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  • FIRST POST
    • SlaveToMyCats
    • By SlaveToMyCats 14th Jan 20, 7:08 PM
    • 9Posts
    • 1Thanks
    SlaveToMyCats
    Salary Sacrifice into NEST
    • #1
    • 14th Jan 20, 7:08 PM
    Salary Sacrifice into NEST 14th Jan 20 at 7:08 PM
    I am considering making additional contributions to a NEST pension on a salary sacrifice basis, as I will save a significant amount of tax. I also some way below the size of pension pot I should have at my age.


    Is there anything to beware of with NEST? The 'contribution fee' seems very high, and I worry this will mean that I have to leave money in there for some time before moving out into a SIPP. The contribution fee is obviously still a lot less than I'd pay in tax if I didn't contribute the money to NEST.
Page 1
    • JoeCrystal
    • By JoeCrystal 15th Jan 20, 5:28 AM
    • 2,100 Posts
    • 1,516 Thanks
    JoeCrystal
    • #2
    • 15th Jan 20, 5:28 AM
    • #2
    • 15th Jan 20, 5:28 AM
    While the contribution fees are high, the annual management charge is 0.3% which is better than many pension schemes charges like 0.75%, for example for default funds in auto-enrolment schemes.

    But the benefits you get from salary sacrifice will outweigh the charges, especially if the employer shares their NI savings.
    • Albermarle
    • By Albermarle 15th Jan 20, 10:01 AM
    • 2,237 Posts
    • 1,473 Thanks
    Albermarle
    • #3
    • 15th Jan 20, 10:01 AM
    • #3
    • 15th Jan 20, 10:01 AM
    I am considering making additional contributions to a NEST pension on a salary sacrifice basis,
    AS NEST is presumably your workplace pension , then you have no choice if you want to benefit from the salary sacrifice arrangement.
    Is there anything to beware of with NEST? The 'contribution fee' seems very high, and I worry this will mean that I have to leave money in there for some time before moving out into a SIPP. T
    The fee structure does mean it is better to leave the money there for a few years to get a low average fee.
    For what reason would you want to move the money to a SIPP ?
    • SlaveToMyCats
    • By SlaveToMyCats 16th Jan 20, 1:38 AM
    • 9 Posts
    • 1 Thanks
    SlaveToMyCats
    • #4
    • 16th Jan 20, 1:38 AM
    • #4
    • 16th Jan 20, 1:38 AM
    My logic is simply that nest seems like a bad deal vs Vanguard etc.



    But the arguement that the platform fee is quite low maybe means I can simply leave it where it is. After all I'll have paid the contribution fee already!
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