Nest as well as S.I.P.P

olb81

Hi

I am paying into nest via work to the max my employer will add (4/5%)

I am able to make extra AVC payments

However, with nest I think they take 1.8% straight away as a fee

Is it possible to open a new SIPP somewhere else and add to that, and still get tax relief on top of any AVCs?

eskbanker

Yes, tax relief will be added to SIPP contributions, provided your aggregate contributions across all pensions are within the allowances.

olb81

so would you say thats preferable to using nest ?

Exodi

Yes and very much recommended for the reason you cite.

Pension providers will automatically claim basic rate relief on your contributions.

You will need to claim higher rate relief if applicable (though no different to NEST).

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81962644#Comment_81962644

It would avoid the 1.8% fee but would entail some admin - most on here would see that as worth it.

dunstonh

I am able to make extra AVC payments

Are you sure an AVC exists? Normally with defined contribution plans, there would not be an AVC. AVCs are typically reserved for Defined benefit pensions. With A DC pension, they would just increase your contributions into the workplace pension. i.e. pay more into Nest.

Does your Nest pension use salary sacrifice? If so, that will, in many cases exceed the 1.8% initial charge (depending on your earnings)

DRS1

They do say NEST's ongoing charges are not bad so you need to compare the SIPP's ongoing fees to NEST's to see if any of that 1.8% saving is getting eaten away.

olb81

so the ongoing 0.3 of nest is good compared to some sipp's?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81962773#Comment_81962773

https://www.moneysavingexpert.com/pensions/cheap-sipps/

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81962773#Comment_81962773

With a SIPP, you have the platform cost + the investment cost.

Combined the total cost can be as little as 0.1% or as high as 2%, depending on the platform and the investments you choose.

Pension like NEST are much simpler- they just charge 0.3% all in, with only a limited choice of investments, whilst SIPPs have thousands,

friolento

https://forums.moneysavingexpert.com/discussion/comment/81962778#Comment_81962778

The MSE list doesn't include Freetrade (owned by IG), who since beginning of 2026 have been offering their SIPP without platform fees.