A Guide to Nest Pension Transfers
There are a number of pros and cons when considering transferring your pension from NEST (National Employment Savings Trust). Fortunately, the pension advisors are experts in transferring pensions and can give you the right advice for the best financial outcome.
In this article we’ll attempt to answer the most common questions, such as:
- Can I transfer my pension to another provider?
- What other pension schemes could I transfer to?
- Do NEST pensions allow transfers overseas?
- How do I transfer my pension to another provider?
- Can I transfer my pension into NEST?
- Should I transfer my pension?
- Are there pension transfer fees?
- Speak to an independent pensions advisor
NEST is just one of several providers of workplace (auto-enrolment) pensions. If your workplace pension is not a NEST scheme, check out our guide to workplace pension transfers.
You can find out more information about pension transfers in our main page.
Can I transfer from a NEST pension?
Yes, you can transfer money out of your NEST at any time, provided it is to another registered pension scheme.
It’s important to note that you must have stopped making contributions into your NEST retirement pot, before you can transfer your money to other pension schemes.
What other pension schemes could I transfer to?
As long as the pension scheme is recognised by HMRC, there are many pension schemes you can transfer a NEST pension into. These include –
- Executive pension plan
- Group personal pension
- Master trust pension (workplace pensions)
- SIPP (Self Invested Personal Pension)
- SSAS (Small Self Administered Schemes)
- Stakeholder pension
Can I transfer into an overseas scheme?
Yes, you can transfer the money from your NEST pot into an overseas pension scheme, as long as it’s a Qualifying Recognised Overseas Pension Scheme (QROPS).
Be aware that there may be an overseas transfer charge to pay if you’re transferring your money out to an overseas pension scheme.
How do I transfer to another provider?
Firstly, you can only transfer out of NEST once you have stopped contributing. And you can only transfer to a pension scheme recognised by HMRC.
Apart from that, all you have to do is notify your pension provider that you wish to transfer your pension. It can take up to four weeks and they may apply early exit fees.
To make sure that the transition is smooth, talk to one of the advisors we work with. They’re experts when it comes to transferring pensions and will help ensure you get the best advice and so that you can plan for the right level of income when it is time for you to retire.
Can I transfer my pension into Nest
Yes, you can transfer other pensions into NEST at any time, but only certain types of pensions can be transferred. It must be from a UK based pension scheme that is registered with HMRC. Allowable schemes include:
- A defined contribution scheme – This is a scheme whereby you make regular contributions to build up a pot for your retirement over a period of time. The final amount depends on the money you have contributed, tax relief from HMRC and any growth in investments.
- A pension credit transfer – This could be part of an ex-spouse or civil partners pension that has been awarded to you by a court order after a divorce or end of a civil partnership.
- An early leaver cash transfer – If you’ve been paying into a workplace pension scheme for more than three months, but less than three years, you should be able to transfer the balance to NEST, as long as the value is more that £50.
Should I transfer my pension?
There are a number of things to consider before you transfer your pension into NEST.
The first is if your current pension provider offers certain guarantees or protections, these will be lost when you transfer your funds into NEST.
The value of a NEST retirement won’t necessarily increase and could, depending on market factors and the economy, decrease in value.
Can I transfer my NHS pension?
It’s possible, but unless the pot is very low, reputable financial advisors would advise against it.
However, if you are no longer employed by the National Health Serice (NHS), or the scheme, you may be able to transfer your pension rights to a new pension provider, such as NEST. Remember, you can only transfer to a pension scheme or arrangement that is registered with HMRC and one that is able to accept a transfer payment from the NHS Pension Scheme.
In either case, we would highly recommend you speak to one of the expert advisors we work with first for more guidance. You can learn more in our dedicated article NHS Pension Transfers article.
Are there pension transfer fees?
Your existing pension provider may charge a penalty if you go ahead with the transfer to NEST. This would have the effect of reducing the amount that’s transferred to your NEST pot.
This charge may take the form of an exit penalty or a fund charge called a market value adjustment or market value reduction. Either way, we recommend that you ask your current pension provider what, if any, charges might apply.
Talk to a pension transfers expert today
Whether you want to know if you can transfer a personal pension into NEST, or if you can you transfer your pension from NEST, then you need the right advice.
The advisers we work with are experts when it comes to transferring pensions and will work hard to ensure you get the right advice for the best financial outcome so that you can plan for your desired income when you retire.
Call us today on 0808 189 0463 or make an enquiry to arrange a no-obligation consultation.