Consolidating pensions
pboae
Posts: 2,719 Forumite
My husband is nearly 50 and has 3 small personal pensions. The total pot is about £70,000. All 3 pensions have high fees and poor returns. He won't be paying anymore in, as we live overseas now. We have other investments for our retirement, so these pensions aren't critical for us. However, he's still unhappy about how much is being eaten up in fees. I also suspect commission is still being paid to the advisors who set them up decades ago.
He's thinking about transferring them all into NEST, if it's possible, given that we are non-dom, or some other scheme with very low charges. If it was NEST, he would move his pot into the high-risk fund. As I understand it, he wouldn't have to pay the initial fee to transfer money in, so it would just be the 0.3% fee.
Really, all he's looking for is somewhere for the money to sit for the last few years with low costs and the potential for some growth.
Are there any obvious pitfalls?
He's thinking about transferring them all into NEST, if it's possible, given that we are non-dom, or some other scheme with very low charges. If it was NEST, he would move his pot into the high-risk fund. As I understand it, he wouldn't have to pay the initial fee to transfer money in, so it would just be the 0.3% fee.
Really, all he's looking for is somewhere for the money to sit for the last few years with low costs and the potential for some growth.
Are there any obvious pitfalls?
When I had my loft converted back into a loft, the neighbours came around and scoffed, and called me retro.
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Comments
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NEST is really intended for workplace pensions, not sure if you can transfer an existing pension in unless your workplace scheme uses it?
Could consider a personal pension - can get charges 0.4% or so: https://www.cavendishonline.co.uk/pensions/personal-pensions/0 -
He's thinking about transferring them all into NEST
Does that really fit with someone that feels their existing pensions have poor returns? NEST only has a handful of funds.
Most modern pensions have no initial charges. Nest has initial charges. Indeed, the Nest initial charge is the same as the average advice charge taken by advisers. So, you would, in effect, be going DIY but paying the same as advice.
Modern pensions have ongoing charges in line with Nest.I also suspect commission is still being paid to the advisors who set them up decades ago.
Highly unlikely as most pensions didnt work that way.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks zagfles, I'll check Cavendish. A low cost personal pension would be fine.
It seems NEST won't work anyway if it has to be workplace based. However, as far as I can see money transferred in from other schemes isn't subject to the initial charge.
I've confirmed that commission is still being paid on one of them, but I still don't know about the other two.When I had my loft converted back into a loft, the neighbours came around and scoffed, and called me retro.0 -
In theory Nest allows transfers in and does not charge for them.In fact though they will not fill in the transfer forms for the other company and they insist on the other company conforming to their requirements.
This makes it pretty impossible for most people to transfer into Nest0 -
You should check transfer values.
I have a pension that has an MVA (market value adjustment) of about 28% before age 65.0
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