We only just realised there is a 1.8% fee on contributions so is it better to set up another pension for the additional contributions with another provider and who? any advice or comments on this 

Probably yes.
However worth noting that the Nest ongoing fee is 0.3% all in, which is pretty good. By all in , I mean including pension/platform charge. Most ( not all ) pensions have separate platform and investment fund charges, so you need to be careful not to end up paying a lot more than 0.3%., and ruining the point of the exercise.