transfer old pension pot into Nest?

orange86

I have a L&G pension pot from an old employer. As no contributions are going in and im being charged c£6 pm, im thinking of closing it and moving the funds into Nest or a SIPP.

I'm currently contracting and have a nest account. My unmbrella company Paystream, pay nest the pension amounts as they do my weekly payroll.

I also have just opened a SIPP with ii to invest in £500pm via Paystream salary sacrifice.

Would moving my L&G pot make more sent into Nest or SIPP?

gravel_2

Nest has poor fund choices (I'll make no comment on quality, just lack of choice). Once money is in Nest you can't transfer any of it out until you stop paying in to it via payroll so you can't decide later to SIPP it or part of it. If you are getting comfortable with investing in your SIPP then I would suggest transferring L&G to there if at all.

It could be worth checking the L&G fund choices to see if they suit you and the cost can be justified.

Of course if your L&G pot is small then it makes sense to consolidate and it probably won't matter where you put it.

dunstonh

Would moving my L&G pot make more sent into Nest or SIPP?

You have told us nothing about the L&G pension.

Albermarle

orange86 said:

I have a L&G pension pot from an old employer. As no contributions are going in and im being charged c£6 pm, im thinking of closing it and moving the funds into Nest or a SIPP.

I'm currently contracting and have a nest account. My unmbrella company Paystream, pay nest the pension amounts as they do my weekly payroll.

I also have just opened a SIPP with ii to invest in £500pm via Paystream salary sacrifice.

Would moving my L&G pot make more sent into Nest or SIPP?

That would depend on what types of investments you hold in each of those pensions. The actual pension provider has no bearing on how the money will grow.

 As no contributions are going in and im being charged c£6 pm,

If the pot is a £1000 then the charge is very high. If it is £100K then the charges are very low. Be careful though because many pensions have a separate charge for the pension and the investments. Some roll it all up together.
The fact you are not contributing it anymore should have no bearing on any decision to move it or not. 

orange86

So my L&G pot has £27.5k. It is invested in: Multi-Asset 5 Year 25% Cash Lifestyle Profile. I'm being charged c£6 a month for 'Management charge'. The Investment gain since 01 Apr 2022 is; £2,340.07(9.28%).

My Nest pension pot has £408, i only started in April so it's quite low. Money is being invested in: 'NEST Retirement Date Fund'.

My SIPP with interactive investor is empty as i only set it up last week. Paystream will do a monthly BACs transfer of £500, paid through my salary sacrifice.

I'm on a 6 month contract with current employer, it may get extended so i'll probably stay on for the day rate. All paid via umbrella.

Exodi

orange86 said:

So my L&G pot has £27.5k. It is invested in: Multi-Asset 5 Year 25% Cash Lifestyle Profile. I'm being charged c£6 a month for 'Management charge'. The Investment gain since 01 Apr 2022 is; £2,340.07(9.28%).

My Nest pension pot has £408, i only started in April so it's quite low. Money is being invested in: 'NEST Retirement Date Fund'.

My SIPP with interactive investor is empty as i only set it up last week. Paystream will do a monthly BACs transfer of £500, paid through my salary sacrifice.

I'm on a 6 month contract with current employer, it may get extended so i'll probably stay on for the day rate. All paid via umbrella.

~£6 p/m on ~£27.5k is an AMC of around 0.25% - 0.3% (depending on rounding).

Transferring to Nest doesn't make much sense as the AMC is also 0.3%. Personally I think Nest is a very poor choice of provider in general and if you're able to make Paystream pay into a different scheme other than Nest for your ongoing contributions that would be advisable, as Nest also skim 1.8% of every contribution off the top as a 'contribution charge'. Given that Nest also has limited fund choices, I think they survive on reputation and inertia alone.

If you have a SIPP with II that you already pay for then this seems like the obvious decision.

FWIW, an AMC of 0.3% isn't particularly excessive, it's about normal (though there are cheaper options out there of course).

orange86

Exodi said:

orange86 said:

So my L&G pot has £27.5k. It is invested in: Multi-Asset 5 Year 25% Cash Lifestyle Profile. I'm being charged c£6 a month for 'Management charge'. The Investment gain since 01 Apr 2022 is; £2,340.07(9.28%).

My Nest pension pot has £408, i only started in April so it's quite low. Money is being invested in: 'NEST Retirement Date Fund'.

My SIPP with interactive investor is empty as i only set it up last week. Paystream will do a monthly BACs transfer of £500, paid through my salary sacrifice.

I'm on a 6 month contract with current employer, it may get extended so i'll probably stay on for the day rate. All paid via umbrella.

~£6 p/m on ~£27.5k is an AMC of around 0.25% - 0.3% (depending on rounding).

Transferring to Nest doesn't make much sense as the AMC is also 0.3%. Personally I think Nest is a very poor choice of provider in general and if you're able to make Paystream pay into a different scheme other than Nest for your ongoing contributions that would be advisable, as Nest also skim 1.8% of every contribution off the top as a 'contribution charge'. Given that Nest also has limited fund choices, I think they survive on reputation and inertia alone.

If you have a SIPP with II that you already pay for then this seems like the obvious decision.

FWIW, an AMC of 0.3% isn't particularly excessive, it's about normal (though there are cheaper options out there of course).

so you'd leave the funds in L&G account?