Transfer Nest pension into NHS pension

Helppension2

Hi, please help - I am 33 and have a Nest pension of 6 years (worth approx £23,000) and from February work for NHS. Should I transfer my Nest pension into NHS pension? Any help would be gratefully appreciated.

Brie

I've been told that the NEST scheme has relatively high charges so you might want to check how those compare to NHS. Certainly for ease it may be best to have all your eggs in one basket. Particularly if you plan on being with the NHS for some time. The only reason I might suggest to keep things separate is that you can start taking your pension at different times. So you might still be working with the NHS in 25+ years time and could do something different with your NEST pension while leaving your NHS one intact.

JoeCrystal

Have you asked NHS for the quotes yet? Read up on how NHS pension scheme works, it is nothing like NEST pension scheme. Bear in mind that by transferring in the pension scheme, you be able to keep your NHS pension rather than unable to keep it if you leave within two years.

You should read up everything relating to NHS pension scheme so you know excatly what you are entitled to and why it is so useful and extremely generous.

Marcon

I've been told that the NEST scheme has relatively high charges so you might want to check how those compare to NHS.

The high charges have already happened - there's a 1.8% contribution charge which will already have been levied on the contributions made to OP's pot with NEST. Ongoing charges are 0.3%.

Albermarle

As above the NHS is a very good Defined Benefit ( DB ) scheme, where each year you work you build up an entitlement to a guaranteed pension income when you retire.

Defined benefit pensions | MoneyHelper

The NEST pension is a totally different Defined Contribution ( DC) scheme, where you build up a pot of money .That sounds OK, but you have to build a very large pot to get the same sort of benefits that a DB scheme offers.

Defined contribution pension schemes | MoneyHelper

DB schemes cost the employer a lot more to run and mostly only the public sector offer them nowadays.

So if you transfer the Nest Pot to the NHS scheme, you can add to the NHS pension you will eventually receive, although you need to read all the info/rules involved.

Alternatively you can keep the DC pot.

MX5huggy

You need to get the quote from the NHS pension on how much guaranteed inflation linked annual pension you will receive in exchange for the approx £25k you will get. Once you have that quote you can decide if you think it’s a good idea.

Helppension2

Thank you so much for all your comments. From what I can grasp, if I transfer in my NEST pension to the NHS pension, even if I do not pass my 6 month probationary period, it may be a good thing -as the NHS pension has good benefits for the future, which I will not be able to obtain with another pension. It was mentioned, that if I leave NHS before 2 years the fact that I transferred in my NEST pension it would allow me to obtain full benefit of an NHS pension. Please let me know if I am incorrect in my thinking. Many thanks for your time.

daveyjp

IMHO even if you only intend on staying in the NHS for just a few years it is probably a no brainer. I was recently with a friend who worked in a role with a DB pension (IIRC a bank) , but was only there 5-6 years and had forgotten about the pension she paid into.

Now she's close to retirement she made enquiries and its is worth a few thousand pounds a year.

JoeCrystal

https://forums.moneysavingexpert.com/discussion/comment/81946702#Comment_81946702

Well, better to start the ball rolling as quickly as possible! It can take a while to get this sorted so request the quote asap!

LHW99

Also, I believe you have only a short time to make the decision to transfer (12 months?). If you miss that deadline you will have to keep the NEST fund.

SacredStephan

You can access the NEST pension from age 57. You can normally only access the NHS pension from age 67, maybe age 68 if/when state pension age increases.