Transferring pensions

itsthelittlethings

The below are my pensions with the charges. I'm currently paying into the Aviva through salary sacrifice, and also have two other defined benefit pensions, one larger, one pretty small, and one other DC pot that doesn't have an online login so I haven't been able to check the charges.

People's pension 8860
£6.50
0.5% management charge
0.1% savings rebate

Nest 3772
1.8% new contributions
AMC 0.3%

Aviva 1450
0.35% annual charge

Just to check, it would be advantageous to transfer my People's Pension Pot into one of the others (I'm leaning towards Aviva as although the charge is a little higher I think it performs better). I also currently pay £25 into Nest every month - I should probably stop this and increase my salary sacrifice?

Thanks.

Marcon

Pensions themselves don't perform - they are just the 'wrapper' to hold the various funds which make up your pension in a defined contribution pot. Are the holdings comparable for People's Pension and Aviva? If not, you can't really make a meaningful comparison, and certainly nobody here can know if it would be advantageous to transfer from one to the other.

It would seem to make sense to stop paying into NEST given the high contribution charge and the fact that you could be paying that monthly £25 to your current scheme by salary sacrifice and getting an NI saving as well as the tax saving.

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/81986400#Comment_81986400

Would the difference in charges not make a transfer advantageous?

Marcon

Not necessarily. Fund choice and performance are much more important considerations.

dunstonh

You don't say what type of Aviva pension it is because they have multiple versions. Some are quite basic and some are comprehensive, with thousands of investment options.

When making performance comparisons, you need to consider the risk profile is virtually identical with each option otherwise, the returns will be influenced by the differences. And as each pension will offer a different range of investment options you need to make sure you're comparing like for like.

Aviva makes sense to continue because of the employer contributions. Nest is a weak option for paying personal contributions.

Albermarle

Just to check, it would be advantageous to transfer my People's Pension Pot into one of the others (I'm leaning towards Aviva as although the charge is a little higher I think it performs better).

People's pension 8860
£6.50
0.5% management charge
0.1% savings rebate

Aviva 1450
0.35% annual charge

Aviva is cheaper ?

and one other DC pot that doesn't have an online login so I haven't been able to check the charges.

With no online login, is this a much older pension? Although charges and investment fund performance are important, it can also be be better to be in a more modern pension for various reasons. However without knowing details it is difficult to know.

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/81986441#Comment_81986441

It's not older, I left a couple of years ago.

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/81986441#Comment_81986441

I meant Aviva is slightly more expensive than Nest but will Nest charge 1.8% on a transfer in?

Marcon

NEST only has a contribution charge for 'new' contributions. There's no contribution charge on transfers in. That doesn't mean transferring into NEST is a good idea.

It's not older, I left a couple of years ago.

In that case current charges should be on the provider's website or have a look at the latest annual statement you will have received from them.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81986444#Comment_81986444

Then it would be a good idea to get on line access, so you can see the full picture for all your pensions.