Pension top FAQs answered

Here are some FAQs to get you started as you build a retirement pot worth waiting for.

How much money should I have in my pension?

The Retirement Living Standards set by the Pension and Lifetime Savings Association (PLSA) say that a single person would need £31,300 a year for a moderate standard of living, and a couple would need £43,100 a year for the same living standard.1

Research by Fidelity found that saving seven times your annual income by age 68, together with the state pension, should maintain a similar standard of living in retirement as in working life.2 Check out our pension calculator in-app to get retirement ready and see if you’re on track to reach your ideal retirement pot.

 

Check out Pension Calculator

 

Here’s a pension 101 explainer from our Head of Personal Finance.

 

What are the different types of pension?

You could end up with different types of pension depending on whether you’re employed or self-employed, and the pensions available from a particular employer.

 

What is pension tax relief? 

You contribute a set amount to your pension and, to encourage you to save, the government tops up your retirement pot with the same amount you would have paid in tax on your earnings. 

How much free money the government gives you depends on how much you earn, how much tax you pay, and how much you have contributed to your pension in the past three years. 

There is a cap on it, though. If you’re paying income tax in this tax year – you can usually get pension tax relief on contributions up to £60,000 (your allowance).

Tax treatment depends on individual circumstances and is subject to change.

 

Can I transfer Pensions? 

Yes you can! It’s really easy – we just need a few details and you can do it all in-app. Or, you can get help with our Pension Provider Search tool and our team of Pension Detectives will do the leg work for you.

Check T&Cs for transfer eligibility. Consider the product charges and benefits, and whether the profile of the investments offered matches your needs. 

 

Request transfer

 

Where does my money go?

When you invest with a Moneybox Pension, you’ll have a few options of where you put your money. The main thing to keep in mind is that it will be invested in funds. 

Funds let you invest in a group of different financial assets like stocks and bonds without having to buy them directly. Here’s a breakdown of the different funds we offer for your pension. 

You can also customise your pension allocations if you’d like to take greater control over your money. This lets you tailor your pension investments across the Fidelity Index World, HSBC Islamic Global Equity Index, and Old Mutual MSCI World ESG Index funds.

If you want more retirement content, check out our Pension Academy. It’s a step-by-step guide to help build your confidence and set you up for success as you build a retirement pot worth waiting for. 

 

Go to Pension Academy

 

As with all investing, the value of your pension can go up and down, and you may get back less than you invest

1 PLSA Retirement Living Standards

2 Fidelity International’s Retirement Savings Guidelines white paper. September 2020