The Moneybox Personal Pension puts you in control of your financial future. You’ll be able to bring together your old pension pots, contribute to your pension and see exactly how much money you’ve got and where it’s invested – all from the Moneybox app.
Why does Moneybox offer a pension?
Many people have thousands of pounds sitting in old pension pots they barely know anything about.
With every new job you get a new pension. With the average person now having 11 jobs over the course of their career, these old pensions can become really difficult to keep track of. Not to mention paying a staggering £38,000 in total fees to pension providers by the age of 65.
This lack of knowledge can be traced right back to the pensions industry. Pension companies barely engage with their customers and when they do, they send snail mail letters to old addresses, written in financial jargon that hardly anyone understands. Even the basics like checking your account balance and seeing where your money’s invested are made really hard.
How can Moneybox help?
We’ve built a pension that lives on your phone and is designed for the way you live today.
You can easily bring together all your old, stranded pension pots into one place and check your account balance anytime, anywhere. You can also open a Personal Pension without transferring and start contributing right away. You can contribute to your Personal Pension in the same way as other Moneybox accounts, plus you’ll automatically receive 25% tax relief from the government on contributions. Your Moneybox pension will sit alongside your other savings and investments in the app, putting you in control of your financial future.
We’ve helped thousands of customers find and consolidate millions of pound from old pension pots, each worth an average of £10,000.
How to consolidate your old pension pots
To transfer an old pension we need two pieces of information – the name of your old pension provider and your old pension policy number. We know it can be tricky to keep track of old pensions and who they are held with, so if you don’t know these details, never fear – we can help track them down!
With our in-app Pension Provider Search Tool, all you need to do is share the name of your old employer and the years you worked there and you’ll see your search results of your pension provider – instantly! We have one of the largest databases in the UK with over 20,000 pension providers. In the case we cannot immediately provide the details of your old provider, our team of Pension Detectives will get to work searching for your pension providers and within a few working days, we’ll be in touch with your search results.
Once the above details are confirmed, we can kick off the transfer. For most providers this can be an end to end electronic process taking on average 2-3 weeks. If we do need a signature from you, our team will send a form out to you the next day. Unfortunately, some providers only operate via manual systems, meaning all correspondence must be completed via paper-based mail. This can slow things down but our team is committed to doing everything they can to ensure a speedy transfer process from the Moneybox side. You can also track the progress of your transfer in the Moneybox app.
How can I contribute?
You’ll be able to contribute to your Moneybox Personal Pension in the same way as other Moneybox accounts by setting up a weekly payment, contribution via a one-off deposit or top up your pension with a payday boost! Plus, you can also contribute via round ups and invest the spare change from your everyday purchases.
What can I invest in?
The Moneybox Personal Pension gives you the choice of three investment options:
- Fidelity Index World Fund (this is the same equities fund available in the app for a Moneybox Stocks & Shares ISA, GIA, or Lifetime ISA) – This fund diversifies your investments into more than 1,600 companies across 23 countries and aims for long-term growth of your capital.
- Old Mutual MSCI World ESG Index Fund – This also invests in a range of global companies but considers environmental, social and governance factors – such as how companies respond to climate change, treat their workers and manage their supply chains.
- BlackRock LifePath Funds – A ‘Lifestyle’ fund unique to pensions, which changes the balance of investments as you get closer to your retirement date. When you select this fund you’ll be asked to select the one with a target date that matches when you think you will retire. If you’re unsure of this, we recommend that you speak with an independent advisor.
You will be able to change your investment fund at any time in the Moneybox app.
What are the fees?
For the first £100,000 in your Moneybox Personal Pension, the account fee is 0.45% per year, billed monthly. On balances over £100,000 this comes down to just 0.15%. This fee is calculated daily and charged at the end of each month from the value of your investments.
You’ll also be charged the fund provider fee ranging from 0.13%-0.25%.
- Fidelity Index World Fund: 0.13%
- Old Mutual MSCI World ESG Index Fund: 0.25%
- Blackrock LifePath Fund: 0.21%
You should carefully compare the fees charged on any old pensions with other pensions available.
Dedicated Pension Transfers & Pension Detectives Team
Our dedicated pensions team are available 9am – 5.30pm Monday to Friday. We recommend getting in touch with our team via the in-app chat – they are super responsive! Alternatively, you can email email@example.com.
Top Pension FAQs
Can I move any type of pension to Moneybox?
We’re not able to accept every type of pension, unfortunately. We can’t accept a pension you are currently contributing to – we can only accept old pensions. If your old pension is a ‘defined benefit’ scheme or has any special benefits (for example a greater than 25% tax free drawdown amount), we wouldn’t be able to accept this.
If your pension is from another country, it’s likely this also can’t be transferred. However, we can check for you to be sure. Drop the team a message and they’ll do some investigating.
Can my employer pay into my Moneybox pension?
Unfortunately not. We’re only able to transfer old pensions that are no longer being contributed to by your employer.
How much money should I have in my pension?
Fidelity estimates that saving 7x (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. So, for someone on a £50,000 salary at retirement, that would mean a final pot of around £350,000 in today’s money.
How much should I expect to pay in fees?
Fees are important because they reduce the performance of your pension, and over the long term even small differences in fees can have a big impact on money you end up with. The funds used for auto-enrolment can charge at most 0.75% annually.
You should carefully compare the fees charged on any old pensions with other pensions available – where cheaper options are available, you may want to switch.
How does drawdown work?
The Moneybox Pension is only currently available as a service to accumulate and view your old pensions and so doesn’t offer a drawdown service. If you become eligible to make drawdown payments on your pension whilst it is held with Moneybox, you will need to first transfer your pension to another provider. We’ll make sure this is as easy and smooth as possible!
Should I consider a personal pension or a Lifetime ISA?
Pensions and Lifetime ISAs can both be used to save for retirement but have important differences, including when you pay income tax.
Your contributions into a pension aren’t taxed, but you pay tax on the money you withdraw from it during retirement. A Lifetime ISA is the other way around: you contribute money you’ve already paid tax on, but eligible withdrawals are tax-free.
For most people, it makes sense to pay into a pension rather than a Lifetime ISA, but this depends on tax rates or the age when you want to access your investments. A Lifetime ISA could be relevant if you’re self-employed, earning less than £10,000 from a single employer, not working, or if you expect to pay a higher tax rate in retirement than you do in work – this will depend on your individual circumstances so you’ll need to assess the benefits of a pension or Lifetime ISA or seek independent financial advice.
More information on Lifetime ISAs.
It’s important to know
You should consider the charges and benefits before transferring your pension to Moneybox, and whether the risk and reward profile of the investments offered matches your needs.
As with all investing, the value of your pension can go up and down, and you may get back less than you invest.