For anyone looking at changing their fund preference for growth, I'll just state don't rule out NEST's Sharia fund simply due to its religious conotations. It's is currently nests only 100% equity fund and has, if you look at the latest investment report, both a higher risk of volatility and has experienced higher returns then the 'Higher Risk' fund.
The Sharia fund will invest all of your pot where as the high risk will only invest 70%. This guy didn't even mention it? This fund has the best over all return since the date if inception.
Hey Pete, If the video wasn't as helpful as it was I'd give you a like just for keeping your channel going as long as you have. I have a Nest pension and like you've said never really thought about it until recently. Was thinking of keeping it open while moving the majority to VG but like you say, partial transfers may not be an option. I will find out. If not, a higher risk option maybe the way to go. Thanks for sharing. You have a sub.
Hello, I'm 26 and I'm considering moving to a higher risk pension via NEST, do you think in the current climate that would be wise? I was going to wait a year and see what the general economical landscape looks like and perhaps do it then.
Tom, if you're 26, it's going to be 30 years at least until you take the money back out, so don't worry about the economy in the very short term. Read The Simple Path To Wealth by JL Collins, or my own Meaningful Money Handbook (petesbook.com) and learn about how investing works - I promise it'll serve you very well...
I am having trouble getting my money out of Nest, I have filled in forms and sent them back, via emal, and when I last spoke to them they said they would send more forms, with our present postal system in the UK, I may not get the forms; feels like ever decreasing circles....
Great video. I am with nest I am 31 but planning as much as possible now. I have a stocks and shares ISA that I am building up month on month. The NEST pot will be a bonus, I should have enough in my ISA without the need for NEST if all goes to plan haha. I plan on using up the NEST to allow my main pot in the ISA to compound for a few more years. One question I have though. Lets says I'm 57 and can now start to withdraw. I know you can take a 25% tax-free lump sum that's all good. But let's say I retire and take out the 25%, starting from the next tax year can I then take out £12,500 (or whatever the personal allowance may be by then) tax-free a year assuming I have no other income? Hope that makes sense haha, EDIT** I think I am correct in my assumptions I just found an article on it. Can I then ask this...... My plan is £12,500 a year withdraw from NEST then say another £10,00 from my ISA. This would be £22,500 all tax-free correct? ** Thanks, Sean
Yes, exactly. Once you’ve taken tax-free cash then anything else you take from a pension is taxable. But if you have no other income, then the first £12,500 would fall within the personal allowance and hence be tax-free. Note the Personal Allowance changes most years. Anything you take out of an ISA is tax-free, always.
@@TheSoundlessSound0 Sean here. Yeah that would 100% but that's not until 67 for me anyway. Either way you would just reduce pension withdrawal by £800 a month if you didn't want to pay any tax. Or if you want more money to spend then you would just pay the tax at that point. Im hoping I will be able to retire at about 50 all being well. So I would have a 17 year run tax free. If your really wanted to not pay any tax and you had enough in the ISA for living expenses then you could take out the £12500 from the pension and put it into the ISA for 10 straight years then just withdraw difference between state pension and personal allowance, around £450 in this case but I don't think that would really make much sense
It is a workplace pension provider. Your employer's workplace pension scheme sets you up with such a provider (in this case, Nest, but other providers are available; your employer chooses which one they wish to use), and then you and your employer pay an amount into this scheme every time you receive a payslip.
@@TheSoundlessSound0 There's an auto opt-in threshold set by the government (currently £10,000/year gross income). Your employer is required to notify you in writing that this will be happening, with 1 month notice once you reach the threshold, or I believe 3 months if you are a new employee that is already over the threshold. You are permitted to opt-in early or opt-out at any time.
@@TheSoundlessSound0 If you are opted in, you'll see the deductions on your payslips as "Pension", "AVC", "voluntary contributions", or similar. You'll also see your employer's pension contributions in the bottom half, where the employer's NI contributions are also stated.
Can I suggest an investment platform (online and phone) charges/fees focused comparison video, showing a league table and table of shame, so that viewers can avoid or minimise having their gains eroded by charges and fees. And in this difficult time, losses further eroded by fees.
I'm 23 years old. And my employer started with Nest recently,I wanted to turn it off and have my money safe with me but now I saw your video,so what do I advise,,shall o leave it
im 48 and have about 11000 in my nest scheme which me and my employer pay into, i also have about 18000 in an old reassure pension, nest annual managment charge is less that reassure should i transfer in and join the 2 together
Are you working elsewhere, Gerry? If so, then if you qualify, then you will be automatically enrolled in a pension scheme, but it might not be the NEST version. Check with your employer's HR or pension department
@@ab16426 totally disagree... Now compare it to many pension schemes where the annual charge is 0.6% plus etc (plus they also have initial charges and see how quickly that suddenly overtakes the total fee you've paid via nest... There's very few schemes that offer lower fees than nests 0.3% and over a multi decade timeframe it more than makes up for the initial higher first year fee
If your employer offers the NEST pension and only the NEST pension opting out means losing out on lots of "free" money (the employer contribution) over your working life. If you can afford the employee contribution you'd be foolish to opt out. 2 per cent of the contribution is not worth getting hung up on - your future self will thank you for tucking money away.
Hi I only have £120 in my nest pension can you or anyone tell me what procedure I go through to take this out in one go I'd like to just transfer it into my bank account if possible
Great video. I change jobs a lot and move countries a lot. I have recently decided to direct debit a small amount each month into my nest account to atleast add something to it whilst not working in the uk. Is this worth doing? Would it be better just investing that money like I do with Vanguard etc?
I worked in the UK for a year in 2015 and I have a nest pension scheme with some money in it. Can I take the money out since I am no longer working in the UK?
maybe someone can help. I am going to start working for an umbrella and they offer workplace pension (with nest) and also salary sacrifice. Is it worth putting more money in the workplace pension or on salary sacrifice in a private pension?
Usually you won’t be able to salary sacrifice into a pension other than the one offered by your employer, JP. One pension is much the same as any other. Of more importance is what’s inside - the underlying funds.
@@MeaningfulMoney Thanks for your answer, apparently as an umbrella employee you can do salary sacrifice and put money in any private pension scheme but also by law the umbrella has to provide a workplace pension. So in reality there are two pensions... if I am not mistaken
Q... Why haven't you talked about the Sharia fund? This fund invests 100% of your pot where the high risk only invests 70%. This fund also has the best overall returns since the date of inception. What ever your thoughts on Sharia this fund has the best record and so worth a mention surely?? This pot is overseen by Sharia scholars to avoid any dealings with alcohol, pornography or pork. I can live with that.
I'm with nest and I want to take money out and put into my bank account I'm 25 and I know this money will be of use to me now as I need a new car so just wondering if that will work??
Is it actually worth it? I have just checked my NEST account and the value fell several dozen pounds within two days! That just seem ridiculous, what is the point of paying in?
Because of this eternal truth: ‘the declines are temporary; the advance is permanent’. Given enough time, you will make money, and if nothing else, the free money from your employer and HMRC makes it worth it. Don’t check it often - that’s a recipe for anxiety. And remember that this is a pension, so you can’t touch it until you late fifties, which may be a way off yet! Good luck…
@@Ella0575 try being 60, with big pension investment plans in place via salary sacrifice only to be suddenly made redundant. Compound this with impact of brexit vote and the sharp reduction thankfully all clawed back. Working again but new job is half previous salary so pension plans knocked for six, solution was to stop the over paying of mortgage as interest rate was low, pay extra into other pension fund not NEST, nest I am paying the 8% via me and the employer. It is hard now the facility is there to stop weekly checks on funds value
Just had a chat with NEST about potential fraud. They don't even have a fraud department. Gave me completely pointless advice. I was sent an envelope by NEST on the name of someone else. I suspect its furlough scheme fraud. I wonder if this person is even in UK at the moment. Probably not. They told me because of Data Protection there is no way to check whether your address is being used fraudulently, but we always assume it isn't... Loool :))))
I had an issue with nest and contacted them and there response was vague. I then contacted my work pension department and then my work contacted them directly and I got a lengthy email from them.
@@MeaningfulMoney I was auto enrolled at 5%/5%. I logged on to the benefits portal and played with the numbers and noticed as my %age went up, the employers went up more. 8%/12% seemed to be the sweet spot.
Thank you, I've changed my fund preference today!!!
For anyone looking at changing their fund preference for growth, I'll just state don't rule out NEST's Sharia fund simply due to its religious conotations. It's is currently nests only 100% equity fund and has, if you look at the latest investment report, both a higher risk of volatility and has experienced higher returns then the 'Higher Risk' fund.
Really nicely presented, very clearly explained, thanks. Great production lighting/sound - What sort of mic is that?
Røde Procaster - it's a beautiful microphone. They do a USB version called the Podcaster. Thank you!
Thank you for talking about NEST. I'm definitely changing to higher risk fund as I'm 52 want more growth.
How did this workout for you?
@@zakwolstenholme7781 Hi Zak. I've changed to the Sharia Fund which is higher risk as I want growth. Intend to ramp up my contributions.
The Sharia fund will invest all of your pot where as the high risk will only invest 70%. This guy didn't even mention it? This fund has the best over all return since the date if inception.
Hey Pete, If the video wasn't as helpful as it was I'd give you a like just for keeping your channel going as long as you have. I have a Nest pension and like you've said never really thought about it until recently. Was thinking of keeping it open while moving the majority to VG but like you say, partial transfers may not be an option. I will find out. If not, a higher risk option maybe the way to go. Thanks for sharing. You have a sub.
Cheers Jay - good to have you on board!
Hello, I'm 26 and I'm considering moving to a higher risk pension via NEST, do you think in the current climate that would be wise? I was going to wait a year and see what the general economical landscape looks like and perhaps do it then.
Tom, if you're 26, it's going to be 30 years at least until you take the money back out, so don't worry about the economy in the very short term. Read The Simple Path To Wealth by JL Collins, or my own Meaningful Money Handbook (petesbook.com) and learn about how investing works - I promise it'll serve you very well...
Can you please make another video and explain the other better options from other pensions? Regards Flam
I have to be careful doing that. As a regulated adviser I have to stay the right side of giving advice...It a a pain, but it’s important.
I am having trouble getting my money out of Nest, I have filled in forms and sent them back, via emal, and when I last spoke to them they said they would send more forms, with our present postal system in the UK, I may not get the forms; feels like ever decreasing circles....
Did you get it sorted?
Great video. I am with nest I am 31 but planning as much as possible now. I have a stocks and shares ISA that I am building up month on month. The NEST pot will be a bonus, I should have enough in my ISA without the need for NEST if all goes to plan haha. I plan on using up the NEST to allow my main pot in the ISA to compound for a few more years.
One question I have though. Lets says I'm 57 and can now start to withdraw. I know you can take a 25% tax-free lump sum that's all good.
But let's say I retire and take out the 25%, starting from the next tax year can I then take out £12,500 (or whatever the personal allowance may be by then) tax-free a year assuming I have no other income?
Hope that makes sense haha,
EDIT** I think I am correct in my assumptions I just found an article on it. Can I then ask this......
My plan is £12,500 a year withdraw from NEST then say another £10,00 from my ISA. This would be £22,500 all tax-free correct? **
Thanks,
Sean
Yes, exactly. Once you’ve taken tax-free cash then anything else you take from a pension is taxable. But if you have no other income, then the first £12,500 would fall within the personal allowance and hence be tax-free. Note the Personal Allowance changes most years. Anything you take out of an ISA is tax-free, always.
@@MeaningfulMoney Thanks mate. Always nice to get confirmation! I'll be listening to the podcast for sure
@@TheSoundlessSound0 Sean here. Yeah that would 100% but that's not until 67 for me anyway. Either way you would just reduce pension withdrawal by £800 a month if you didn't want to pay any tax. Or if you want more money to spend then you would just pay the tax at that point. Im hoping I will be able to retire at about 50 all being well. So I would have a 17 year run tax free. If your really wanted to not pay any tax and you had enough in the ISA for living expenses then you could take out the £12500 from the pension and put it into the ISA for 10 straight years then just withdraw difference between state pension and personal allowance, around £450 in this case but I don't think that would really make much sense
I've just been rolled in to nest with my employer this month. I have no extend understanding of the Nest only that they help you save for retirement
It is a workplace pension provider. Your employer's workplace pension scheme sets you up with such a provider (in this case, Nest, but other providers are available; your employer chooses which one they wish to use), and then you and your employer pay an amount into this scheme every time you receive a payslip.
@@TheSoundlessSound0 There's an auto opt-in threshold set by the government (currently £10,000/year gross income). Your employer is required to notify you in writing that this will be happening, with 1 month notice once you reach the threshold, or I believe 3 months if you are a new employee that is already over the threshold. You are permitted to opt-in early or opt-out at any time.
@@TheSoundlessSound0 If you are opted in, you'll see the deductions on your payslips as "Pension", "AVC", "voluntary contributions", or similar. You'll also see your employer's pension contributions in the bottom half, where the employer's NI contributions are also stated.
Can I suggest an investment platform (online and phone)
charges/fees focused comparison video, showing a league table and table of
shame, so that viewers can avoid or minimise having their gains eroded by charges
and fees. And in this difficult time, losses further eroded by fees.
I'm 23 years old. And my employer started with Nest recently,I wanted to turn it off and have my money safe with me but now I saw your video,so what do I advise,,shall o leave it
to leave the scheme is to give up free money from HMRC and from your employer. Your future self will be glad you stayed in, believe me...
im 48 and have about 11000 in my nest scheme which me and my employer pay into, i also have about 18000 in an old reassure pension, nest annual managment charge is less that reassure should i transfer in and join the 2 together
What if I already took retirement at 55 and took my nhs pension. Am I automatically enrolled in Nest?
Are you working elsewhere, Gerry? If so, then if you qualify, then you will be automatically enrolled in a pension scheme, but it might not be the NEST version. Check with your employer's HR or pension department
The NEST Pension initial charges are very high. It is expensive
Offset longterm by the 0.3% management fee, much lower than many other options out there. Yes you'll pay approx 2% on the initial charge..
@@BaileyMxX Shocking reply after 1 yr,.so called lower, you are charging up front and skimmed of the potential investment gains.
@@ab16426 totally disagree... Now compare it to many pension schemes where the annual charge is 0.6% plus etc (plus they also have initial charges and see how quickly that suddenly overtakes the total fee you've paid via nest... There's very few schemes that offer lower fees than nests 0.3% and over a multi decade timeframe it more than makes up for the initial higher first year fee
OK have the seemingly smaller amount skimmed off of you for the next 30 or 40 years and then realise how much you've lost out on..
If your employer offers the NEST pension and only the NEST pension opting out means losing out on lots of "free" money (the employer contribution) over your working life.
If you can afford the employee contribution you'd be foolish to opt out. 2 per cent of the contribution is not worth getting hung up on - your future self will thank you for tucking money away.
Hi I only have £120 in my nest pension can you or anyone tell me what procedure I go through to take this out in one go I'd like to just transfer it into my bank account if possible
Please can you help me to stop my nest pension it taking a lot of money of me
Great video. I change jobs a lot and move countries a lot. I have recently decided to direct debit a small amount each month into my nest account to atleast add something to it whilst not working in the uk. Is this worth doing? Would it be better just investing that money like I do with Vanguard etc?
If you’re officially non-res in the UK they wouldn’t let you pay in to your NEST pension.
I worked in the UK for a year in 2015 and I have a nest pension scheme with some money in it. Can I take the money out since I am no longer working in the UK?
Unlikely. You may be able to transfer to a similar scheme in your own country perhaps.
can you transfer it to vanguard?
Yes, no problem.
maybe someone can help. I am going to start working for an umbrella and they offer workplace pension (with nest) and also salary sacrifice. Is it worth putting more money in the workplace pension or on salary sacrifice in a private pension?
Usually you won’t be able to salary sacrifice into a pension other than the one offered by your employer, JP. One pension is much the same as any other. Of more importance is what’s inside - the underlying funds.
@@MeaningfulMoney Thanks for your answer, apparently as an umbrella employee you can do salary sacrifice and put money in any private pension scheme but also by law the umbrella has to provide a workplace pension. So in reality there are two pensions... if I am not mistaken
Q... Why haven't you talked about the Sharia fund? This fund invests 100% of your pot where the high risk only invests 70%. This fund also has the best overall returns since the date of inception. What ever your thoughts on Sharia this fund has the best record and so worth a mention surely?? This pot is overseen by Sharia scholars to avoid any dealings with alcohol, pornography or pork. I can live with that.
Sorry but I don't recommend their service, I stopped my nest contribution due to poor refund policy.
I'm with nest and I want to take money out and put into my bank account I'm 25 and I know this money will be of use to me now as I need a new car so just wondering if that will work??
Nope. Can’t do it. It’s a pension, so that money is locked in until at least age 58
Ah right thank you pensions is pretty new to me and thank you for getting back to me promptly 👌
Is it actually worth it? I have just checked my NEST account and the value fell several dozen pounds within two days! That just seem ridiculous, what is the point of paying in?
Because of this eternal truth: ‘the declines are temporary; the advance is permanent’.
Given enough time, you will make money, and if nothing else, the free money from your employer and HMRC makes it worth it. Don’t check it often - that’s a recipe for anxiety. And remember that this is a pension, so you can’t touch it until you late fifties, which may be a way off yet! Good luck…
@@MeaningfulMoney Thank you, it is just very stresful and hard not to check an account.
@@Ella0575 try being 60, with big pension investment plans in place via salary sacrifice only to be suddenly made redundant. Compound this with impact of brexit vote and the sharp reduction thankfully all clawed back. Working again but new job is half previous salary so pension plans knocked for six, solution was to stop the over paying of mortgage as interest rate was low, pay extra into other pension fund not NEST, nest I am paying the 8% via me and the employer.
It is hard now the facility is there to stop weekly checks on funds value
Just had a chat with NEST about potential fraud. They don't even have a fraud department. Gave me completely pointless advice. I was sent an envelope by NEST on the name of someone else. I suspect its furlough scheme fraud. I wonder if this person is even in UK at the moment. Probably not.
They told me because of Data Protection there is no way to check whether your address is being used fraudulently, but we always assume it isn't... Loool :))))
I had an issue with nest and contacted them and there response was vague. I then contacted my work pension department and then my work contacted them directly and I got a lengthy email from them.
whole thing sounds like some sort of scam, no wonder wages have stagnated with more paperwork and expenses for employers.
I have two ID nest how can I fix that ??? Can I mix them together?
My employer pays 12% and I pay 8%.
Nice!
@@MeaningfulMoney I was auto enrolled at 5%/5%. I logged on to the benefits portal and played with the numbers and noticed as my %age went up, the employers went up more. 8%/12% seemed to be the sweet spot.
Is disgusting nest I do otherwise you don’t trust them
Nest is badly run , trying to claim your pension is a nightmare , they haven't got a clue . If you have a choice avoid Nest !