![]() Why we rate it: PensionBee aggregates all your pensions into a single pot and gives you the option to invest into one of their seven funds. Its app scores 4.8 stars in the Apple Store and 4.4 stars in Google Play. Average fund management charges, including transaction costs, are an extra 0.24% on top of the platform fee. The fixed allocation portfolios charge annual platform fees of 0.45%, dropping to 0.25% over £100,000. However, this drops to a more reasonable 0.35% above £100,000. Nutmeg’s platform fee of 0.75% for the actively managed and socially responsible portfolios is fairly expensive for people with less than £100,000 to invest. By contrast, its lower-cost fixed allocation products do not include active management but are rebalanced annually. Its socially responsible and fully managed portfolios are invested in a range of exchange-traded funds but are actively managed. Nutmeg also offers a choice of ten different risk levels within each of these product groups to pick from for your financial future and security. – Smart Alpha, powered by JP Morgan Asset Management It offers four different types of ready-made portfolio: Why we rate it: Nutmeg* was one of the UK’s first online ready-made investment platform choices. Its app scores 4.5 stars in the Apple Store and 4.3 stars in Google Play. There are five risk strategies to choose your own pension from, and the fund management costs are just 0.20% a year.Īs you’d expect with such low-cost portfolios, your money will mostly be invested in tracker funds that mimic the performance of a stock market, but there will also be exposure to some actively managed Fidelity funds. As the name suggests, its Cost Focus portfolios are its most economical ready-made investments for SIPPs. Whichever portfolio you go for, Fidelity charges the 0.35% platform fee, tapering to nothing when more than £1 million is invested. You will need to set up a self-invested personal pension SIPP to invest in Fidelity’s range of ready-made portfolios, so you can consider this pension funds choice if you are looking for a low-cost SIPP.īut rather than choosing your own pension investment, you can simply use Fidelity’s PathFinder tool to select a ready-made portfolio that matches your appetite for risk – good for those who’ve just started saving. So, if you’re looking for a reasonably priced personal pension pot from a well-established provider, it’s got one of the best products on the market. It scores four stars out of five for its pension plans. Why we rate it: Fidelity* is one of the largest investment platforms in the UK. Its app scores 4.5 stars in the Apple Store and 4.3 stars on Google Play. You can also explore what the platform offers before signing up. The investment company has no hidden costs, including no exit fees if you switch provider. Investment costs for its ethical portfolio average at 0.7%, so is a more expensive option compared to the original one. Wealthify also gives you the choice to invest ethically, avoiding harmful stocks like weapons, tobacco, and gambling. The investments are reviewed regularly to make sure they’re in line with the risk level you have chosen. You can invest from £50 and there are five different risk levels to choose from. Wealthify won a gold ribbon for customer experience in our spring ratings. ![]() Make sure you read the terms and conditions. The investment fees do apply, which can average at 0.16%. This offer is only available to new customers and means you don’t have to pay the management fee of 0.6%. However, she would not have that pot of tax-free money to draw upon when she wants.Why we rate it: Wealthify is offering a deal to Times Money Mentor readers who open a pension: it will waive its management fees for 12 months. Sign up using this link*. Just £13,500 would count towards her income, of which £930 would be liable for tax. Now, if she chose to earn 25% on each of her withdrawals her tax liability would look different. Over a year her withdrawals will amount to £18,000, of which, assuming she has no other taxable income, £5,430 will be taxed. If she wants to withdraw £1,500 a month from this pot the entire amount will contribute towards her taxable income. She can withdraw £62,500 of this tax-free in a lump sum payment, leaving her with £187,500 liable for income tax. One of Sandra’s pension pots stands at £250,000. If you decide to take your tax-free amount as a single lump-sum, all of your future withdrawals will count towards your income. ![]() The decision you make here could affect your tax liability in the future. Either you can withdraw a quarter of your pension pot as a one-off, tax-free, lump sum or you can keep 25% of each of your withdrawals tax-free. Since up to 25% of your pension can be withdrawn tax-free, you’ll have two options. A pension drawdown is only available to those aged 55 or older, and in 2028 this will increase to 57.
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