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    • loulou41
    • By loulou41 25th Feb 19, 9:54 PM
    • 2,861Posts
    • 205Thanks
    Nest pension
    • #1
    • 25th Feb 19, 9:54 PM
    Nest pension 25th Feb 19 at 9:54 PM
    Son who works for an agency has been enrolled with Nest. There is not much in the pension pot. I want to help and am wondering whether it will be to his advantage for me to top up his nest pension with a lump sum when I can afford it or is it better to save this money in an isa. Thanks
Page 1
    • JoeCrystal
    • By JoeCrystal 26th Feb 19, 11:52 AM
    • 1,956 Posts
    • 1,374 Thanks
    • #2
    • 26th Feb 19, 11:52 AM
    • #2
    • 26th Feb 19, 11:52 AM
    I believe that anyone can contribute to someone else’s NEST retirement pot. They’ll need to pay by debit card and tell them the NEST ID of the member. I don't know if they get tax relief on it though.
    Last edited by JoeCrystal; 26-02-2019 at 3:26 PM.
    • planteria
    • By planteria 27th Feb 19, 10:00 AM
    • 5,118 Posts
    • 1,144 Thanks
    • #3
    • 27th Feb 19, 10:00 AM
    • #3
    • 27th Feb 19, 10:00 AM
    i think first of all you need to understand Pensions and ISAs, and the differences between them. and secondly, if you want to invest for your son via a Pension, decide whether his existing Nest scheme is the right choice of Pension: Nest is considered to be a 'basic' option.
    • cloud_dog
    • By cloud_dog 28th Feb 19, 9:45 AM
    • 4,619 Posts
    • 2,893 Thanks
    • #4
    • 28th Feb 19, 9:45 AM
    • #4
    • 28th Feb 19, 9:45 AM
    OP you may also want to consider if a LISA may be a better option? For a basic rate tax payer (who's salary isn't paid via salary sacrifice) they both benefit equally via the tax relief for pension and bonus for LISA (uplift of 25%).

    The LISA has the advantage of being able to be used to buy a property.

    EDIT....You would be better off moving this post to the main pension forum.
    Last edited by cloud_dog; 28-02-2019 at 10:38 AM.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Afraid of Kittens
    • By Afraid of Kittens 6th Apr 19, 10:50 AM
    • 312 Posts
    • 354 Thanks
    Afraid of Kittens
    • #5
    • 6th Apr 19, 10:50 AM
    • #5
    • 6th Apr 19, 10:50 AM
    If he is going to remain in a NEST scheme then he might consider the following to potentially maximise his returns.

    When someone is enrolled their money is placed into a lower risk 'Foundation Phase' for about 5 years. This means their money earns less interest for 5 years.

    After 5 years their money is placed into one of the default date fund for 30 or so years - the so called 'Growth Phase'.

    Then 10 years before retirement date their money is placed into a low risk 'Consolidation Phase'.

    This basically means that potentially you could lose 15 years of extra compounded interest.

    If you son wants potentially more interest on his pension pot and potentially a higher return then e should switch his money out of the default fund to a higher risk potentially higher interest fund.

    The best performing so far have been the Sharia fund and the Higher Risk fund.

    I have put my NEST money into the Higher Risk Fund - although I would have had more of a return in the Sharia fund.

    The High Risk fund is volatile and can drop and increase - although the overall direction is upwards.

    If he had put his money into a High Risk Fund on 2nd January 2019 the unit price was 2.0916. Yesterday the unit price was 2.3160 an increase of 10.72% in 3 months.
    I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.
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