Digital wealth manager Moneyfarm, announced the launch of its Self-Invested Personal Pension (SIPP) with the benefit of easy transfers, simplicity and low-fees.
The new pension has been built to simplify the transfer and consolidation process, and empower customers to make the right decisions with their wealth to ensure financial security in retirement. The Moneyfarm Pension, which is available to new and existing customers, provides consolidation of existing investments with a quick, easy and managed transfer process. With Moneyfarm research showing that a third of Brits feel totally unprepared for the future, nearly half of the population claim that everyday responsibilities are the biggest barrier to attaining their long-term goals.
Consolidating your pension into one place is a powerful tool to help consumers understand what they have. Brits can put the right plan in place to close the gap between what they want in retirement and what they’re on track to receive. With the average Briton working around 11 jobs in their career, it can be difficult keeping on top of pension savings.
World-class tech engineering in the product brings a more personalised pension solution to individuals, to help reach their retirement goals. The target date functionality means customers set a self-determined retirement date and as it approaches, the portfolio asset allocation will adjust to ensure suitability right up until investors want to draw from their pension.
CEO and Co-Founder of Moneyfarm, Giovanni Daprà says, “Investing in a personal pension ensures greater security for an individual or family’s future. By asking customers to set a date for their retirement, we can provide more personalised automated financial advice through our digital platform and encourage future planning and money mindfulness as part of everyday life. Ultimately, individuals can now take charge of their own retirement, which is simple to setup, monitor and manage.”
Fees are also simple. Rather than an annual pension charge, fees come out at an account level and look at the total amount invested across all Moneyfarm portfolios. The pension can sit alongside an existing Moneyfarm Stocks and Shares ISA and General Investment Account (GIA) and can be managed from desktop or mobile. If a customer invests through a pension, ISA and GIA, they may be rewarded by paying less in management fees.
Unlike some pension products, flexi-access drawdown is a standard feature of the new pension product and will become automated soon after launch. This will provide investors with the freedom to manage their retirement income according to their needs.
To avoid a delay in customers receiving tax relief from HMRC, Moneyfarm takes on the up-front cost of basic rate income tax relief for its investors. As a result, investors can enjoy the added benefit of additional compound returns. Self-employed investors can contribute to their pension from their pre-tax income by setting up employer contributions for an increased long-term benefit.
Unlike other SIPPs, human expertise comes as standard. Moneyfarm’s FCA-regulated experts build and manage investment portfolios to reflect a customer’s investor profile, and specialist investment consultants are always available to explain investment products and portfolio performance.
“With over half of Britons kept awake at night thinking about future plans, pensions can often seem like a bit of a black hole, where you don’t really know what’s happening with your money until you hit retirement.” adds Giovanni. “At Moneyfarm, we’re passionate about decoding the investment industry. Customers will be able to see exactly where their money is invested and how it’s performing all at the touch of a button, for maximum benefit when the time comes.”
Moneyfarm is a digital wealth manager helping people make smart decisions with their money for the future. First launched in 2012 and headquartered in the UK, it simplifies investments and offers advice on diversified portfolios to deliver sustainable growth through a range of asset classes.
Operating through an online platform, Moneyfarm’s approach to investment combines human empathy and financial expertise with the efficiency of technology to deliver cost-effective advice and investment solutions to every user.
Regulated by the FCA, it is a fast growth company with more than 150,000 active users and is well backed having secured close to US$30 million in capital. The company is led by co-founders Paolo Galvani and Giovanni Daprà.