NEST Schemes

Did you know that your employer has to offer you a pension by law. Under auto-enrolment, which was introduced in 2012, employers have to enrol employees into a workplace pension.

Your employer will automatically enrol you into a workplace pension and start contributing as long as the below criteria is met:

• Are aged between 22 and State Pension age
• Earn at least £10,000
• Work in the UK

Of course, this would only be successful if every employer had access to a suitable scheme – and that’s why the government funded the creation of the NEST workplace pension. The question is, if you get the opportunity to join, is this a NEST you should settle into or flock away from?

Let’s answer some of the questions you may have:

Can I open a NEST pension myself?

No, as it’s a workplace scheme, only employers and the self-employed can open one.

If I don’t join now, can I do so later?

You can request to re-join any time you like. Auto-enrolment occurs in 3 yearly cycles so your employer would enrol you into a workplace pension during your employment and you have the option to opt out at any time.

If I join a NEST pension can I change my mind later?

Yes, you can opt out of the NEST pension when you like. As with any money purchase scheme, you can’t access your savings until you are 55, but you can transfer your money to another pension scheme at any time after you have finished contributing.

Is it better than other pensions?

As with all workplace pensions, NEST offers the highly valuable benefit of extra contributions (free money!) from your employer – which shouldn’t be taken lightly. But like everything, from the house you live in to the mobile phone in your pocket, the right pension for you depends on your wants and needs and your circumstances.

Your circumstances include things like:

• How close you are to retirement
• How much is contributed to your pension each year
• What it’s costing you
• If you have other pensions and what they offer
• Your future goals