Nest as well as S.I.P.P

friolento

If you decide to go for a SIPP, check Topcashback. There are a few cashback offers for SIPPs.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81962858#Comment_81962858

Yes, MSE's analyses of pensions and investments aren't up to the standard of areas closer to their comfort zone, such as savings accounts, but hopefully there's some useful background reading for OP to get up to speed with SIPPs…

flopsy1973

SSorry to hijack this but my partner in similar position maxing out company contribution through salary sacrifice. She is also adding separately 600 monthly to the nest scheme so is this classed as AVC ? We were thinking to open a SIPP with the separate 600 monthly ?

Also can you transfer out of nest to SIPP?

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81963824#Comment_81963824

No, that is not an AVC. An AVC is a type of pension offered by employers where increments cannot be made into the main scheme. For example, most public sector pensions. Your partner is just making increased contributions.

Yes you can transfer out of Nest to a SIPP. However, the employer will rarely pay into any other pension apart from the auto-enrolment scheme.

Whilst Nest has that 1.8% initial charge (which is rare amongst schemes nowadays), salsac means that there is an NI saving that won't be possible if a SIPP is used.

flopsy1973

Realise we won't be able to transfer employer scheme just wondering if was worthwhile to transfer existing 66k in nest to another better pension provider?

So just to clarify as she contributes via sal sac can she open a SIPP for the extra 600 monthly ? If so what would be wrong with using platform like freetrade?

NoMore

Can she not just increase her salary sacrifice ? It's more tax efficient (currently) than switching to relief at source in a SIPP.

flopsy1973

I will get her to check she is contributing max to get employer max. Thought there was a limit you could contribute through sal sac ? Would this still be the best option considering its going into the nest scheme?

NoMore

Can't salary sacrifice below minimum wage, and they are moving to restrict the amount of NI saving (which is the advantage that salary sacrifice gives compared to RAS) to 2k contribution per year from 2029, you will still be able to salary sacrifice more than 2k but no NI saving above that.

flopsy1973

ShE says no she can't salary sacrifice more ? Can empowers refuse to do it ? She earns about 26k a year. Is free-trade a good platform with good range of funds ?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81965609#Comment_81965609

As above, sal sac can't be used to reduce an employee's remuneration below the minimum wage - is £26K her gross or net pay?