NEST pensions for self employed

[Nala]

Morning all,

I've been looking into doing something with my pensions, as I'm generally unhappy with there performance etc.

I've seen that the government has extended NEST pensions previously for larger companies only, to now include the self employed or sole directors.

I note they don't seem to allow transferring in any existing policies or transferring out either. You're stuck there basically! I see they 'aim' to provide returns of at least 3% above inflation on your pot which compared to a some seems pretty good and the charges are less (there is a fee for paying off the set up by the government however).

Has anyone got any experience with these pensions or good/bad words about them?

Thanks

EDIT: Not sure if this is the right place for this, so feel free to move it if needed.

 

[felix299]

As with many things the government come up with, Nest is a good concept, just poorly executed. They have introduced pension auto enrolment for employers. NEST is the default option. It is a fairly limited plan which doesn't offer particularly good value for money. For companies who are forced into offering pension arrangements for staff, it helps them meet the legal requirements, but there are better options out there.

Auto enrolment is being phased in over the next few years. If you speak to an IFA, you will be able to get a plan which is competitive with NEST from a charges point of view but will offer a better range of investment choice and far more flexibility. You will have to pay the IFA for their advice and ongoing review service though. There is no advice given with NEST and no reviews done for you. Without a doubt, regular reviews are as important, if not more important than the initial advice you receive. This applies to any investment, not just pensions

 

[Nala]

Thanks for that.

I'll agree that regular reviews and an IFA might be best, but I'm looking into it all and researching before speaking to anyone as well - I'm not always convinced even IFA's have my best interests at heart

I do see that the NEST pensions have an online viewing so you can see how it is doing and also top it up yourself. But transferring and flexibility is a possible problem.

Just looking at the lie of the land and options first.

 

[felix299]

Your absolutely right to do as much research as possible before you do anything. Re. your point on online access to your NEST pension, if anyone suggests a pension from any provider that doesn't give you online access to values, you should run a mile.

Your concerns about IFA's are also understandable given the past indiscretions of some advisers. Thankfully, as of 1st January 2013 all that has changed. Commission is now unavailable on investment products so you will pay the adviser a fee. The emphasis has to switch to the service they provide as opposed to the product they sell, otherwise they could never demonstrate added value and value for money.

Good Luck