Moneyfarm
Personal Pension

Moneyfarm’s investment advice looks after your retirement, so you can invest time in today.

Your capital is at risk. Investments can go down as well as up and you may get back less than you originally invested. Read more on understanding the risks

What is the Moneyfarm Pension?

The Moneyfarm Pension helps you grow your money, to give you the income you deserve in retirement.

Our cost-efficient investment advice, matches you to a pension portfolio that reflects your retirement goals, time horizon and risk appetite.

The Moneyfarm Pension is a fully managed self-invested personal pension (SIPP). This means your Moneyfarm Pension is built and continually managed by our investment team to ensure you stay on track to get the retirement lifestyle you’ve been working towards.

Moneyfarm removes the hassle and does the hard work for you. Not because you can’t, but because we understand you want to invest your time elsewhere.

Why choose a Moneyfarm Pension?

Investment advice

Moneyfarm’s cost-efficient investment advice matches you to a pension that’s built to reflect your investor profile and time horizon

Fully managed

Our investment team build and manage your portfolio, regularly rebalancing your pension to manage risk and maximise returns

Hassle-free transfer

Bring together old pensions for free. Managing your savings in one place makes it easier to keep on track with your objectives

Ongoing suitability

Our technology ensures you’re always invested in a suitable portfolio. Let us know when your situation changes, and your portfolio will change with you

Target date

We adjust your pension investments as you get older and automatically de-risk your portfolio as you get closer to retirement

Income drawdown

Flexible access to your pension when you reach retirement. Start withdrawing from your pension without any additional fees

Tax benefits to the Moneyfarm Pension

Start saving into your Moneyfarm Pension to enjoy the generous tax benefits. You can claim tax relief on your pension contributions depending on how much tax you pay.

When you invest with Moneyfarm, you’ll automatically get your 20% tax relief – no waiting for HMRC. This equates to a 25% boost to your pension contributions.

If you’re a higher or additional rate taxpayer you’re entitled to more. Fill in your tax return form to reclaim your relief. You’ll receive your additional relief as either a rebate at the end of the tax year, a reduction in your tax liability, or HMRC will change your tax code.

Start a pension
Basic rate
Tax relief 20%
To get £10,000 in your pension add £8,000
Auto relief or claim to HMRC? Auto
Higher rate
Tax relief 40%
To get £10,000 in your pension add £6,000
Auto relief or claim to HMRC? HMRC
Additional rate
Tax relief 45%
To get £10,000 in your pension add £5,500
Auto relief or claim to HMRC? HMRC

How it works

Discover your investor profile

Answer questions about your financial knowledge, financial situation and attitude to risk to discover your investor profile

Match with the right portfolio

We’ll recommend the right pension portfolio for you to meet your retirement goals, built and managed by our team of experts

Add funds to your pension

Add money to your pension by setting up a direct debit and investing a lump-sum. You can even transfer old pensions for free

Receive ongoing investment advice

You’ll always invested in a suitable portfolio. If your financial situation changes, let us know, because your pension might need to adjust too

How much will my Moneyfarm Pension cost?

We keep costs simple and only charge you one fee at an account level; our management fee. The total cost of investing includes two further costs, the transaction cost (market spread) and underlying fund fee.

Whether you invest £10,000 or £1 million across your pension, ISA, or GIA, 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.

Learn more about our fees

Slide to see how much our Pension would cost

What our customers think

Transfer your pension to Moneyfarm

Combining your old pots could make your pensions easier to manage and help you save on fees. With Moneyfarm transferring your pension is easy, free and efficient.

Just fill out the required information on the transfer form and we’ll take it from there. We’ll talk to your existing provider and move your pensions over to your Moneyfarm account. We’ll even cover any transfer-out charges your existing provider might bill you. This process should take three-four weeks, although this depends on your provider.

Transfer a Pension

Pension calculator

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.

Calculate your pension

We’re here for you

Our Investment Consultants are here to talk you through every part of your investment journey – whether you have questions about your account, your performance or the the decision-making behind the latest rebalancing.

Technology makes our investment advice cost-efficient; our Investment Consultants make our service invaluable.

0800 433 4574

hello@moneyfarm.com

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 investments in your portfolio.

The Moneyfarm Pension is a target date product, which means we automatically rebalance your portfolio to keep you on track to achieve your financial goals as you get closer to retirement.

Once you invest in your Moneyfarm Pension, you can invest time in the things that matter, knowing we’ve got your best interests at heart.

How to use your pension

Investors have more flexibility, transparency and control over their pension than ever before.

It’s important you understand all the options available to you to make the right decisions with your retirement savings. Our Investment Consultants are on hand to talk through any questions you might have.

Once you reach the age of 55 you can take 25% of your pension savings as a tax free lump sum. If you choose to take this, you can then:

  • Buy a flexible income drawdown
  • Buy an annuity
  • Withdraw it and keep it as cash
  • Do a mixture of the three

Pensions Frequently Asked Questions

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. Visit our Pension Calculator and Decodes blog to find out what this means for you.

What is the annual pension allowance?

There’s a cap on how much you can contribute to your pension to receive tax relief each year. In the 2019/20 tax year, this limit is £40,000 or your annual salary – whichever is lower. The government applies a tax charge, called the annual allowance tax charge, if the total contributions to your pension savings for a given tax year exceed your annual allowance. Your ‘total contributions’ includes all your personal contributions, any income tax relief from the government and contributions paid by your employer. The charge for exceeding your annual allowance is set at your marginal rate of income tax. This acts as if the excess amount were added to your other earnings. Before you start withdrawing from your pension savings, you can usually carry forward up to three years of unused allowance. This increases your available allowance. Once you start taking income benefits from your pension savings, you will normally be subject to what’s called the Money Purchase Annual Allowance restricting the level of your contributions to “money purchase” pensions, including your Moneyfarm Pension. If you are unsure of your annual allowance we recommend you seek professional advice.

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 consultant 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 consultant 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, so you need at least £500 to open a portfolio but we recommend you have at least around £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.

Start a pension

Cost-efficient investment advice and fully-managed portfolios to help you reach your goals, with an investment consultant at the end of the phone.