![]() ![]() ![]() Higher-rate taxpayers: for every 60p you pay into your pension, you get a bonus 40pįor more on this, read our pensions guide.Basic-rate taxpayers: for every 80p you save into a pension, you get a bonus of 20p.We outline the pros and cons of combining your pensions.Īlso remember: pensions can be the best way to save for retirement because they offer generous tax relief: If you have lots of workplace pension pots, you could merge them into one of these ready-made offerings. You can also add lump sums to your pension pots as and when you want. They are ideal for people who don’t know much about investing, but who want to start saving for the long term to build up a decent retirement income. How much you want to save into your pension pot each month.The level of risk you are willing to take (you usually get a choice between cautious, balanced and adventurous).In most cases, all you have to do is choose: It only takes a couple of minutes to complete.įrequently Asked Questions What is a ready-made personal pension?Ī ready-made personal pension is one of the simplest ways of saving for retirement. To help you find out if you’re on track with your retirement savings, we have created a free tool below. If you have more than one pension pot you can take our ‘Should I consolidate my pensions?‘ quiz. If a pension gets a top five-star rating, it means it has low ongoing costs as well as no sneaky additional one-off charges. The rest of the score is based on whether the pensions have any additional charges, such as transferring to a competitor or closing the account. These scenarios account for 70% of the score. To get a top rating, a pension scheme must have lower than average costs in both year one and beyond. The fund management and transaction fees are averaged across the different ready-made portfolio options available. To work out the product ratings, the annual cost of investing £100,000 pension savings in year one (taking into account any set-up and dealing costs) is calculated, and then the cost in year two and beyond. It also looks at customer service in a separate set of ratings, and awards gold, silver and bronze for those that score highly. The company gathers data on all the private pension pots in the market to help you understand which ones offer the lowest costs. Our ready-made personal pensions ratings are compiled by the independent research agency Fairer Finance. Its app scores 4.7 stars in the Apple Store and 4.1 stars in Google Play. There are also no charges for drawdown unless you withdraw your whole pot within 12 months.Īnother upside of PensionBee is its app, which allows you to manage your pension on the go. If you have savings of more than £100,000 then the fee is halved. It offers specific funds for investing in shariah or fossil fuel-free stocks.Ĭharges range between 0.50% and 0.95% depending on your chosen plan. 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 4.5 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. ![]()
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