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Nest contribution fee and alternative

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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 

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  • Marcon
    Marcon Posts: 14,248 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    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/
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • LHW99
    LHW99 Posts: 5,191 Forumite
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    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
    dunstonh Posts: 119,579 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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 am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Marcon
    Marcon Posts: 14,248 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    edited 29 June 2024 at 6:46PM
    dunstonh 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.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Albermarle
    Albermarle Posts: 27,662 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    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.
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