Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • tgroom57
    • By tgroom57 5th Oct 19, 9:11 PM
    • 1,375Posts
    • 13,105Thanks
    tgroom57
    Nest Pension - is this low value pot?
    • #1
    • 5th Oct 19, 9:11 PM
    Nest Pension - is this low value pot? 5th Oct 19 at 9:11 PM
    My daughter has been contributing £75 a month from her earnings into a Nest Pension, since April 2013 (ie more than 6 years). She says the "pot value" is currently £2,787.

    Even allowing for her slightly lower income in previous years, this looks to be about half what she's paid in. Not taking account of the bit her employer pays in, or the taxman pays in. I am aghast, quite frankly.

    Might a Standard Life Stakeholder pension be better?

Page 1
    • triplea35
    • By triplea35 6th Oct 19, 4:02 PM
    • 276 Posts
    • 127 Thanks
    triplea35
    • #2
    • 6th Oct 19, 4:02 PM
    • #2
    • 6th Oct 19, 4:02 PM
    Not an expert, and just speaking as a father who takes an interest in his son's Nest Pension.

    If your daughter knows her pension pot value, presumably she can log in to her Nest account and see all contributions that have been made from when the account was set up. She should also be able to see which default retirement date fund she was put in, and with a little searching can find how that particular fund has performed.

    I have just looked at five of the most recent, longest dated funds (2055 to 2059) in April 2013, and compared with August 2019 the unit prices have all increased around 50% over the period.
    Difficult to see how your daughter could have lost so much over the period.

    The default fund has a 5 year Foundation Phase, where the investments are very very cautious to minimise risk of loss. I did hear that the reason behind that is that most new account holders are new to pensions and they do want them to be put off by losses.
    After 5 years the fund goes into a growth stage, which is still relatively low risk, and then the final ten years, a consolidation phase, where the risk is again reduced significantly, although I understand you can choose to opt out of this phase now
    Personally I didn't like the sound of the Foundation phase, so after discussion with son we switched to another Fund. There is a limited choice, Higher Risk and Sharia, which are clearly higher risk but have significantly out performed the dated retirement funds.
    Last edited by triplea35; 06-10-2019 at 4:59 PM.
    • tgroom57
    • By tgroom57 6th Oct 19, 6:24 PM
    • 1,375 Posts
    • 13,105 Thanks
    tgroom57
    • #3
    • 6th Oct 19, 6:24 PM
    • #3
    • 6th Oct 19, 6:24 PM
    Difficult to see how your daughter could have lost so much over the period.
    Originally posted by triplea35

    My thoughts exactly.

    • JoeCrystal
    • By JoeCrystal 7th Oct 19, 4:20 AM
    • 1,951 Posts
    • 1,370 Thanks
    JoeCrystal
    • #4
    • 7th Oct 19, 4:20 AM
    • #4
    • 7th Oct 19, 4:20 AM
    My thoughts exactly.
    Originally posted by tgroom57
    As triplea35 pointed out, this doesn't make any sense. Have your daughter checked that all contributions from her payslip went into her fund? It seems unlikely for your daughter to be down 50%!

    This subforum is a bit of a ghost town. It might be worth reposting this topic on the main Pensions, Annuities & Retirement Planning forum so more people may be able to help you.
    Last edited by JoeCrystal; 07-10-2019 at 4:23 AM.
    • xylophone
    • By xylophone 7th Oct 19, 3:21 PM
    • 31,613 Posts
    • 19,605 Thanks
    xylophone
    • #5
    • 7th Oct 19, 3:21 PM
    • #5
    • 7th Oct 19, 3:21 PM
    https://www.nestpensions.org.uk/schemeweb/NestWeb/faces/public/MUA/pages/loginPage.xhtml

    Has she logged in and checked her account?
    • jamesd
    • By jamesd 8th Oct 19, 11:33 AM
    • 23,495 Posts
    • 15,831 Thanks
    jamesd
    • #6
    • 8th Oct 19, 11:33 AM
    • #6
    • 8th Oct 19, 11:33 AM
    Two things to check:

    1. is "pot value" the actual balance now or is it the projected annual income?
    2. if it's the current balance it's too low, so check that all of the monthly payments into the account have been made.
    • tgroom57
    • By tgroom57 8th Oct 19, 12:14 PM
    • 1,375 Posts
    • 13,105 Thanks
    tgroom57
    • #7
    • 8th Oct 19, 12:14 PM
    • #7
    • 8th Oct 19, 12:14 PM
    ;I'm planning to check it myself tonight.

    • Afraid of Kittens
    • By Afraid of Kittens 12th Oct 19, 8:35 PM
    • 312 Posts
    • 354 Thanks
    Afraid of Kittens
    • #8
    • 12th Oct 19, 8:35 PM
    • #8
    • 12th Oct 19, 8:35 PM
    Ive put my NEST pot into the Sharia fund rather than the default fund.
    These are the performance figures for the various funds:-

    https://www.trustnet.com/fund/price-performance/p/pension-funds?manager=NETF&tab=fundOverview&pageSize=25

    No fund has dereased in value by 50%.

    Her online NEST account will have annual statements of employer and employee contributions and growth per year.
    I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.
    • loulou41
    • By loulou41 19th Oct 19, 7:56 PM
    • 2,861 Posts
    • 205 Thanks
    loulou41
    • #9
    • 19th Oct 19, 7:56 PM
    • #9
    • 19th Oct 19, 7:56 PM
    My daughter has been contributing £75 a month from her earnings into a Nest Pension, since April 2013 (ie more than 6 years). She says the "pot value" is currently £2,787.

    Even allowing for her slightly lower income in previous years, this looks to be about half what she's paid in. Not taking account of the bit her employer pays in, or the taxman pays in. I am aghast, quite frankly.

    Might a Standard Life Stakeholder pension be better?
    Originally posted by tgroom57

    Reading your post my son has been contributing since 2013 as well. Have noticed his pot value is less than £3000. Wil ask him to check his account online. Thanks
    • george4064
    • By george4064 4th Nov 19, 6:18 PM
    • 1,351 Posts
    • 1,348 Thanks
    george4064
    Ive put my NEST pot into the Sharia fund rather than the default fund.
    These are the performance figures for the various funds:-

    https://www.trustnet.com/fund/price-performance/p/pension-funds?manager=NETF&tab=fundOverview&pageSize=25

    No fund has dereased in value by 50%.

    Her online NEST account will have annual statements of employer and employee contributions and growth per year.
    Originally posted by Afraid of Kittens
    I hope you realise you are taking a lot of unnecessary risk here, remember that past performance should not be treated as an indication of future performance.

    The Sharia Fund is very concentrated to the US (70%) and the tech sector (40%), but I guess you're already aware of this right?
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2017 - #003 £12,427.51 (104%)
    Save £12k in 2018 - #004 £9,165.94 (46%)
    Save £12k in 2019 - #007 £11,332.36 (94%)
    • Afraid of Kittens
    • By Afraid of Kittens 10th Nov 19, 10:36 AM
    • 312 Posts
    • 354 Thanks
    Afraid of Kittens
    I hope you realise you are taking a lot of unnecessary risk here, remember that past performance should not be treated as an indication of future performance.

    The Sharia Fund is very concentrated to the US (70%) and the tech sector (40%), but I guess you're already aware of this right?
    Originally posted by george4064
    Well aware. I have 3 Local Government pensions - 2 that I will receive at 60 with a nice lump sum. I can afford the gamble of putting my NEST pension in the Sharia fund. A massive gamble. If it pays off I will be very happy. If it doesnt I still have my other pensions.
    I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.
    • Richierichbristol
    • By Richierichbristol 16th Nov 19, 10:47 PM
    • 25 Posts
    • 11 Thanks
    Richierichbristol
    Is it really a massive gamble? I to have the same fund
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

350Posts Today

4,576Users online

Martin's Twitter