# Nest Pension Scheme



## ardandy (Aug 18, 2006)

Is this worth doing?

Our company is just going to follow government guidelines and use this. 

Worth doing over other options?


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## Shiny (Apr 23, 2007)

We've set it up. Great for employees if you ask me. 

Can't remember the exact figures as I have it all in the office, but the initial roll out works out that if you put in a tenner, your company matches it. But as you get tax relief, it works out that the tenner becomes £8 for which you get £20 stuck in an investment pot. 

That's a basic summary, I can post up some proper figures tomorrow if you wish.


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## Tricky Red (Mar 3, 2007)

We're doing it at work, and it is matched by the employer so a bit of a no-brainer for me despite having my own pension anyway.


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## ardandy (Aug 18, 2006)

So worth doing it seems.


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## Dougnorwich (Jun 27, 2014)

Deffo better than no pension to be honest it performs as well as a managed sip long term


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## ardandy (Aug 18, 2006)

Well if the pensions as good as the thermostats! Its a winner.


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## Andy from Sandy (May 6, 2011)

The advise I have always been given that if there is a company pension scheme then get on it as soon as possible.


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## baxlin (Oct 8, 2007)

As an employer, I've been told that NEST is not the best option available to employers for Auto Enrolment, (as far as potential value for employees goes) but it seems to be one of the easiest to set up and operate. And is certainly better than nothing.


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## Shiny (Apr 23, 2007)

Andy, there are different options available (all depends which your employer chooses i think) but based on using "qualifying earnings" it goes something like this, assuming a £17,824 annual salary and starting in 2015 using the minimum contributions.

Currently you have to earn at least £5824 to qualify (£486 per month), so on £17,824k your qualifying earnings are £17,824 - £12,000, (£1k per month).

Minimum contribution levels are 1% you/1% employer, then 3% you/2% employer and finally 5% you/3% employer. You also get 20% tax relief on your contribution.

If your start date is 2015, then minimum contributions on your £1k per month salary will be:

2015
1% employer = £10.00
0.8% you = £8.00
0.2 tax relief (paid by employer) = £2.00
*Total pension contribtion = £20.00*

2017
2% employer = £20.00
2.4% you = £24.00
0.6 tax relief (paid by employer) = £6.00
*Total pension contribtion = £50.00*

2018 onwards
3% employer = £30.00
4% you = £40.00
1 tax relief (paid by employer) = £10.00
*Total pension contribtion = £80.00*

Basically, for each £1 you pay into your pension withing the minimum limits you double your investment.

It is probably a crude way of explaining it but i'm not a financial adviser, i'm pretty confident it is correct, it took me a while to get my head round it all and set it up, but that is my understanding of it.

Proper advice from a financial adviser is the best bet, but hopefully this helps explain it.


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