What is the Moneyfarm Pension?
Life is too short to forget about the future you, but protecting and growing your money can be difficult.
Building an investment portfolio that reflects your personal goals, time horizon and financial situation is tricky to get right. At Moneyfarm, we do the hard work for you, matching you with an investor profile and portfolio that’s built, managed and regularly rebalanced to ensure you stay on track to achieve your retirement goals.
Invest with Moneyfarm for a low-cost, transparent and simple investment solution, that’s built to help you reach personal financial goals.
Why choose a Moneyfarm Pension?
Transfer and consolidate all your pensions to Moneyfarm for free. We’ll manage all the process for you so that you don’t have to worry about it
We’ll adjust the investments in your pension as you get older, and automatically de-risk your investment as you get closer to your target retirement date
Flexible access to your pension when you reach retirement. You can benefit from flexi-access drawdown without any additional fees
We match you with a portfolio that’s specifically built for your goals and suitable for your investor profile
We make sure that your pension remains on track with your goals and your risk profile as you age
Our team of experts rebalance your pension portfolio for you to manage risk and maximise returns
Tax benefits to the Moneyfarm Pension
Start saving into your Moneyfarm Pension to enjoy the generous tax benefits. We take on this cost for you so you’ll automatically
get 20% tax relief on your contributions – no waiting for HMRC.
You’re able to claim relief relative to your pension contributions depending on how much tax you pay. If you’re a basic rate payer you will pay £8,000 for a £10,000 pension contribution, and a higher rate band will pay just £6,000.
If you’re a higher rate payer, make sure you don’t miss out on the tax benefits you’re owed. Fill in your tax return form to reclaim your relief. You’ll either receive it as a rebate at the end of the tax year, a reduction in your tax liability, or HMRC will change your tax code.
|Basic rate of income tax|
|To get £10,000 in your pension add||£8,000|
|Auto relief or claim to HMRC?||Auto|
|Higher rate of income tax|
|To get £10,000 in your pension add||£6,000|
|Auto relief or claim to HMRC?||HMRC|
|Additional rate of income tax|
|To get £10,000 in your pension add||£5,500|
|Auto relief or claim to HMRC?||HMRC|
How it works
Discover your investor profile
Fill in a questionnaire about your goals, time horizon, financial situation and attitude to risk.
Match with the right portfolio
Prepare for your retirement with a pension portfolio that’s built to help you achieve your goals.
Add funds to your pension
Add money to your pension via direct debit, and build up your retirement pot for the future.
Remember the important things in life
Moneyfarm manages your pension for you, so you can focus on making memories today.
How much will my Moneyfarm Pension cost?
Our fees are low-cost to ensure that you keep more of your money for retirement. Whether you invest £10,000 or £1 million, our investor-friendly fee structure will suit your needs. There will be no surprise flat fees or charges for rebalancing, transferring or for meeting targets.
At Moneyfarm, we believe everyone should have access to simple and low-cost investment solutions – especially when they are protecting their money for their family’s future.
What our customers think
Transfer your pension to Moneyfarm
It’s likely that you’ve paid into more than one pot if you’ve had more than one job. Combining your pension pots could make your pensions easier to manage and help you save on fees.
Consolidating your pensions into Moneyfarm is easy. Just fill out the required information and we’ll take it from there.
We’ll talk to your existing provider and move your pensions over to your Moneyfarm account. This process should take three-four weeks, although this depends on your provider. It won’t cost you a thing to transfer your pension to your Moneyfarm account, although your existing provider may have some transfer out charges.Transfer a Pension
Retirement doesn’t come cheap, but the sooner you start saving for your future, the less it impacts your day-to-day living. But how much should you be saving with each pay cheque?
Remove the guesswork and use the free Moneyfarm Pension Calculator to find out how much you should be putting away each month to achieve that dream retirement.
We’re here for you
Whether you need help, reassurance, or just a good old-fashioned conversation, our investment consultants are here to talk you through every part of your investment journey.
You’ll love our investment consultants, who are here to talk you through your Pension performance, in the way that’s right for you.
How a target date product can help you
Whenever you invest, your risk profile affects what goes into your portfolio. The longer you have, the more risk you can afford to take and the higher your scope for return. As your time horizon changes, so should the composition of your portfolio. At Moneyfarm, your pension is built with exchange traded funds (ETFs) to keep your investments low-cost and transparent.
The Moneyfarm Pension is a target date product, which means we rebalance your portfolio to keep you on track to achieve your financial goals. Once you invest in your Moneyfarm Pension, you can get on with the important things in life, knowing we have your back.
How to use your pension
Pension freedoms have unlocked the freedom and choice in the pension system, but this can leave many Brits scratching their heads when it comes to planning how to use their pension savings. Once you reach the age of 55 you can take 25% of your pension savings tax free which means you can then:
- Buy a flexible income drawdown
- Buy an annuity
- Withdraw it and keep it as cash
- Do a mixture of the three
Keeping your money in cash might seem like a safe option, but you’re leaving the value of your money exposed to inflation. If you aren’t earning an inflation-beating return on your cash, your money will be losing purchasing power over time.
Whilst many savers like the stability of an annuity income, the low interest rate environment mean the returns offered from providers can be small and there is no flexibility.
Once you’ve made your decision, you can’t change your mind and you have to make sure you pick the right options if you want to pass on your savings when you die. Income drawdown offers savers much more flexibility. You won’t have to save up your annuity income for any urgent home repairs, or to make the impromptu group City Break for your friend’s birthday.
You decide how much you want to spend, and then to spend it. By keeping your money invested in the financial markets, you hope to benefit from market trends for longer. But be careful – once you use up your savings, your money is gone.
If you have any questions, don’t hesitate to get in touch with our qualified investment consultants.
Frequently Asked Questions
What is a pension?
How do pensions work?
You can claim tax relief on your personal pension contributions relative to your income tax band. The investments in your pension will grow free from income tax and can be sold without incurring a Capital Gains Tax charge. You can usually take 25% of your total pension pot as a tax-free lump sum from the age of 55, and the remainder will be taxed according to your income tax band.
Once you’ve started to save into your pension, you will normally have to wait until you’re 55 before you can draw any money from it. You can then decide whether to go into income drawdown, buy an annuity with your savings, or do a combination of the two.