Nest or ISA

A question about : Nest or ISA

Currently my son is doing casual work for an Agency. I want to save Ј50 in his nest pensions every month or make a single contribution. He has only got Ј150 in his pot. I would like some advice whether it will be worth doing as if I start saving Ј50 monthly now even if he does not work. How much will be there in the pot and with the commission and admin fees I wonder whether it will be worthy. Pl can you advise as the other option is for me to save that money in an ISA. Can the pot be less than the amount contributed on retirement? Thanks

Best answers:

• In the circumstances, perhaps you could give your son the Ј50 to save into a regular savings ISA and he could use the lump sum to contribute to a pension when his job status is more certain?
• It's not worth paying any more into NEST than the amount it takes to get employer matching. If you want to make extra pension contributions, do it into a different pension scheme that has fewer restrictions and better investment choices at lower cost than NEST.
  A pension or S&S ISA pot can be less than the amount contributed on retirement but it is extremely unlikely if it's being done with regular contributions over more than fifteen years. By that point the chance of being better off than cash will have reached at least 99%.
  For a person on means tested benefits pension pots don't count but ISA pots in their name are considered savings for the means test. That means that for those who may end up depending on means tested benefits it is better to use a pension of some sort for retirement investing. Alternatively, you could invest in your own name and ensure that your will designates him as the beneficiary of the money.