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?
Match with a portfolio that’s specifically built and managed for your investor profile
Made and managed for you
Our team of experts manage your pension for you to ensure you’re on track to reach your goals
The investments in your pension will adjust as you get older, for free
Generous tax benefits
Supplement your pension contribution with generous tax benefits
The hardest decision you have to make is when and how much you can invest in your pension
Don’t let expensive fees eat into your retirement income – keep more of your money for the important stuff
Transfer for free
Manage all your pension savings in one place to make sure you’re on the right track to reach your goals
Know what you’re invested in, how your pension is performing and how much you’re paying anywhere and any time
For flexibility in retirement, withdraw at any time, without any additional fees
How the Moneyfarm Pension can help you
The Moneyfarm Pension is a personal pension plan designed to give you financial security throughout retirement. By investing your pension pot in the financial markets, you aim to protect your money from inflation and benefit from positive market trends.
The amount you get in retirement depends on how much money you put in your private pension throughout your working career and how your pension fund performs.
The pension landscape has been overhauled to provide more options and flexibility to Brits saving for their pension. With more choice, comes more decisions, which can make it more difficult for savers to know that’s right for them.
How it works
Tell us about you
Fill in a questionnaire about your goals, time horizon, financial situation and attitude to risk.
Match with an investor profile
Prepare for your retirement with an investment portfolio that’s built to help you achieve your goals.
Add money to your pension via direct debit, and build up your pension pot for retirement.
Remember the important things in life
Moneyfarm manages your investments for you, so you can focus on making memories today.
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|
Transfer your pension to Moneyfarm
With the average Brit having 11 jobs in their career, it can be difficult managing all your pensions. If you don’t know exactly what you’ve got, how do you know if you’re on track to reach your goals? Don’t make life hard for yourself. Transfer your existing pensions to Moneyfarm for free and manage all your savings in one place – life shouldn’t always be full of surprises.
To consolidate your pensions, sign up to Moneyfarm and select the Pension account. You can download a pension transfer form, which you’ll need to print out, fill out, sign and send to the address stated. Depending on where you’re transferring your pension from, there may be additional paperwork to sign. If this is the case, we will get in touch.
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.
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.
You’ll be charged a management fee at an account level by Moneyfarm. The total cost of investing includes two further costs, the transaction cost (market spread) and fund fee.
Find out how much you could be charged and get more information on costs with our interactive model, on our pricing page.
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.
Whether you invest £10,000 or £1 million, our investor-friendly fee structure will suit your needs.
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 portfolio 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.
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.