Private Pension

Targeted, tax-free investing for a secure tomorrow

Globally diversified, actively managed and free to access in retirement – our private pension is built and managed around your target retirement date.

With investment, your capital is at risk.

Pay less tax today and tomorrow

Receive up to 45% tax relief on your contributions and enjoy tax-free cash at retirement.

Save on fees and stay in control

Invest when you want, set up employer contributions, and combine pensions to save on fees.

Plan for the retirement you want

Set goals with your investment adviser, backed by digital investment advice to keep you on track.

What your Moneyfarm Private Pension can do

Real diversification

We combine different asset types, geographies and currencies to target long-term growth at low cost and the right level of risk for your retirement.

Target date approach

We’ll rebalance your portfolio as your retirement date approaches, shifting from riskier assets such as equities in the earlier years, towards lower-risk investments.

Free income drawdown

We explain your options on using your retirement funds to give you an income while leaving the rest invested to keep growing. Learn more

No hidden costs

Our single account management fee keeps things simple, with no penalties to worry about and free transfers in or out of Moneyfarm.

Actively managed to keep your retirement on track

Our portfolio management team will monitor, adjust and rebalance your pension portfolio to grow in the long term while making the most of short-term opportunities.

More on our portfolios

Our four year track record
Our PortfoliosMoneyfarmCompetitors
P1 – Low Risk8.4%4.1%
P216.4%14.3%
P328.6%22.4%
P4 – Medium Risk31.6%22.4%
P536.5%31.8%
P640.7%31.8%
P7 – High risk55.2%38.9%

Key to the figures
Moneyfarm returns net of fees since inception (01/01/2016 to 31/12/2019) vs. average peer group performance over the same time period.
These past performance figures are simulated. Past performance is no indicator of future performance.

Important information

Moneyfarm data

The returns here are simulated using an assumed balance of £250,000, and the average management fee from our pricing model of 0.46% from 01/01/2016 to 31/10/2017 and 0.55% from 01/11/2017 to the 31/12/19. The returns are net of underlying fund costs and market spread. The returns are the total returns, so include all dividends. (Data Source: Bloomberg/xignite)

Peer Comparison Data

Asset Risk Consultants ARC collects the monthly returns of a collection of discretionary investment managers including large Asset managers, private banks and Wealth Managers to create an index of the average returns for a given level of risk.

ARC benchmarks are as follows;
Private Client IndexRelative Risk to World Equities
ARC Cautious PCI0 – 40%
ARC Balanced Asset PCI40 – 60%
ARC Steady Growth PCI60 – 80%
ARC Equity Risk PCI80 – 110%

Where the relative risk to World Equities means you are taking approximately that percentage of the risk global stock markets.

Moneyfarm’s Risk level 2 is compared to the ARC Cautious Private Client Index (PCI), our risk levels 3 and 4 use the ARC Balanced Asset Private Client Index (PCI), levels 5 and 6 are both compared to ARC Steady Growth Private Client Index (PCI) and our risk level 7 is matched to ARC Equity Risk Private Client Index PCI

ARC compiles indexes using the average competitor returns, including Barclays Wealth, HSBC, Investec Wealth and Investment and Blackrock, as well as many others.

P7 Portfolio

Please note that ARC does not independently verify the performance of the Model submitted by Moneyfarm. The returns shown refer to simulated past performance of our model portfolios from 01/01/2016 to 31/12/2019, this portfolio only became available to clients on 16/05/2019. Past performance is not an indicator of future results.

P1 Portfolio

ARC does not produce an index that is a suitable comparison for P1, as it does not contain any equity. We use monthly GBP Libor + 0.5%, as this is a cash proxy, which Moneyfarm believes is a fair comparison.

Pension calculator
How your retirement income could look

Are you unsure how much you should be saving in your pension? Remove the guesswork and use the free Moneyfarm Pension Calculator to find out how much you should be putting away each month.

Calculate your pension

Planning for a better tomorrow

1. One-to-one live guidance

For the big decisions about your future or the times you’d just prefer to speak to someone, call, email, chat online or meet face to face with your adviser. They’ll help you to refine your personal plan and portfolio in line with any changes in your circumstances.

2. Evaluate your retirement plan

We’ll help you plan ahead and think about your next steps, reviewing your existing investments, looking at performance, cost and quality. We’ll estimate your retirement income and help you with combining your pension pots or drawdown.

3. Monitored to keep you on track

You’ll receive digital investment advice from day one, delivering your investment plan and recommending an actively managed portfolio matched to your goals, experience, attitude to risk and the volatility you can handle. It keeps your portfolio ideally suited to you, even if your circumstances change.

Keep more of your retirement money

A single account management fee covers all your products – the more you invest, the lower your effective fee rate.

Free transfers in and out

No trading or dealing costs

Target-dated and free drawdown

On the first
£10,000
0.75%

per year

On anything between
£10,000 - £50,000
0.60%

per year

On anything between
£50,000 - £100,000
0.50%

per year

On anything over
£100,000
0.35%

per year

+ average investment fund fees per year 0.20%
+ effect of market spread? per year up to 0.09%

Minimum investment: £5,000 or £1,500 + regular direct debit

Take control of your retirement today

It’s quick and easy to get started. Build your Moneyfarm Private Pension in minutes.

1. Tell us about yourself

What you’re investing for, the length of time you’re working until retirement and your approach to risk. This will help us build your investment plan.

2. Get your plan and portfolio

We’ll recommend a globally diversified portfolio suited to you and your goals. You can discuss your recommendations with your investment adviser before you go ahead.

3. Build your retirement pot

Fund your account to get automatic 20% tax relief, set up employer contributions and combine existing pensions. Depending on your tax status you could claim more tax relief.

Get started now

Pension tax benefits that really add up

Tax relief on contributions

Get 20% automatic tax relief on contributions, and claim up to 40% or even 45% if you’re a higher or additional rate taxpayer. The result is £100 in your pension for an outlay of £80 (or less).

No tax within the pension

You won’t pay income tax or capital gains tax on income or growth within the pension. This can make a big difference over the long term, especially if you’re saving for decades.

Tax-free lump sum on withdrawal

From age 55, you can typically take up to a quarter of your whole pension as a tax-free lump sum if you want to, with flexibility about how you use the rest.

Start a pension
Basic rate of tax – <£50,000
Tax relief20%
To get £10,000 in your pension add£8,000
Additional relief through HMRC0
Higher rate of tax >£50.000 – <£150,000
Tax relief40%
To get £10,000 in your pension add£8,000
Additional relief through HMRC£2,000
Additional rate of tax – >£150,000
Tax relief45%
To get £10,000 in your pension add£8,000
Additional relief through HMRC£2,500

Transfer your pension to Moneyfarm

Combining your old pensions can make them easier to manage, help you save on fees, and offer more withdrawal options later on. It’s easy to do and gives you one clear view of your retirement, which you can check any time.

We’ll need your provider’s name, your account number and the pension’s estimated value. You can enter these details online or via the app and we’ll manage the transfer process for you, free of charge.

We’ll talk to your existing provider and move your pensions over for you electronically, removing paperwork from the transfer and this process should take three to four weeks, although this depends on your provider.

Transfer a Pension

We keep you, your pension and your data safe

Protected

Our Sectigo-certified encrypted connection protects your personal data and keeps your account details safe.

Secured

We keep your money and investments separate from our own, held in accounts with Barclays and Saxo Capital Markets.

Regulated

We’re FCA-authorised and covered by the UK Financial Services Compensation Scheme (FSCS), providing an additional layer of protection for your investments of up to £85,000.

Pensions Frequently Asked Questions

It’s important you understand all the options available to you to make the right decisions with your retirement savings.

Here you can find some answers to the most frequently asked questions, our you can read more on retirement on our pension guide linked below.

Read our pension guide

What is a pension?

A Self Invested Personal Pension (SIPP) is a personal pension scheme that helps you accumulate a sum of money to provide you with an income throughout retirement. Fortunately, the government wants you to save for retirement, so there are a number of tax benefits available to you. You save into a pension so that you have an income when you retire. This depends on the value of your savings when you retire, which in turn depends on how much you put in and how your investments perform. The Moneyfarm Pension helps you save for retirement in a tax-efficient way. When you invest in a Moneyfarm Pension you’ll be invested in the portfolio that best reflects your needs.

How do pensions work?

A Self Invested Personal Pension (SIPP) is a personal pension scheme that helps you accumulate a sum of money to provide you with an income throughout retirement. You may be eligible for tax benefits when you contribute to a pension, whilst your money is invested, and when you retire.

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.

How much should I contribute to my pension?

When it comes to saving for your future, the more you can put aside the better, to ensure your financial security. It all depends on the standard of living you’re expecting when you retire. You can get an idea of what you might need by using our Pension Calculator.

What is the annual pension allowance?

In the 2019/20 tax year, you can put away up to £40,000 or all your ‘relevant earnings’ – whichever is lower without paying tax on it. Relevant earnings include your salary along with other sources of income – HMRC lists what is and isn’t included. You can invest more than £40,000 if you want, but you’ll need to pay tax on that.

Before you start using your pension savings, you can usually ‘carry forward’ up to three years of unused allowance. Once you start taking benefits, you’ll normally be subject to the ‘Money Purchase Annual Allowance’, which restricts the level of your contributions to ‘money purchase’ pensions, including your Moneyfarm Pension.

Can my employer make contributions to my Moneyfarm pension?

Yes, for most people this will be possible. You can register your employer by filling out the attached form and returning it to support@moneyfarm.com to start the process. Please contact our investment adviser team if you want to know more.

I’m self-employed, can I use the Moneyfarm Pension?

Yes you can, as a self employed person you have the same allowances as an employed person. If you are an employee of your own company, you may be able to make employer contributions into your personal pension. You can speak to the investment adviser team for more details, and we recommend for tax queries in respect of pension contributions and your business, you speak to a qualified advisor or accountant. To register your employer for this, please email support@moneyfarm.com today.

Can I transfer a pension?

You can transfer money from your other pensions into your Moneyfarm Pension, including from SIPPs and workplace pension schemes, so long as you haven’t started to take income from them. You won’t be able to transfer defined benefit schemes, also known as final salary schemes. Your pension savings are initially transferred as cash, and then reinvested once the money arrives in your Moneyfarm Pension. You may lose certain benefits or incur exit fees if you leave your current provider, and there is no guarantee that the benefits you receive from your Moneyfarm Pension will be more favourable, and may be lower. Moneyfarm won’t charge you a fee for transferring your pension. It is important you understand any changes in guarantees or benefits and the fees your current provider may charge before transferring your existing pensions to the Moneyfarm Pension.

How do I transfer a pension?

When you create a pension portfolio with Moneyfarm you’ll be asked if you’d like to transfer a pension. All you need to do is fill in the fields and we’ll manage the transfer process on your behalf, free of charge. You’ll need to know your current pension provider, account number and estimated value.

Is there a minimum transfer value?

Standard Moneyfarm minimums apply – you’ll need at least £1,500 to open a portfolio but we recommend at least £2,500 to benefit from full diversification. You’ll need to set up a monthly Direct Debit of £100 if you have less than £5,000 in your pension.

How long does it take to transfer a pension?

Pension transfers vary by provider. Some providers are on an automated platform which takes an average of eight working days. Others take longer, up to as much three months. The team at Moneyfarm will chase your existing provider on your behalf and let you know if there are any issues.

What type of pensions can I transfer?

We can accept the transfer of any defined contribution pension, provided you haven’t started to take benefits from this and that there are no loss guarantees. We can’t accept the transfer of final salary (defined benefit) pensions without you taking independent financial advice. If you have already started to take benefits from your pension we can’t accept the transfer.

Can I transfer a pension if I’ve started to take benefits?

No, unfortunately we can’t accept crystallised pension transfers. If you have only crystallised a portion of your pension (taken benefits from a small amount of your overall pension) then we can transfer the uncrystallised portion.

What is the lifetime pension allowance?

Pensions have a lifetime allowance, which is £1.05 million in the 2019/20 tax year. If your total pension savings exceed the lifetime allowance when you decide to take benefits, a tax charge applies, called the lifetime allowance charge. The amount of the lifetime allowance charge depends on how you take the excess benefits from your pension. If you take the excess as a lump sum, it will be subject to a 55% tax charge. If you decide to use the excess as income, it will immediately be subject to a 25% tax charge, and your income will then be subject to income tax. If your savings exceed the new lower limit after the standard lifetime allowance was reduced to £1 million in 2016, you may be able to apply for a lifetime allowance protection scheme.

How much tax will I pay on my pension?

You can usually take 25% of your total pension pot as a tax-free lump sum from the age of 55. The remainder can be used to provide you with an income throughout retirement -typically through an annuity or income drawdown – and will be subject to income tax depending on its value and your other taxable income. You may end up paying a lower rate of tax when you retire as your income reduces. For example, you may pay 40% tax when working, but just 20% when you retire. Remember, there are generous tax advantages to saving into a personal pension, you can find out more on our pension page.

What annuity could I get with my pension when I retire?

If you use all or part of your pension to purchase an annuity with another provider, the amount of income and level of benefits you receive will depend on the annuity rate offered to you by the annuity provider you choose at the time. Annuity rates may be lower in future. If you have any questions, contact a financial advisor.

What happens to a pension when you die?

If you die before the age of 75, the value of your pension can be paid to your beneficiaries in the form of a lump sum or income. The benefits will normally be tax-free, as long as they are paid (or, in the case of the payment of pension income, designated for that purpose) within two years of your death. Your beneficiaries may pay a tax charge if your pension value exceeds the lifetime allowance. If you die after reaching 75, the value of your pension can still be passed to your beneficiaries, but will be subject to income tax.

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