NEST Pensions

oliel

I have 3 pensions 1 with Aegon with £10k (ex employer pension) in 1 with Prudential with £10k in (personal pension) ,   Another with Nest £33k and adding around £950 to this each month via my salary (total employers an employees contribution).  Im 53 and am starting to think about what I should do about a lump sum before Im 57.   Nest dont allow you to take a tax free lump sum so I'm thinking that I can transfer my pot with them elsewhere and  and then rejoin Nest - my worry is If i keep contributing to Nest I wont see any of the money until i'm 66 Id like to see some of it before then - probably around £20k to do a few bucket list things.

cloud_dog

The early access age is currently age 55, going to age 57 on 6th April 2028.

Personally I wouldn't be contributing more to Nest, above the maximum employer match, due to their 1.8% charge on your contributions.

Brie

I'm surprised at you saying that Nest won't give you 25% TFLS.  I'm sure I got one but then again my amount was a couple of thousand not what you have.  

Dazed_and_C0nfused

Brie said:

I'm surprised at you saying that Nest won't give you 25% TFLS.  I'm sure I got one but then again my amount was a couple of thousand not what you have.  

It may be because contributions are still being made (to Nest)?

LHW99

Are the Aegon / Prudential pensions actually over or under £10k?

There is the small pots rule, which allows you to take an amount up to £10k without triggering the MPAA.

75% of what is taken would be taxed at your normal rate.

oliel

cloud_dog said:

The early access age is currently age 55, going to age 57 on 6th April 2028.

Personally I wouldn't be contributing more to Nest, above the maximum employer match, due to their 1.8% charge on your contributions.

my employers put more if instead of paying me more via salary so that i dont go into higher rate tax so it works for me.   Just thought i would be able to take 25% the tax free sum sum when i was 55 but nest say i would have to transfer all of my pension nto another provider and take a tax free lump sum from there.   Then if i wanted to continue with contributions with next via my employer i would have to restart contributions with nest.

Albermarle

Dazed_and_C0nfused said:

Brie said:

I'm surprised at you saying that Nest won't give you 25% TFLS.  I'm sure I got one but then again my amount was a couple of thousand not what you have.  

It may be because contributions are still being made (to Nest)?

From their website, they do not seem to offer full flexibility on withdrawals.
They have their own 'Nest Retirement plan' 
Otherwise you can take UFPLS payments, or take the whole lot in one go.

Patfig

I thought you could take 25% tax free from Nest but that actually int the case. I have a small pot with a value of about 33K. I am late 50's and thought about taking 25% of it out, juts under 8K BUT 25% of it is tax free the other portion is taxed. As an annuity the whole pot is worth about £80 per month so I might withdraw it all buy a camper van and go enjoy myself.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82154100#Comment_82154100

You could transfer it to a pension provider which offers the flexibility to access 25% tax free and leave the rest invested, per your original thoughts.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82154162#Comment_82154162

OP - It is normally very easy to set up a new SIPP/personal pension online, and request a transfer in of your current pension.

However from previous threads, Nest do not seem to always make it easy to transfer out.

All pension providers are obliged to be on the lookout for scams, and to protect their customers from rogue operators. However Nest seem to be a bit oversensitive in this area. So if you do set up a new pension best to stick with the bigger, well known providers, and if they ask you what you intend to invest in, just say something like a FTSE 100 fund.