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    • machiavelli27
    • By machiavelli27 19th May 17, 12:28 PM
    • 17Posts
    • 4Thanks
    1 or 2 Pensions?
    • #1
    • 19th May 17, 12:28 PM
    1 or 2 Pensions? 19th May 17 at 12:28 PM
    I have a question.

    I have my own private pension, that I took out before the company I work with had to auto enrol. They have now enrolled and is now paying into nest. The auto payment % into the nest pension is lower than what I was paying into my own pension. Both the nest and private pension run a similar interest rates however, my private pension has significantly lower charges. At the moment I have reduced my paying in to my private pension, to a point where my total contributions remain the same. Is it better to go all into one pension? Is it better to transfer the value of my other pension across into nest? Does it make a difference? Is it better to have 1 pension at X or two pensions with a total value =X?
Page 1
    • dunstonh
    • By dunstonh 19th May 17, 1:01 PM
    • 92,634 Posts
    • 59,945 Thanks
    • #2
    • 19th May 17, 1:01 PM
    • #2
    • 19th May 17, 1:01 PM
    Is it better to go all into one pension?
    Not necessarily. We have a number of people who use the AE scheme to get maximum employer benefit but then use their own individual scheme for anything more than that (although those people typically have larger values built up already).

    Is it better to transfer the value of my other pension across into nest?
    If its better, then yes. If its not better, then no. You would need to compare the pensions.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • bostonerimus
    • By bostonerimus 19th May 17, 1:10 PM
    • 1,826 Posts
    • 1,171 Thanks
    • #3
    • 19th May 17, 1:10 PM
    • #3
    • 19th May 17, 1:10 PM
    NEST charges are quite high....I especially dislike the charge on contributions. However, I would not change things right now as your employer will be contributing to NEST and you want to get that money. So I'd contribute to NEST to get the employer contribution and fund your other pension within the statutory limits if it is less expensive and you are happy with the funds offered. The next question is how have you invested the money in your pensions?
    • AnotherJoe
    • By AnotherJoe 19th May 17, 8:47 PM
    • 9,420 Posts
    • 10,413 Thanks
    • #4
    • 19th May 17, 8:47 PM
    • #4
    • 19th May 17, 8:47 PM
    I think there's a certain benefit in having your own pension outside your employers, especially if the charges are lower. Obviously keep the employers one as well to get the benefits from them then top up your own.

    I suspect that going forward it will become common upon moving jobs, to move your old employers pension into your private one when you change jobs, so you've always got your all old pensions in the one place, and your current employers in your current employers.

    (this is of course subject to any guarantees and the like where it woudl be best to retain an old employers but those will become few and far between)
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