The Government should step in here and insist that they offer a 100% equity fund. All those millions of people deserve to have all the options as to how their money is invested.
But who will then deal with the fallout if the stock market crashes shortly after? I bet a lot of the same people moaning about wanting 100% equities will be the same people queuing up to try and sue them or the government for that. They should offer a 100% fund, but it’s not just a Nest problem. None of my workplace pensions have been through Nest and not one of them offered a global 100% equities fund. IMO we need to move away from workplaces dictating the pension provider. Sure they should have a default, but it should be that the employee and choose their own provider that the workplace then pays in to. That way you get the choice to move it around as you see fit, but you’re solely responsible for it. Alternatively they should make it mandatory that workplace schemes allow partial transfers - at no cost.
I'm not denying that Nest deserve some flack here because they definitely do. But its incredibly easy for pension providers like them to do what they do when 1 in 4 UK adults have never even logged in to check their pension, and about 9 in 10 are still invested into the default fund. The UK seriously needs to wake up when it comes to finances
100%, the public are far too indifferent to THE best asset for building wealth. If people were as interested in pensions as they were in homes, for building wealth, NEST would not be getting away with this.
@@rorymetcalfe552 If you're with Nest through your employer, then you probably don't have a choice, and Nest is better than nothing if you're employer is also making contributions. I don't like my employer's pension provider (Creative/Cushon) because there are nothing but bad reviews online about them, but as my employer is also topping up contributions, it's free money, so I'm sticking with it. But my SIPP is with HL.
I’m a limited company director with around 15 employees, would love a video on what to look for when choosing a pension provider and some examples. Thanks Damo!
high fees, limited funds, lack of transparency on holdings, cant do partial transfer unless if i close my account (so im stuck paying high fees)!! avoid
Fantastic interview - great questions and thought he answered well. Also THANK YOU for not forcing me to skip an advert every 5 minutes. Some videos on this platform are now unwatchable. Thoroughly enjoyed this.
The ONLY reason I am with Nest is because of my employer contributions. Being denied 100% equity exposure is criminal, i don't retire for another 41 years?!
Not watched yet but fair play i guess for nest agreeing to do this. They must know Damo is not their biggest fan and might not be the most pleasant interview for them
@@DamienTalksMoney Nest know that the vast majority of their captive audience take little interest in their pension and how it is invested or how much they are being fleeced by Nest so they won't be watching this excellent interview and will remain ignorant. That suits Nest very well indeed.
Once again thank you damo. Feeling ok with my nest pension but have always been hands on in which I think is the key.Out of the 3 pension funds I hold nest is by far the most user friendly platform.
A lot of commenters here are missing several points: 1. The vast majority of NEST members aren't engaged - as mentioned 98pc plus are in the default fund. So adding more funds will be on a long tail i.e. with few members. 2. NEST is the fall-back provider. It is used mainly by employers who are not particularly engaged, many of whom are very small. Anyone commenting on this video is by their nature financially engaged. So you're part of the 2pc not the 98pc...
Also - he really wasn't kidding about Aussie Super in the UK. Targetting £250bn for 2035... www.gov.uk/government/news/australian-funds-back-british-economy-with-major-moves-to-the-uk
But isn't that worse? People who aren't engaging are assuming their pension provider is doing their best for them. Instead their grow if being sniffled and they're being charged 1.8% on every penny that goes in on top of the 0.3% fee a year. They shouldn't be penalised for an employers choice
Imagine taking 1.8% of 12 million+ peoples pension in the UK, then 0.3% ongoing fee, how they managed to swindle that, I will never know. On top of that, you're unable to choose an equity fund that will mitigate the hefty fees. At least Dick Turpin wore a mask. Aside from that, cracking podcast and guests lads, keep up the good work.
Really great interview. He’s obviously a proficient communicator but I’ve heard this guarded waffle too many times wrapped up in a cosy “ we’re on your side” type of chat. Some very interesting issues raised about the general publics level of knowledge and the difficulties financial companies have in meaningful communication and feedback.
Well done for bringing him in, and let's hope they soon open up to a broader area of stocks to those who know what they specifically want to invest in (eg VHVG, S&P etc)
@@ManyMannyMan in fairness the AUM fee of 0.3% is reasonable. Way below the maximum allowed of 0.75% for employer schemes Buying the Sharia fund from HSBC is 0.27% if you were to buy it and then you'd have a platform fee on top to whomever you use as a broker. Also very competitive on their other mixed asset portfolios that youd struggle to build elsewhere for 0.3% when you factor in BOTH management and platform fees The elephant in the room is the 1.8% charge on the way in, they seem to imply this is going to paying back the loan (tax payers getting whacked twice)
My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting £15k or £20k With the current market movement at the end of the year they are making millions.
Yes I agree with you on that. I was once a holder with about 3BTC, 7ETH and $8000 worth of lite coin but now after investing have about 17BTC and 21 ETH
Investment is currently the most lucrative business in the world. Both real estate, Stock, and Cryptocurrencies are positively changing people's lives.
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Since this has been out, my nest pension is now in high risk. Thanks for making a great podcast with top guests I’ve changed my other pensions aswell to plans historically doing 50% better. You’ve made a long term listener here
Damo, I thought you kept your cool here very well, despite this man’s dithering, frustrating, side-stepping answers. I’m not going to call him a liar, but let’s just say he was ‘extremely economical with truth’. He spoke for 90 minutes and didn’t say a thing. “70/30 is pretty much the same as 100% equities over 15 years” Firstly, No. No, it really isn’t and second of all, most people will be invested for significantly longer than 15 years. D: “How hard is it to just implement a 100% equities in your line-up” “Errrrrrhhhhh - we manage lots of people’s money on a daily basis.” Great! But that’s not the question that was asked… I agree with the comment from another user that Nest is a simply a quasi-governmental department, set up to invest pension contributions back into UK government via bonds and gilts, whilst taking a fat slice in the process - to the tune of hundreds of millions of pounds. 👎
Splendid work in this interview Damo! Yes fair play in that he turned up to represent Nest in what could have been a hiding. But you kept calm, asked all the right questions, and at times seem to know more about their product than he does 💪 Rather than COO, this guy should apply for a job in government - well skilled at not really getting into the nitty-gritty with his answers. Sadly, this just reinforced what a number of us feel about Nest and it’s not positive. They absolutely operate for the vast majority who are not engaged - that’s why there’s so much BS answers for the challenging questions - they don’t actually have answers, and don’t care too. But, glass half full - there’s an opportunity for them to change and improve - but I’d suggest they don’t have much time. Although currently so many people don’t pay enough attention to their pensions, that’s likely to change as people become more educated (thanks to folks like you Damo) and the future of retirement planning is going to get more attention as people start to realise they can’t rely on the state. Feels like a government backed state investment ponzi scheme ATM!
Seems to me like Nest likely make more money for themselves when their investors are in a 70/30% equities to bond portfolio against a 100% equities portfolio. Don't think any of their reasons for not having 100% equities really stack up e.g. we are too busy, referencing some abstract study in Australia.
Very good interview, Damien. Well done to both of you for asking the difficult questions! At the end, I’m left with the feeling that for individual people, it’s best to educate yourself and do your own SIPP (and shoulder the risk). Because the risk of leaving it to Nest seems to be much higher over the long run..
Poor customer service, poor returns and sky high charges! Along with a over populated board of directors on obscene salaries. Moved my money at the first opportunity.
Just want to point out that while not having a 100% equities option is pretty shocking, the worst part is probably that if you WERE one of the few investing in the Shariah fund because of religious beliefs you actually don't have a say in it at all. Given that Nest is a default provider set up by the government, that's dreadful.
Well done Damien for keeping a level head, balancing your opinion and giving the guest time to explain. Looking at what Nest offer, if it was my DC provider I would exit and transfer it into a SIPP just for the fees and the lack of options I prefer.
Yes, it puzzles me that they got soooo much money from the Gov (the taxpayer) to set it up and when we make contributions they keep a percentage of the contributions going in + the normal fees. Considering the huge output by taxpayers to create the scheme, it feels like we're paying twice. I wonder how much the other pension providers spent to create their own.
Really good interview, your best yet and I thought the guest spoke well giving sound reasons for their decisions. I think the answer to most of the problems highlighted in the comments is for them to allow partial transfers. This way, that 2% who are engaged can make their own decisions. As Nest have to account for themselves to parliament then we need to ensure our elected representatives are clued up enough to protect the 98%.
ANother cracking video guys. could you drop a video for us self employed people or sole director of limited companies? on this topic, as an employer who currently uses nest but is keen to help my staff, what's the best alternative option(s) to Nest?
Really interesting this one. I feel that Paul gave a pretty good account of himself and Nest on this which was helped by your balanced approach. You let him talk to explain his points but rightly pushed him on certain points. Could almost feel you both biting your tongue on some points. Helped the conversation overall. It was super interesting albeit disheartening hearing just how few are engaged with their pension. But then again, I was like this a few years ago before finding this channel.
I wish they could negotiate lower fees. The largest work based pension scheme in the uk and some of the highest fees. Personally this is just set up as a full on money grab, charges when i pay in and then, a monthly fee on top just a joke, stuck with nest till i leave the company i am currently with, i have just done nine years and the pot size is really poor. Set up my own stock and shares isa and in one year i have managed to grow a savings pot equal in value to my nest scheme.
Disgusting to be honest the guy is literally squirming, he knows Nest are excessively profiteering from hard working people who are not financially savvy, the very people Nest want. Compare default fund returns of 7.3%, to something like a HSBC global equity index fund 29.4% YTD return with a 0.27% fee. Don’t let these greedy companies take your retirement money.
Why do you compare the default fund with global equity tracker rather than another default fund? If you compare like with like you may learn something different
It's good you have him on and bring up all the relevant questions, but his waffling is hard to listen to. He says they have been thinking about 100% equity for 10 years? I'd love to see a day in the life of NEST
only with nest because not allowed to choose. trying to access MY money and it is an absolute nightmare. will be easier to tfer to another provider and withdraw through them.
Employers chose Nest because the cost was all one the Employee 1.8% on all contributions is vary expensive. The management fees of 0.3% aren't too bad.
I got two friends that didnt wish to proceed with their job applications once they found out the company uses NEST as a provider. I didnt think too much of it in the past but now I cant imagine that I would accept it either, if I gotta search for another job. Its just too much damage to the overall packet..
@JimboJimbo-i4i .......tell me you're joking? Obviously I wasn't referring to a situation where you have a single job offer from an unemployed position.
Great conversation and thank you so much for everyone involved. The auto-enrollment is a fantastic way to help people in taking more care of their future. My thoughts/questions after listening: -Considering the big output by taxpayers to create the scheme +1.8% deduction in our contributions + the expected management fees, it feels like we're paying twice. Def not cheap and cheerfull. -Just because some members want to the option of keeping a 100% equity fund it does not mean that Nest needs to create 100's of new funds, please don't get confused. Inclusivity does not mean 1 fund per person. Nest is being paid very well so, please be more creative and innovative. Making assumptions on the back of people "not logging in"? That is a knowledge/education issue not a strict pension issue. At the end, if this is the line of thought governing the decisions and they are causing people to want to leave the scheme, why did the public have to pay for it? Are we just plain cash-cows? -Regarding this Shariah/100% equity: if it was possible to add the 70/30 new fund, it couldn't be that difficult to keep what was, too. The word Shariah bothers? take it out and call it 100% equity. Too risky? Once the member feels it no longer serves due to age or whatever, one option is to change the strategy/fund. That's an advertised possibility used by some and a fundamental option in a non-mandated service. - The assumptions and the lines of thinking of "allowing people to", "charging for changing funds"... what is this? Allowing? We're not being given anything for free and feels short of telling us what to do with our money. If anything you've have been given a viable business, funded by public money but at the same time you're not a gov body🙄 The tax-payers paid/ pays, top ££ to have this service, so no need for the nanny-ing in what they think is best. Transparent education is welcome though. -All the paying seems to fall solely on the employee, no wonder it is so popular with the employer. No wonder the fantastic growth. -I wonder how much the other pension providers spent/and currently spend to create/mantain their own scheme. -Finally, 31million in staff costs for around 30 million members. Are we ok?
I moved out of nest as soon as I left my contract. Their fees were so incredibly high, with terrible fund options and having a fund for 1 religion which I found wrong in today's world. I told them my views. They need to be run better.
I appreciate the COO of nest coming on here to explain some things and I tried to listen with an open mind, though I don't agree with the reasoning for the most part it's nice to know - particularly the insights on introducing a 100% equity fund. I currently have a nest pension through my workplace, but I will be looking to transfer out to my SIPP when I change jobs.
Working in tech I move jobs every 2/3 years and as soon as I leave I transfer them into my SIPP. I don't why know why anybody would leave their money to people like Nest.
One of the big issues that needs looking at is getting people engaged. I work in in a company and out of 15 employees only 1 was engaged with their NEST pension e.g understanding what a pension is, knowing about the different funds etc etc There needs to be workplace info re pensions , government adverts etc ….most employees have no clue & just think it’s something taken out of their wages each month Worse pension provider , I would partial transfer out but they don’t allow it, the negatives go on
Love that they act like they welcome feedback and will listen to the complaints about the sharia changes... when i emailed them about it, they said that i could email back, but they wouldn't be changing their mind about it. Basically "stuff off, we know what we're doing, you don't". Condescending bunch!
Nice one Damien, you put him under some pressure at the end! I think they are raking it in, my partner is self employed and has just taken on staff and 1.8% on the way in is a bit unfair IMO, BUT anything is better than nothing. I have a pension that i pay 39% of my wages into and luckily my fees are under 0.22% overall via my works private pension.
At about 43mins, Mr Todd states that, they had tried to survey people in respect to changes to the Sharia fund. As someone who is deeply in tune with my NEST pension - which is invested in the Sharia fund, I can assure you no such survey or questions were made by NEST. None whatsoever.
@ Hi. The point was made at about 43 minutes in if you want to review. Not sure what benefit a screenshot will do sorry. Also if I do send a screenshot, where do I send it?
Same here. I will be moving out soon. But when around 90% of the members are in the default, I wonder if they would listen to the complaints. Anyway, I'm responsible for my own financial situation and will act on the best for my future. I wish people would pay more attention to their finances and see that there are ways to improve and they have more power than they think (actually all the power, when together)
Sam for me too, log into nest weekly, have been part of the Sharia for years and the first notification was saying the fund was changing, no feedback requests at all
Your guest did not go to university and it shows. He's trying to convince us that a 70% equity / 30% bond fund is almost the same as a 100% equity fund. This is not the case! Someone in their early 20s needs to be in a 100% equity fund. It's almost criminal that the 13 million members of Nest are not offered this option!
Beside the COO having no university degree, the new CEO of Nest has a degree in geography...and these people are managing the investments for 13 million people???
@@richsmart321Nest manages the investments for 13 million people, that's a gigantic responsibility, I would expect the people in charge to have a degree in an economics or finance related field.
@@richsmart321 Nest manages the investments for 13 million people, that's a gigantic responsibility, I would expect the people in charge to at least have a degree in an economics/finance related field.
Damien, it would be very useful to have a video that discusses the pros and cons of private equity within a pension fund. How has a fund thats say 15% private equity, 85% public equity performed vs a typical 100% equity fund. Is it worth the additional fees that they're now charging?
Ive recently reveiwed a Nest pension for a family member. Its shocking. They are a low earner and over 9 years the total contributions were 9K. The pot value was 10.2K. Take out the 1.8% contribution fee and the 0.3% annual pot fee and inflation. They would have been better off putting it in a cash ISA. They were thrown in the default fund for their age with no explanation or advice. Due to their age and pot size and the fact they are still in Nest due to their employment I have suggested they switch to the sharia fund to try and get some growth. I have also helped them set up a SIPP to hopefully have a pension worth having in the end. It is only my opinion but the default funds are full of bonds ultimately regulated/overseen by the goverment. Is this a cheap stratergy to use the publics money to fund borrowing?? Just saying.
As a result of impending redundancy it means I can have a serious look at removing everything from NEST and putting it into my SIPP or another provider. I would love the ability to partial transfer as I would try a new provider with some of my pot first but as NEST won't allow it they stand to lose everything I have built up with them.
What price did NEST sell all the BP and Shell shares they held for? One of the best financial decisions I have made was to transfer all my Nest funds into a SIPP and manage it myself. Well outperforming my colleagues who left their pensions with Nest.
First of all, fair play to Nest for being interviewed by the one channel that holds them to account. And well done on getting them in, and also pushing them on the challenges you have identified - namely the contribution fees, limited fund choices and lack of partial transfer options. But oh dear. I am so glad my employer went with another provider… much cheaper (MUCH cheaper!), and better funds (including 100% equity - talk about agency and choice 🤷♂️). Surely providing a 100% equity fund is easier than running a bloody wind farm… What the hell?! Nest? It’s a No from me…
If I don't use NEST, then I lose out on my employer contributions. Also my employer only offers salary sacrifice with NEST, so if I only take advantage of my employer's 3% via NEST but send my own monthly contributions (after tax and NI to a different provider), I'm clearly going to be worse off going elsewhere? There's an assumption of very high growth elsewhere, but where is the evidence that other fund managers perform better than an index fund? So it seems that the only hope is that I take my money, put it into an Index fund and hope for the best?
Great video! Mr Todd looked rather uncomfortable throughout but at least he had the balls to agree to the interview, hopefully they will give an option for 100% equities if enough people complain… allow people the option to de-risk themselves as they get older…. I think more people are engaged with their pension than Nest are giving credit for, however an option should definitely made available for this group of people, it’s very frustrating if not.
As a self employed person, it is really is annoying that we can't get the employer match thing, the government should match it, we are the people trying to grow the goddam economy.
This guy is a snake oil salesman. Windfarms 😂😂😂😂 what a waste of money 😂😂😂 it's very very sad thank god I'm in my own company pension not through NEST : NEARLY EVERY SAVER TRAPPED
Totally agree- the best way to make stacks of cash for Nest members out of wind farms is invest in waste management companies who specialize in large scale disposal of non-recyclable oil-based plastic into landfill. Creates lots of jobs for bulldozer drivers.
It feels that Nest isn't the problem, rather (as usual) education. If anything I think the guest came across really well and presented the Nest ethos convincingly. Damo did his usual good job of drilling down an interrogating, though it did sometimes come across as if he had a preconceived bias against Nest.
The way he looked straight at the floor when asked about partial transfers. He knows exactly why they don't offer it, but he knows we won't like the answer! There's also no reason why the couldn't have left the current Sharia fund as it was an added a new one. Again, complete rubbish. Thanks Damo for having him on, but there was an awful lot of waffle and snake oil and he seemed very uncomfortable throughout. Very much a "we know what's best for your money, now off you pop" attitude. Just give the people what they want and stop coming up with crap excuses.
Why can't they just offer say 10 funds with a number associated with the risk of each fund ? The pension holder then chooses which fund , having decided own tolerance to risk.
I notice he ran out of things to say whenever global equity and fees were mentioned. He really has no idea where a quarter of a billion in fees is going every year? And they can build wind farms and buy forests but buying VWRP is beyond their abilities? I can’t get my old workplace pension out of there quick enough!
All the advice suggests never to invest in default funds for all the right reasons. Nest pensions see higher fees, offer little choice & prevent partial transfers. The sales pitch from Paul Todd stating Nest customers are getting a really really good deal when they arent compared to SIPPs. There is absolutely no reason why they cant allow 100% equity passive index funds right now, apart from perhaps they make bigger fees from other types of investments? The EXCUSE given was around cost of making the changes & had to get schemes to agree to it. Poppycock - they could just provide additional funds as alternatives to the default funds. Please lets not see any more snake oil salesmen on your channel
Because I wanted to ask them about all the points you have raised. Where else are you getting content that directly asks the pension provider why they do the things they do?
@@DamienTalksMoney I take your point Damien, but he didnt provide any real answers - just excuses. please don't take my anger against Nest as criticism of you. You have done far more on your channels to highlight the utter nonsense in the pensions industry & the complete lack of knowledge & transparency. I trust you mate - this guy I wouldnt
@@DamienTalksMoney If there's no conversation, we're just in an echo chamber. I thank you deeply for opening my eyes to my finances over the last year, and this was really interesting. I could see you wanting to bite his head off, but you were super restrained! Hat's off to you mate.
1.8% of £100000 = £1800 - a lot of money for sending an email once a year! disgraceful! - I wonder how many pre-IPO shares via EquityZen funds in Nest all the Lords and MP's have?
I think he spoke well. My pension is not with nest. It looks like that being government funded nest has to pay that 1 billion loan back, and that is why the fees are high.
Would they even remove the 1.8% fee when the 'debt' has been paid? even then, those who've paid 1.8% for decades would then see new arrivals paying less....very fair.
@@ant270it’s not about fair is it, it’s a matter of whether they can do it or not. I mean maybe they won’t do it but they are a public organisation, not for profit so it wouldn’t make sense for them to keep charging it.
Thanks Damien. Good to hear that they are taking the feedback on Sharia onboard which is good. We don't want a limited Dow Jones index fund, it was simply the only one with over ~67% equities. Most of us would be happy with a developed or all world fund and would be derisking manually when we get closer to retirement.
Looking forward to this! I think default pension funds are poor to damaging to your retirement. It's a bit of a jack of all trades. My company use HSBC islamic fund and has returned around 25% last year . Then it's a global passive fund. My work place has 2 default funds the passive world fund at 10% per year return and multi assets fund with a poor 3% return. They are both at 50% and will rebalanced which is double bad for investors. After I watched this video it strangely left me slightly deflated and empty. The 1.8% charge on all contributions seems high and 0.3% annual fee seems like a growth drag and very expensive with large pots. Are there also fund fees? 98.8% still in the default funds shows the lack of knowledge or information., bit of a shocker.
High fees, "thinking" in adding an 100% equity fund, lowering the returns of your best fund and not allowing partial transfers ..... keep up with the great work! your luck is that people have no ideia how their pension works otherwise you would be out of business.
I was not their biggest fan and was planning on moving away from NEST after they changed the sharia fund. After watching this video it may have changed my mind. I wasn't aware about a lot of what they invest in - Probably need to sort that out as I still have no clue after trying to have a quick look and thought it was all public. I do think they should offer a 100% equity fund however, it was really interesting to hear how and why they make their decisions. I was quite angry when they took sharia away from people looking for 100% exposure. After watching this interesting talk I think I probably will leave my fund now but just contribute into additional sipps as well and do some more research into their investments.
Hi I’m currently in the nest retirement date fund 48 have only been paying into it for 7 yrs I am putting 20% in my question is I know shiria is now apparently not as good because it’s 70 /30 but is the 70/30 split still better then the retirement date fund thanks to anybody who may give there opinion on this .
So they can have 50 seperate default funds yet can't provide a single 100% equities global fund for those that know yhe risks of doing so. Make it make sense.
I work for a IFA our fees for the initial fee on regular contributions it’s 0% for clients paying ongoing advice then 1% for transactional clients. 1.8% for no financial advice is insane for a initial fee.
Very restrained and firm chat Damo. Top work.
Really hope Nest change their ways
The Government should step in here and insist that they offer a 100% equity fund. All those millions of people deserve to have all the options as to how their money is invested.
Yes, specially when we paid top ££ to have the scheme set-up.
But who will then deal with the fallout if the stock market crashes shortly after? I bet a lot of the same people moaning about wanting 100% equities will be the same people queuing up to try and sue them or the government for that.
They should offer a 100% fund, but it’s not just a Nest problem. None of my workplace pensions have been through Nest and not one of them offered a global 100% equities fund.
IMO we need to move away from workplaces dictating the pension provider. Sure they should have a default, but it should be that the employee and choose their own provider that the workplace then pays in to. That way you get the choice to move it around as you see fit, but you’re solely responsible for it. Alternatively they should make it mandatory that workplace schemes allow partial transfers - at no cost.
I'm not denying that Nest deserve some flack here because they definitely do. But its incredibly easy for pension providers like them to do what they do when 1 in 4 UK adults have never even logged in to check their pension, and about 9 in 10 are still invested into the default fund. The UK seriously needs to wake up when it comes to finances
100%, the public are far too indifferent to THE best asset for building wealth.
If people were as interested in pensions as they were in homes, for building wealth, NEST would not be getting away with this.
which provider do you recommend i move to?
@@rorymetcalfe552 If you're with Nest through your employer, then you probably don't have a choice, and Nest is better than nothing if you're employer is also making contributions. I don't like my employer's pension provider (Creative/Cushon) because there are nothing but bad reviews online about them, but as my employer is also topping up contributions, it's free money, so I'm sticking with it. But my SIPP is with HL.
I’m a limited company director with around 15 employees, would love a video on what to look for when choosing a pension provider and some examples. Thanks Damo!
On a recent podcast there was a section for employers on how to choose a pension provider
dont use Nest!!!!
high fees, limited funds, lack of transparency on holdings, cant do partial transfer unless if i close my account (so im stuck paying high fees)!! avoid
Fantastic interview - great questions and thought he answered well. Also THANK YOU for not forcing me to skip an advert every 5 minutes. Some videos on this platform are now unwatchable. Thoroughly enjoyed this.
How ON EARTH does the COO have such a poor grasp of his revenue and expense numbers. Amazing.
The ONLY reason I am with Nest is because of my employer contributions.
Being denied 100% equity exposure is criminal, i don't retire for another 41 years?!
Not watched yet but fair play i guess for nest agreeing to do this. They must know Damo is not their biggest fan and might not be the most pleasant interview for them
Exactly this, they didn’t have to talk to us
@@DamienTalksMoney Nest know that the vast majority of their captive audience take little interest in their pension and how it is invested or how much they are being fleeced by Nest so they won't be watching this excellent interview and will remain ignorant. That suits Nest very well indeed.
You know you’ve made it when Nest thinks they have to send their COO onto your show. Great work. And good for them doing it.
I'm doing everything in my power to get my employer to move away from NEST. It's a horrible offering
It's rubbish
Can you not just take the match and move it out of nest to another pension on a regular basis?
@@adrianchatto1 Nope
@@adrianchatto1 they dont allow partial transfers to keep you suckered in. Leeches
If I was in your position, I'd move all my money to a leaving just enough to keep your work pension open. Thats what I did.
Once again thank you damo. Feeling ok with my nest pension but have always been hands on in which I think is the key.Out of the 3 pension funds I hold nest is by far the most user friendly platform.
“How do we support people to turn that saving into what most people want”
- don’t rob them with insane fees
- offer funds that aren’t abysmal
A lot of commenters here are missing several points:
1. The vast majority of NEST members aren't engaged - as mentioned 98pc plus are in the default fund. So adding more funds will be on a long tail i.e. with few members.
2. NEST is the fall-back provider. It is used mainly by employers who are not particularly engaged, many of whom are very small.
Anyone commenting on this video is by their nature financially engaged. So you're part of the 2pc not the 98pc...
Also - he really wasn't kidding about Aussie Super in the UK. Targetting £250bn for 2035... www.gov.uk/government/news/australian-funds-back-british-economy-with-major-moves-to-the-uk
Why not cater for everyone?
Aren't they literally the only provider that doesn't have a 100% equities fund? Bizarre.
If they're not concerned with the 2% then why not allow them to transfer out? NEST are hostage takers to our money.
But isn't that worse? People who aren't engaging are assuming their pension provider is doing their best for them.
Instead their grow if being sniffled and they're being charged 1.8% on every penny that goes in on top of the 0.3% fee a year.
They shouldn't be penalised for an employers choice
How much does the employer pay to be part of the scheme? 0, hence we paying twice? Nevertheless, very expensive.
Imagine taking 1.8% of 12 million+ peoples pension in the UK, then 0.3% ongoing fee, how they managed to swindle that, I will never know.
On top of that, you're unable to choose an equity fund that will mitigate the hefty fees.
At least Dick Turpin wore a mask.
Aside from that, cracking podcast and guests lads, keep up the good work.
Really great interview. He’s obviously a proficient communicator but I’ve heard this guarded waffle too many times wrapped up in a cosy “ we’re on your side” type of chat. Some very interesting issues raised about the general publics level of knowledge and the difficulties financial companies have in meaningful communication and feedback.
Well done for bringing him in, and let's hope they soon open up to a broader area of stocks to those who know what they specifically want to invest in (eg VHVG, S&P etc)
"We can negotiate low fees..." 35:32. How is 1.8% along with 0.3% ongoing fee, LOW??? 🤨
@@ManyMannyMan in fairness the AUM fee of 0.3% is reasonable. Way below the maximum allowed of 0.75% for employer schemes
Buying the Sharia fund from HSBC is 0.27% if you were to buy it and then you'd have a platform fee on top to whomever you use as a broker. Also very competitive on their other mixed asset portfolios that youd struggle to build elsewhere for 0.3% when you factor in BOTH management and platform fees
The elephant in the room is the 1.8% charge on the way in, they seem to imply this is going to paying back the loan (tax payers getting whacked twice)
My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting £15k or £20k With the current market movement at the end of the year they are making millions.
Yes I agree with you on that. I was once a holder with about 3BTC, 7ETH and $8000 worth of lite coin but now after investing have about 17BTC and 21 ETH
Investment is currently the most lucrative business in the world. Both real estate, Stock, and Cryptocurrencies are positively changing people's lives.
Can't imagine earning $85,000 biweekly, God bless Ms. Elizabeth Regina Nelsen, and God bless America🇺🇲❤️
Do you invest with a professional broker? I'd appreciate it if you show me how to go about it.
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Hi mate so excited today just reached my goal of 400k since June2024 to Jan 2025 l thank GOD for the life and wisdom shared.
It's Kimberly Ann Doran doing, she's changed my life.
I'm new at this, please how can I reach her?
she's mostly on Instagrams, using the user name
@Fxdoran6 ..that's it .
Please tell her that I reffed you 👍
She’ll guide you💯
The best financial channel. Literally changed my life in the last year or so. Thanks for what you do.
Since this has been out, my nest pension is now in high risk. Thanks for making a great podcast with top guests I’ve changed my other pensions aswell to plans historically doing 50% better. You’ve made a long term listener here
Damo, I thought you kept your cool here very well, despite this man’s dithering, frustrating, side-stepping answers. I’m not going to call him a liar, but let’s just say he was ‘extremely economical with truth’. He spoke for 90 minutes and didn’t say a thing.
“70/30 is pretty much the same as 100% equities over 15 years” Firstly, No. No, it really isn’t and second of all, most people will be invested for significantly longer than 15 years.
D: “How hard is it to just implement a 100% equities in your line-up”
“Errrrrrhhhhh - we manage lots of people’s money on a daily basis.”
Great! But that’s not the question that was asked…
I agree with the comment from another user that Nest is a simply a quasi-governmental department, set up to invest pension contributions back into UK government via bonds and gilts, whilst taking a fat slice in the process - to the tune of hundreds of millions of pounds. 👎
Was with Nest for 5 years… they are the worst! Open your own sipp and choose your own funds.
Splendid work in this interview Damo!
Yes fair play in that he turned up to represent Nest in what could have been a hiding. But you kept calm, asked all the right questions, and at times seem to know more about their product than he does 💪
Rather than COO, this guy should apply for a job in government - well skilled at not really getting into the nitty-gritty with his answers.
Sadly, this just reinforced what a number of us feel about Nest and it’s not positive.
They absolutely operate for the vast majority who are not engaged - that’s why there’s so much BS answers for the challenging questions - they don’t actually have answers, and don’t care too.
But, glass half full - there’s an opportunity for them to change and improve - but I’d suggest they don’t have much time. Although currently so many people don’t pay enough attention to their pensions, that’s likely to change as people become more educated (thanks to folks like you Damo) and the future of retirement planning is going to get more attention as people start to realise they can’t rely on the state.
Feels like a government backed state investment ponzi scheme ATM!
Seems to me like Nest likely make more money for themselves when their investors are in a 70/30% equities to bond portfolio against a 100% equities portfolio. Don't think any of their reasons for not having 100% equities really stack up e.g. we are too busy, referencing some abstract study in Australia.
"We asked a couple of people and they didn't want 100% equities, so we extrapolated that out to assume that no-one wants it"...
Very good interview, Damien. Well done to both of you for asking the difficult questions!
At the end, I’m left with the feeling that for individual people, it’s best to educate yourself and do your own SIPP (and shoulder the risk).
Because the risk of leaving it to Nest seems to be much higher over the long run..
Poor customer service, poor returns and sky high charges! Along with a over populated board of directors on obscene salaries.
Moved my money at the first opportunity.
@@aficio698 would love to know how much their board members earn
Just want to point out that while not having a 100% equities option is pretty shocking, the worst part is probably that if you WERE one of the few investing in the Shariah fund because of religious beliefs you actually don't have a say in it at all. Given that Nest is a default provider set up by the government, that's dreadful.
Just realised you would have 1 fund choice in that scenario, whilst others have some choice in the funds lineup.
Well done Damien for keeping a level head, balancing your opinion and giving the guest time to explain. Looking at what Nest offer, if it was my DC provider I would exit and transfer it into a SIPP just for the fees and the lack of options I prefer.
Thank you for all your excellent help and advice
- No partial transfers
- Terrible funds
- Egregious fees
Sort it out NEST, this is absolute robbery of the most vulnerable in society.
You can charge what you like when you are the default provider for auto enrollment. I wonder how they managed that...
Transferring my pension away from NEST was immensely satisfying. Hands down the worst pension service in history
I’m waiting for the t212 sipp because InvestEngine isn’t currently allowing transfers in.
Yes, it puzzles me that they got soooo much money from the Gov (the taxpayer) to set it up and when we make contributions they keep a percentage of the contributions going in + the normal fees. Considering the huge output by taxpayers to create the scheme, it feels like we're paying twice.
I wonder how much the other pension providers spent to create their own.
They have sorted it out......the arrangement suits them just fine.
Really good interview, your best yet and I thought the guest spoke well giving sound reasons for their decisions. I think the answer to most of the problems highlighted in the comments is for them to allow partial transfers. This way, that 2% who are engaged can make their own decisions. As Nest have to account for themselves to parliament then we need to ensure our elected representatives are clued up enough to protect the 98%.
ANother cracking video guys. could you drop a video for us self employed people or sole director of limited companies? on this topic, as an employer who currently uses nest but is keen to help my staff, what's the best alternative option(s) to Nest?
Really interesting this one. I feel that Paul gave a pretty good account of himself and Nest on this which was helped by your balanced approach. You let him talk to explain his points but rightly pushed him on certain points. Could almost feel you both biting your tongue on some points. Helped the conversation overall.
It was super interesting albeit disheartening hearing just how few are engaged with their pension. But then again, I was like this a few years ago before finding this channel.
NEST - Notoriously Expensive Slow Torture
I wish they could negotiate lower fees. The largest work based pension scheme in the uk and some of the highest fees. Personally this is just set up as a full on money grab, charges when i pay in and then, a monthly fee on top just a joke, stuck with nest till i leave the company i am currently with, i have just done nine years and the pot size is really poor. Set up my own stock and shares isa and in one year i have managed to grow a savings pot equal in value to my nest scheme.
Paid in for a few years with my employer in to nest. Had no issues UNTIL I tried to move my pension to my current pension. Horrific company.
Disgusting to be honest the guy is literally squirming, he knows Nest are excessively profiteering from hard working people who are not financially savvy, the very people Nest want. Compare default fund returns of 7.3%, to something like a HSBC global equity index fund 29.4% YTD return with a 0.27% fee. Don’t let these greedy companies take your retirement money.
Why do you compare the default fund with global equity tracker rather than another default fund? If you compare like with like you may learn something different
@ because I understand nest don’t have a 100% equities fund to invest in.
It's good you have him on and bring up all the relevant questions, but his waffling is hard to listen to. He says they have been thinking about 100% equity for 10 years? I'd love to see a day in the life of NEST
only with nest because not allowed to choose. trying to access MY money and it is an absolute nightmare. will be easier to tfer to another provider and withdraw through them.
Employers chose Nest because the cost was all one the Employee 1.8% on all contributions is vary expensive.
The management fees of 0.3% aren't too bad.
Popcorn out for this one...
A company using NEST as their pension provider would be enough for me to turn down a job with them. They need to be phased out or radically changed.
Easy to say when you are in a job, but imagine you are unemployed and struggling, highly doubt the pension options will be your deal breaker
I got two friends that didnt wish to proceed with their job applications once they found out the company uses NEST as a provider. I didnt think too much of it in the past but now I cant imagine that I would accept it either, if I gotta search for another job. Its just too much damage to the overall packet..
@JimboJimbo-i4i .......tell me you're joking? Obviously I wasn't referring to a situation where you have a single job offer from an unemployed position.
Great conversation and thank you so much for everyone involved. The auto-enrollment is a fantastic way to help people in taking more care of their future.
My thoughts/questions after listening:
-Considering the big output by taxpayers to create the scheme +1.8% deduction in our contributions + the expected management fees, it feels like we're paying twice. Def not cheap and cheerfull.
-Just because some members want to the option of keeping a 100% equity fund it does not mean that Nest needs to create 100's of new funds, please don't get confused. Inclusivity does not mean 1 fund per person. Nest is being paid very well so, please be more creative and innovative.
Making assumptions on the back of people "not logging in"? That is a knowledge/education issue not a strict pension issue.
At the end, if this is the line of thought governing the decisions and they are causing people to want to leave the scheme, why did the public have to pay for it? Are we just plain cash-cows?
-Regarding this Shariah/100% equity: if it was possible to add the 70/30 new fund, it couldn't be that difficult to keep what was, too. The word Shariah bothers? take it out and call it 100% equity.
Too risky? Once the member feels it no longer serves due to age or whatever, one option is to change the strategy/fund. That's an advertised possibility used by some and a fundamental option in a non-mandated service.
- The assumptions and the lines of thinking of "allowing people to", "charging for changing funds"... what is this? Allowing? We're not being given anything for free and feels short of telling us what to do with our money.
If anything you've have been given a viable business, funded by public money but at the same time you're not a gov body🙄
The tax-payers paid/ pays, top ££ to have this service, so no need for the nanny-ing in what they think is best. Transparent education is welcome though.
-All the paying seems to fall solely on the employee, no wonder it is so popular with the employer. No wonder the fantastic growth.
-I wonder how much the other pension providers spent/and currently spend to create/mantain their own scheme.
-Finally, 31million in staff costs for around 30 million members. Are we ok?
I moved out of nest as soon as I left my contract. Their fees were so incredibly high, with terrible fund options and having a fund for 1 religion which I found wrong in today's world. I told them my views. They need to be run better.
I appreciate the COO of nest coming on here to explain some things and I tried to listen with an open mind, though I don't agree with the reasoning for the most part it's nice to know - particularly the insights on introducing a 100% equity fund.
I currently have a nest pension through my workplace, but I will be looking to transfer out to my SIPP when I change jobs.
Absolutely the right thing to do.
Working in tech I move jobs every 2/3 years and as soon as I leave I transfer them into my SIPP. I don't why know why anybody would leave their money to people like Nest.
One of the big issues that needs looking at is getting people engaged. I work in in a company and out of 15 employees only 1 was engaged with their NEST pension
e.g understanding what a pension is, knowing about the different funds etc etc
There needs to be workplace info re pensions , government adverts etc ….most employees have no clue & just think it’s something taken out of their wages each month
Worse pension provider , I would partial transfer out but they don’t allow it, the negatives go on
Love that they act like they welcome feedback and will listen to the complaints about the sharia changes... when i emailed them about it, they said that i could email back, but they wouldn't be changing their mind about it. Basically "stuff off, we know what we're doing, you don't". Condescending bunch!
Nest was created to be better than nothing. It’s succeeded at that, but there’s plenty of room for improvement.
Nice one Damien, you put him under some pressure at the end! I think they are raking it in, my partner is self employed and has just taken on staff and 1.8% on the way in is a bit unfair IMO, BUT anything is better than nothing. I have a pension that i pay 39% of my wages into and luckily my fees are under 0.22% overall via my works private pension.
❤ excellent interview, great questions, and answers.
Does existing NEST mean one forfeit employers 3% and potential matched contributions?
Just got my confirmation from Nest last week that they have transfered me out. Worst pension provider out of all i have used. Also most expensive
Where did you transfer your pension to? Was us easy?
@ceciliabrown3301 ii and yes. Nest make it really difficult though. It took 6 months to transfer my husbands one out last year
At about 43mins, Mr Todd states that, they had tried to survey people in respect to changes to the Sharia fund. As someone who is deeply in tune with my NEST pension - which is invested in the Sharia fund, I can assure you no such survey or questions were made by NEST. None whatsoever.
Can you send me a screenshot of that please so I can raise it to Todd directly?
@ Hi. The point was made at about 43 minutes in if you want to review. Not sure what benefit a screenshot will do sorry. Also if I do send a screenshot, where do I send it?
Exactly what I was going to comment. The first notification I got was an email saying the change was being made.
Same here. I will be moving out soon. But when around 90% of the members are in the default, I wonder if they would listen to the complaints. Anyway, I'm responsible for my own financial situation and will act on the best for my future. I wish people would pay more attention to their finances and see that there are ways to improve and they have more power than they think (actually all the power, when together)
Sam for me too, log into nest weekly, have been part of the Sharia for years and the first notification was saying the fund was changing, no feedback requests at all
I’m with SW. The choice of funds is great. Easy to use interface. So glad I’m with them
Your guest did not go to university and it shows. He's trying to convince us that a 70% equity / 30% bond fund is almost the same as a 100% equity fund. This is not the case!
Someone in their early 20s needs to be in a 100% equity fund. It's almost criminal that the 13 million members of Nest are not offered this option!
Beside the COO having no university degree, the new CEO of Nest has a degree in geography...and these people are managing the investments for 13 million people???
@stevegreen3746 why does a university education determine whether someone should be running a company?
@@richsmart321Nest manages the investments for 13 million people, that's a gigantic responsibility, I would expect the people in charge to have a degree in an economics or finance related field.
@@richsmart321 Nest manages the investments for 13 million people, that's a gigantic responsibility, I would expect the people in charge to at least have a degree in an economics/finance related field.
Rachael Reeves was customer services and now she's a disaster of a chancellor, so there you go.
Yet another great video with asking very heavy weight questions and paul was really under pressure, but handle it well
Spoke a lot and said nothing, except we will do what we want regardless of what their clients want.
Damien, it would be very useful to have a video that discusses the pros and cons of private equity within a pension fund. How has a fund thats say 15% private equity, 85% public equity performed vs a typical 100% equity fund.
Is it worth the additional fees that they're now charging?
Ive recently reveiwed a Nest pension for a family member. Its shocking. They are a low earner and over 9 years the total contributions were 9K. The pot value was 10.2K. Take out the 1.8% contribution fee and the 0.3% annual pot fee and inflation. They would have been better off putting it in a cash ISA. They were thrown in the default fund for their age with no explanation or advice. Due to their age and pot size and the fact they are still in Nest due to their employment I have suggested they switch to the sharia fund to try and get some growth. I have also helped them set up a SIPP to hopefully have a pension worth having in the end.
It is only my opinion but the default funds are full of bonds ultimately regulated/overseen by the goverment. Is this a cheap stratergy to use the publics money to fund borrowing?? Just saying.
My god that return is absolutely awful
Sharia fund is now 30% bonds too
who do you recommend moving onto?
@@danupton5673 i suppose you are saying move your pension to Sharia?
@rorymetcalfe552 no it's 30% bonds now. Just move away from Nest, if you can.
I felt it was really good. 46:53 your guests Apple Watch thinks he is doing a workout. How much pressure did you apply chaps??
This guy dont know alot considering he runs the thing.
Great grilling at around the 1 hour mark.
I turned down a job because the pension was with NEST!
Fair play
Good vid, not a Nest user but I think you were a good host and challenged appropriately
As a result of impending redundancy it means I can have a serious look at removing everything from NEST and putting it into my SIPP or another provider. I would love the ability to partial transfer as I would try a new provider with some of my pot first but as NEST won't allow it they stand to lose everything I have built up with them.
What price did NEST sell all the BP and Shell shares they held for? One of the best financial decisions I have made was to transfer all my Nest funds into a SIPP and manage it myself. Well outperforming my colleagues who left their pensions with Nest.
First of all, fair play to Nest for being interviewed by the one channel that holds them to account.
And well done on getting them in, and also pushing them on the challenges you have identified - namely the contribution fees, limited fund choices and lack of partial transfer options.
But oh dear.
I am so glad my employer went with another provider… much cheaper (MUCH cheaper!), and better funds (including 100% equity - talk about agency and choice 🤷♂️). Surely providing a 100% equity fund is easier than running a bloody wind farm… What the hell?!
Nest? It’s a No from me…
Disappointing that one of the largest pensions fund in the UK appears not to be 100% honest and speaks in sentences which make no sense
If I don't use NEST, then I lose out on my employer contributions. Also my employer only offers salary sacrifice with NEST, so if I only take advantage of my employer's 3% via NEST but send my own monthly contributions (after tax and NI to a different provider), I'm clearly going to be worse off going elsewhere? There's an assumption of very high growth elsewhere, but where is the evidence that other fund managers perform better than an index fund? So it seems that the only hope is that I take my money, put it into an Index fund and hope for the best?
Great video! Mr Todd looked rather uncomfortable throughout but at least he had the balls to agree to the interview, hopefully they will give an option for 100% equities if enough people complain… allow people the option to de-risk themselves as they get older…. I think more people are engaged with their pension than Nest are giving credit for, however an option should definitely made available for this group of people, it’s very frustrating if not.
As a self employed person, it is really is annoying that we can't get the employer match thing, the government should match it, we are the people trying to grow the goddam economy.
This guy is a snake oil salesman. Windfarms 😂😂😂😂 what a waste of money 😂😂😂 it's very very sad thank god I'm in my own company pension not through NEST : NEARLY EVERY SAVER TRAPPED
Totally agree- the best way to make stacks of cash for Nest members out of wind farms is invest in waste management companies who specialize in large scale disposal of non-recyclable oil-based plastic into landfill. Creates lots of jobs for bulldozer drivers.
It feels that Nest isn't the problem, rather (as usual) education. If anything I think the guest came across really well and presented the Nest ethos convincingly. Damo did his usual good job of drilling down an interrogating, though it did sometimes come across as if he had a preconceived bias against Nest.
The way he looked straight at the floor when asked about partial transfers. He knows exactly why they don't offer it, but he knows we won't like the answer!
There's also no reason why the couldn't have left the current Sharia fund as it was an added a new one. Again, complete rubbish.
Thanks Damo for having him on, but there was an awful lot of waffle and snake oil and he seemed very uncomfortable throughout. Very much a "we know what's best for your money, now off you pop" attitude. Just give the people what they want and stop coming up with crap excuses.
Why can't they just offer say 10 funds with a number associated with the risk of each fund ? The pension holder then chooses which fund , having decided own tolerance to risk.
I notice he ran out of things to say whenever global equity and fees were mentioned. He really has no idea where a quarter of a billion in fees is going every year? And they can build wind farms and buy forests but buying VWRP is beyond their abilities? I can’t get my old workplace pension out of there quick enough!
If a company offers NEST asking they can do at least partial transfers out!
They don’t really say which schemes best. The sharia was but which one now?
After listening to this and reading the comments i moved my pension out of nest.
All the advice suggests never to invest in default funds for all the right reasons. Nest pensions see higher fees, offer little choice & prevent partial transfers. The sales pitch from Paul Todd stating Nest customers are getting a really really good deal when they arent compared to SIPPs. There is absolutely no reason why they cant allow 100% equity passive index funds right now, apart from perhaps they make bigger fees from other types of investments? The EXCUSE given was around cost of making the changes & had to get schemes to agree to it. Poppycock - they could just provide additional funds as alternatives to the default funds. Please lets not see any more snake oil salesmen on your channel
Because I wanted to ask them about all the points you have raised.
Where else are you getting content that directly asks the pension provider why they do the things they do?
@@DamienTalksMoney I take your point Damien, but he didnt provide any real answers - just excuses. please don't take my anger against Nest as criticism of you. You have done far more on your channels to highlight the utter nonsense in the pensions industry & the complete lack of knowledge & transparency. I trust you mate - this guy I wouldnt
@@DamienTalksMoney If there's no conversation, we're just in an echo chamber. I thank you deeply for opening my eyes to my finances over the last year, and this was really interesting. I could see you wanting to bite his head off, but you were super restrained! Hat's off to you mate.
1.8% of £100000 = £1800 - a lot of money for sending an email once a year! disgraceful! - I wonder how many pre-IPO shares via EquityZen funds in Nest all the Lords and MP's have?
I think he spoke well. My pension is not with nest. It looks like that being government funded nest has to pay that 1 billion loan back, and that is why the fees are high.
Good interview, funny to watch him squirm. Glad I'm not invested in nest anymore
Been waiting for this one
Edit: yep, seems like until this ‘debt’ is paid it will be a terrible pension provider going forward.
Would they even remove the 1.8% fee when the 'debt' has been paid? even then, those who've paid 1.8% for decades would then see new arrivals paying less....very fair.
@@ant270it’s not about fair is it, it’s a matter of whether they can do it or not.
I mean maybe they won’t do it but they are a public organisation, not for profit so it wouldn’t make sense for them to keep charging it.
When will there be a public enquiry because unlawful vibes with our money, the new post office gas lighting
£100m seems to still be on the table in costs ("but I'm not going to go into that"). Not for profit...
Nest are just the same as any other pension provider that deal with low income people.
I managed to move pension to aegeon, i then moved my remaining nest to Vanguard. Not a fan of nest at all
Damo, has your opinion of Nest changed since having them on?
Nest look awful seems so shady
Thanks Damien. Good to hear that they are taking the feedback on Sharia onboard which is good. We don't want a limited Dow Jones index fund, it was simply the only one with over ~67% equities. Most of us would be happy with a developed or all world fund and would be derisking manually when we get closer to retirement.
You don't have to choose the Shari'ah fund in that case do you? But what about us who are (1) Muslim and/or (2) like risk?
Looking forward to this! I think default pension funds are poor to damaging to your retirement. It's a bit of a jack of all trades. My company use HSBC islamic fund and has returned around 25% last year . Then it's a global passive fund. My work place has 2 default funds the passive world fund at 10% per year return and multi assets fund with a poor 3% return. They are both at 50% and will rebalanced which is double bad for investors.
After I watched this video it strangely left me slightly deflated and empty. The 1.8% charge on all contributions seems high and 0.3% annual fee seems like a growth drag and very expensive with large pots. Are there also fund fees? 98.8% still in the default funds shows the lack of knowledge or information., bit of a shocker.
High fees, "thinking" in adding an 100% equity fund, lowering the returns of your best fund and not allowing partial transfers ..... keep up with the great work! your luck is that people have no ideia how their pension works otherwise you would be out of business.
Ignorance is the biggest debt you can have - Nest rely on ignorance - shame on them
Summed up perfectly.
I was not their biggest fan and was planning on moving away from NEST after they changed the sharia fund. After watching this video it may have changed my mind. I wasn't aware about a lot of what they invest in - Probably need to sort that out as I still have no clue after trying to have a quick look and thought it was all public. I do think they should offer a 100% equity fund however, it was really interesting to hear how and why they make their decisions. I was quite angry when they took sharia away from people looking for 100% exposure. After watching this interesting talk I think I probably will leave my fund now but just contribute into additional sipps as well and do some more research into their investments.
They are more cautious than Gareth Southgate was
Hi I’m currently in the nest retirement date fund 48 have only been paying into it for 7 yrs I am putting 20% in my question is I know shiria is now apparently not as good because it’s 70 /30 but is the 70/30 split still better then the retirement date fund thanks to anybody who may give there opinion on this .
Think he’s made the explanations quite basic … Not realising everyone watching is semi educated in pensions…
So they can have 50 seperate default funds yet can't provide a single 100% equities global fund for those that know yhe risks of doing so. Make it make sense.
I work for a IFA our fees for the initial fee on regular contributions it’s 0% for clients paying ongoing advice then 1% for transactional clients. 1.8% for no financial advice is insane for a initial fee.