Work place pension

BigBirdTina

Hello all

I have just been auto enroled onto my works pension with "Nest"

There sight says they invest in businesses which obviously means when I get to retire I may have lost money (I know it can go up or down BUT!)

I don't know what to do as nobody in work seems to be able to tell me any detail atall. I am currently 63 only just started the pension I retire at 67 so only got 4 years left

Is it even worth it?

Would an ISA be a safer option atleast I am guaranteed to get back what I have paid in plus some interest.

I don't know who I can go and talk to for advice.

Thank you

itsthelittlethings

When you pay into the pension you get tax relief and your employer pays in too. I don't think you'll find a better return on your money anywhere else.

MeteredOut

Investing is for the longer term, and may suggest that is 5 years+, so if you plan to draw down this pension in 4 years, the risk might higher. But, you do get the tax relief benefit as stated above.

However, do you not have to start drawing down your pension when you are eligible for your state pension. You can take it before (since you are over 57) or after.

I'd recommend setting up a few session with PensionWise

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

They do not (cannot) offer advice, but will give you the information that will hopefully help you make your decision.

LHW99

Is this the fund you have at NEST?

https://www.nestpensions.org.uk/schemeweb/nest/investing-your-pension/fund-choices/ready-to-retire-fund.html

It says:

"If you have less than £10,000 in your pot, you’ll be moved into the
Ready to Retire Fund, which is set up as a short-term home for your
pension pot. It’s a low-risk fund that works to protects your pension
pot from falls in the financial markets while you decide what to do with
your money."

So maybe not too much to worry about?

dunstonh

Is it even worth it?

You get free money from the employer. Do you not think that free money is worth it?

Would an ISA be a safer option atleast I am guaranteed to get back what I have paid in plus some interest.

Assuming you mean cash ISA and not stocks and shares ISA, cash removes investment risk, but it increases inflation and shortfall risk. Plus, you wouldn't get the free money from the employer.

daveyjp

Pension is in effect deferred salary, so by not taking it you are agreeing to being paid less than the role is worth.

Brie

I joined NEST at the age of 64 3/4 when I started a very part time job meant to glide me towards retirement. I was only working 10 hours a week on just above minimum wage but figured it might get me enough to eventually celebrate with a fish supper from the chippy. Hours got increased to 14/week so a bit more ££ dripped into my pension. Stopped working at 67 1/3 and was pleased to get a full payout of over £1,000. Well worth it.

Albermarle

https://forums.moneysavingexpert.com/discussion/6679105/work-place-pension

I don't know who I can go and talk to for advice.

You have to pay for regulated financial advice. In your position the cost would probably be more than you have in the pension, and no finacial advisor would be interested anyway.

Any info you see on this forum ( or from PensionWise) is general guidance only, although it can be useful of course.

There sight says they invest in businesses which obviously means when I get to retire I may have lost money (I know it can go up or down BUT!)

With all these types of pension, your money is held in investment funds, because in the long term these will almost always go up. However as pointed out by a previous poster your money will be in a low risk fund, that will not go up or down very much, if at all.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82095548#Comment_82095548

I have to admit that if I read that page I would have no clue what the fund was invested in. I would also have been left with the distinct feeling someone had been patting me on the head and telling me not to worry about it.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82096411#Comment_82096411

The very large majority of NEST customers probably are not interested what is in the fund, and if details were supplied they probably would not understand them anyway.

EnPointe

https://forums.moneysavingexpert.com/discussion/comment/82095566#Comment_82095566

this issa bizarree, unhelpful and potientially counter productive statement