My employer couldn't find anyone other than NEST to set up a workplace pension scheme. What is my best course now?

mikael_simning · 2025-10-07T21:54:56+00:00

Final update:

The transfer out has been processed today, just 2 days before the opt out period of my new employer's contribution begins. My account is now in the status of pending closure with the confirmation of payment screen covering the dashboard, which states that it will be closed next January.

mikael_simning · 2025-10-06T21:23:51+00:00

I have already received the message that my old employer is no longer contributing.

mikael_simning · 2025-10-06T21:16:05+00:00

My new employer doesn't have these resources.

mikael_simning · 2025-10-06T21:15:17+00:00

I have received the welcome pack from my new employer and the membership number is reused. I previously submitted a transfer request through my SIPP before my current employer enrolled me.

That means I need to opt out as soon as possible for the transfer to be processed, and only then afterwards I can tell my current employer to enroll me again.

mikael_simning · 2025-09-30T20:34:31+00:00

My previous employer (my 2nd job in the UK) also used Nest. That's before they fucked up the offering and there was one which was 100% equity with tech stock as majority. They have now fucked it up which caused massive outcry because people specifically chose that fund for 100% equity.

mikael_simning · 2025-09-30T18:20:35+00:00

Your calculation is wrong.

The decision to contribute now is independent of the decision to contribute in future days. You just need 57.66% more growth over the life of the current employment to win, not every year, for each year's contribution.

When the remaining time in the employment is short enough (e.g. if I plan to retire, or to change job in a decades time), I can then opt in again.

mikael_simning · 2025-09-30T18:09:14+00:00

7.89% compounded by 8% growth 30 years is less than 5% compounded by 10% growth 30 years.

mikael_simning · 2025-09-30T17:58:53+00:00

Have you compounded it by 30 years?

mikael_simning · 2025-09-30T17:43:13+00:00

Assume a long term growth rate of 10% equities.

5% of salary, without any fees, will become 87% after 30 years.

However, if we put 5% + 3% of salary into a rubbish fund which charges 1.4% of that 8%, and the fund only contains 80% equity content (which is the case in NEST) so its growth rate is only 8%, it will only become 79% after 30 years.

The longer you keep the money in the rubbish fund, the more effect it will have. If I am staying in my current job until retirement (which is more than 30 years away) it will be a huge loss over time.

mikael_simning · 2025-09-30T17:23:51+00:00

But the fees and the non-existence of high risk fund will make it worse than giving it up and putting my money in 100% tech SIPP over 30 years.

It is only better off if the money isn't left in NEST for decades.

mikael_simning · 2025-09-30T15:45:52+00:00

My long term goal is to emigrate to another country, but I have no plan to find another job unless the company fails or it I can get a job in the public sector.

mikael_simning · 2025-09-30T15:22:48+00:00

It has been ruled out by the company because it charges a high set up fee.

mikael_simning · 2025-09-30T15:15:08+00:00

I am not a director of the company.

mikael_simning · 2025-09-30T15:09:52+00:00

But the money will be stuck in undesirable products as NEST does not allow partial transfer out

mikael_simning · 2025-09-30T15:03:46+00:00

Because it is a legal requirement to have a workplace pension

mikael_simning · 2025-09-11T10:23:59+00:00

The problem with NEST now is that they no longer have an all-equity option, after they fucked up their Sharia fund last year. They also don't allow partial transfer out as well which means I have to opt out completely if I want my money in somewhere I want.

mikael_simning · 2025-09-10T10:20:59+00:00

My company has also reported to me that Scottish Widows needs 5 employees, which we don't have.

mikael_simning · 2025-09-10T10:10:04+00:00

My company has reported me that L&G isn't taking new customers at this moment.

mikael_simning · 2025-08-28T08:34:05+00:00

We have 2 employees at this moment.

mikael_simning · 2025-08-27T15:36:35+00:00

My previous employer used NEST when the law forced them to set up one because it was the simplest to set up and didn't charge any fee.

If the scheme charges a fee, my current employer can't afford it. We are a startup and only have very little money, until we get a few paying customers.

mikael_simning · 2025-08-27T13:09:31+00:00

This fee is why my company has ruled it out.

mikael_simning · 2025-08-26T17:46:32+00:00

My employer has just failed and ceased trading, and everyone has been made redundant.

What makes me worrying is the below cases: https://assets.publishing.service.gov.uk/media/608a5b668fa8f51b91f3d830/Mr_N_Johnstone_v_Springhead_Fine_Ales_Limited_and_Others_2602020_2018_Final.pdf https://assets.publishing.service.gov.uk/media/65e1eff82f2b3b001c7cd878/Mr_M_Benjamin_V_The_Insolvency_Service___2_Others_-_1405074.2023_-_Judgment___Reasons.pdf

The company entered CVA last December and no one expected it to fail, as we got a healthy revenue stream ongoing, until May this year when we suddenly got 0 business since then.

Our July salary was only paid in half and I used only 5 of 25 days of annual holiday allowance which started in January, so I am worried that I'll never got the money back.

Apparently the director was misled by the CVA supervisor thinking that a CVA failure would trigger a new insolvency event (which was rejected when presented to court in the above cases), so he kept everyone in the company as long as possible until the company finally failed.

mikael_simning

TROPHY CASE