Nest Pension Charges Expensive
Published / Last Updated on 16/03/2010
Nest Pension Charges Expensive
by Ashley Clark, Director
The Government has announced that in addition to the 0.3% annual management charge, Nests will also levy a 2% charge based on the amount of contributions paid in.
Whilst the long term aim is for there to be only a 0.3% annual management charge, the Government said 2% will remain in place to cover the charges for establishing Nest. Loans for these costs will be made by the Government and they are refusing to say how much the loan will be or when the 2% will be reduced.
From our point of view, this pension scheme is a total waste of time, effort and money. Consumers may get a much better deal from a Stakeholder pension plan by paying a fee to their adviser to achieve management charges in the order of 0.5% dropping to 0.4% when the fund grows.
The all boils down to how long the 2% is in place.
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