Moneyfarm
Personal Pension

Match with a portfolio that’s built and managed for your investor
profile and let Moneyfarm help you prepare for your future, 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?

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?

Hassle-free transfer

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

Target date

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

Income drawdown

Flexible access to your pension when you reach retirement. You can benefit from flexi-access drawdown without any additional fees

Investment advice

We match you with a portfolio that’s specifically built for your goals and suitable for your investor profile

Ongoing advice

We make sure that your pension remains on track with your goals and your risk profile as you age

Systematic rebalancing

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.

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

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.

Learn more about our fees

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

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

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.

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 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?

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 2018/19 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 complete this form and email it to support@moneyfarm.com

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 £1,500 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.

Will you help pay my exit fees?

When you move your investments (minimum of £5,000) to us, we’ll reimburse any exit fees that your former providers charge you, up to a maximum of £500 per customer. Of course, you need to decide whether these fees will impact the future value of your pension. To claim this you need to download and complete the short Exit Fees Reimbursement Form within three months of requesting your transfer. Send the form to us at support@moneyfarm.com Please remember, you still need to complete the transfer application process online and qualify for the reimbursement.

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 £1.03 million in the 2018/19 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

It takes just ten minutes to open a Moneyfarm pension. Invest in your future self and reap the rewards.