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  • FIRST POST
    • Dumon Kri
    • By Dumon Kri 21st Oct 19, 10:08 AM
    • 35Posts
    • 22Thanks
    Dumon Kri
    Picking an Auto-Enrolment Pension Provider
    • #1
    • 21st Oct 19, 10:08 AM
    Picking an Auto-Enrolment Pension Provider 21st Oct 19 at 10:08 AM
    Hello!

    I've recently joined a new company based out of Germany. They are going to be providing pension contributions and as I'm the first one they are doing this for they want me to pick a pension provider.

    I was looking at People's Choice or maybe Nest, but I'm unsure who's better. I read that Nest has more asset classes and more choices? I was wondering if anyone has any recommendations? Or any companies with big no's?

    I'm 32 so still some ways to go!
Page 1
    • SonOf
    • By SonOf 21st Oct 19, 11:01 AM
    • 1,761 Posts
    • 2,023 Thanks
    SonOf
    • #2
    • 21st Oct 19, 11:01 AM
    • #2
    • 21st Oct 19, 11:01 AM
    Many of the workplace schemes require a minimum number of employees to be enrolled. If it is just you then you are going to be limited to Nest, Peoples Pension or just one or two others.

    It's going to be much the muchness when you are looking at the budget end.
    • Albermarle
    • By Albermarle 21st Oct 19, 11:56 AM
    • 1,739 Posts
    • 1,121 Thanks
    Albermarle
    • #3
    • 21st Oct 19, 11:56 AM
    • #3
    • 21st Oct 19, 11:56 AM
    NEST deducts an initial 1.8% of all contributions , which is highly unusual nowadays . On the other hand their annual charge of total 0.3% is pretty low.
    Peoples pension charges zero on initial contributions and 0.5% annually,

    Perhaps more importantly you should try and persuade your employer to contribute more than the minimum amount , which is 3% from the employer and 5% for the employee.
    A total 8% contribution is insufficient to build up a good pension pot even though you have many years ahead.
    You could ask as a minimum that they match your 5% or that if you add more than 5% they will match that .
    Also if you can pay via a salary sacrifice arrangement that would be even better.
    • greent
    • By greent 23rd Oct 19, 8:27 PM
    • 8,234 Posts
    • 83,668 Thanks
    greent
    • #4
    • 23rd Oct 19, 8:27 PM
    • #4
    • 23rd Oct 19, 8:27 PM
    We have our (v small) co pension scheme via NEST - and today my accountant said that they would not rate NEST at all....
    I am the master of my fate; I am the captain of my soul
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    • xylophone
    • By xylophone 23rd Oct 19, 8:36 PM
    • 31,597 Posts
    • 19,593 Thanks
    xylophone
    • #5
    • 23rd Oct 19, 8:36 PM
    • #5
    • 23rd Oct 19, 8:36 PM
    It would seem that your company should be arranging this?

    https://thepeoplespension.co.uk/help/knowledgebase/overseas-company-uk-workers-pay-uk-taxes-automatic-enrolment-duties/
    • Dumon Kri
    • By Dumon Kri 27th Oct 19, 12:14 PM
    • 35 Posts
    • 22 Thanks
    Dumon Kri
    • #6
    • 27th Oct 19, 12:14 PM
    • #6
    • 27th Oct 19, 12:14 PM
    Many of the workplace schemes require a minimum number of employees to be enrolled. If it is just you then you are going to be limited to Nest, Peoples Pension or just one or two others.

    It's going to be much the muchness when you are looking at the budget end.
    Originally posted by SonOf
    Ah, I didn't realise because it's just me that I'd be limited, good to know thank you
    • Dumon Kri
    • By Dumon Kri 27th Oct 19, 12:20 PM
    • 35 Posts
    • 22 Thanks
    Dumon Kri
    • #7
    • 27th Oct 19, 12:20 PM
    • #7
    • 27th Oct 19, 12:20 PM
    NEST deducts an initial 1.8% of all contributions , which is highly unusual nowadays . On the other hand their annual charge of total 0.3% is pretty low.
    Peoples pension charges zero on initial contributions and 0.5% annually,

    Perhaps more importantly you should try and persuade your employer to contribute more than the minimum amount , which is 3% from the employer and 5% for the employee.
    A total 8% contribution is insufficient to build up a good pension pot even though you have many years ahead.
    You could ask as a minimum that they match your 5% or that if you add more than 5% they will match that .
    Also if you can pay via a salary sacrifice arrangement that would be even better.
    Originally posted by Albermarle
    Yeah, I'm, all good on the contributions side thanks. I got them to match my previous employer so I'm contributing 6% and they are contributing 9%. I've also got a S&S ISA that I'm contributing to.

    People's Pension charges are actually coming down based on your saved amount according to their website https://thepeoplespension.co.uk/changes-to-our-annual-management-charge/ so it's looking more appealing. Especially if my company is fine paying the opening fee which Nest doesn't have.
    • Dumon Kri
    • By Dumon Kri 27th Oct 19, 12:21 PM
    • 35 Posts
    • 22 Thanks
    Dumon Kri
    • #8
    • 27th Oct 19, 12:21 PM
    • #8
    • 27th Oct 19, 12:21 PM
    You're right I think they should, but the good thing for me is I think they're giving me the opportunity to find the company. I'm not complaining regardless of it costing me a little leg work.
    • norsefox
    • By norsefox 27th Oct 19, 1:28 PM
    • 97 Posts
    • 75 Thanks
    norsefox
    • #9
    • 27th Oct 19, 1:28 PM
    • #9
    • 27th Oct 19, 1:28 PM
    NEST deducts an initial 1.8% of all contributions , which is highly unusual nowadays . On the other hand their annual charge of total 0.3% is pretty low.
    Peoples pension charges zero on initial contributions and 0.5% annually,

    Perhaps more importantly you should try and persuade your employer to contribute more than the minimum amount , which is 3% from the employer and 5% for the employee.
    A total 8% contribution is insufficient to build up a good pension pot even though you have many years ahead.
    You could ask as a minimum that they match your 5% or that if you add more than 5% they will match that .
    Also if you can pay via a salary sacrifice arrangement that would be even better.
    Originally posted by Albermarle
    The PP charges will become tapered soon (£50k+ dropping to 0.3%?)

    My dealings with PP have always been positive. They didn’t expect to be as successful as they have been. They’re a long way short of the big pensions players, but from an AE point of view they’re massive.

    If it’s a choice between Nest and PP there’s no question in my book.
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