7 results found, based on your search criteria

Hargreaves Lansdown
Hargreaves Lansdown

Minimum Investments

£100 & £25 per month

Transfers In-Specie

Contributions and Transfers

Invest In

Shares, Bonds, Funds, PIBs and more

Managed By

Online, Phone and App
 
            

Expert research, award winning app, invest in 1000s of funds from all the major fund providers with discounts available. No dealing fees apply

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

Interactive Investor
Interactive Investor

Minimum Investments

£25 per month

Transfers In-Specie

Contributions and Transfers

Invest In

Shares, Bonds, Funds, PIBs and more

Managed By

Online and App
 
            

No setup or transfer in fees, Low trading costs and no exit fees either.

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

PensionBee
PensionBee

Minimum Investments

NA

Transfers In-Specie

NA

Invest In

Funds

Managed By

Online and App
 
            

Pensionbee will do the hard graft to amalgumate all your pensions in one place and allow you to invest in a range of funds from top fund managers including BlackRock and Legal & General.

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

AJ Bell
AJ Bell

Minimum Investments

£1000 or £25 per month

Transfers In-Specie

Transfers only

Invest In

Shares, Bonds, Funds, PIBs and more

Managed By

Online and Phone
 
            

Which? recommended platform, Wide range of investment choices, expert guidance available and competitive charging structure.

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

IG Markets
IG Markets

Minimum Investments

Annual charge: £205

Transfers In-Specie

Contributions and Transfers

Invest In

Shares, FX, CFDs, ETFs and Bonds

Managed By

Online and Phone
 
            

IG offers 2 SIPPs with the opportunity to invest in 12,000 shares from the majority of the world's major exchanges. No minimum investment, but annual platform charge makes this platform appropriate for those with large pension pots.

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

SAXO
SAXO

Minimum Investments

£10,000

Transfers In-Specie

Transfers

Invest In

Shares, Funds, FX, ETFs and Bonds

Managed By

Online and Phone
 
            

SOXO offers 2 SIPPs with the opportunity to invest in 12,000 shares from the majority of the world's major exchanges.

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

Fidelity
Fidelity

Minimum Investments

£50

Transfers In-Specie

Inspecie and Transfers

Invest In

Shares, Funds anf ETFs

Managed By

Self-Select or Managed
 
            

Funds from 100+ different providers with discounts including Fidelity with award winning guidance. Fees from £45 on under £7500 or 0.35% on up to £250,000 across all your Fidelity accounts.

Your exact charges and fees will depend on your particular circumstances. Capital at risk. If in doubt, we recommend you speak with a qualified Independent Financial adviseModel.

  • SIPPs guide
  • Savings accounts guide
  • Popular SIPP FAQs
Saving into a pension tax-efficiently locks your money away for retirement - contributions are boosted by tax relief, or a refund of the tax you've paid, and there are plenty of other benefits. A workplace or personal pension supplements your basic state pension – amounting to £6,718.40 a year in the 2019/20 tax year – and any other savings you may have, to provide for a comfortable later life.
In this guide
The benefits of a pension
For almost everyone, paying into a pension makes good financial sense. Here are some key benefits:
  • Contributions are boosted by tax relief, or a refund of the tax you've paid
  • Investment returns from capital growth and dividends will be sheltered from tax
  • Your employer will pay at least 3% of your salary on top of your contributions into a workplace pension
  • You can take 25% of your pension pot tax free at retirement
  • Your marginal tax rate is likely to be significantly lower at retirement
What is the marginal tax rate?
While you’re working, income paid into a pension isn't subject to tax. That’s until you draw money from your pension as income in retirement, when you'll be taxed on this as you would have been while you were working. So you'll pay between 20% and 45%, depending how much income you draw – your marginal, or personal, tax rate.

However, as your income at retirement is likely to be lower than while you were working, you’ll pay less tax on this by comparison.
At retirement, you can also take 25% of your pension pot as a tax-free lump sum, bumping up the tax benefits of pension contributions.

The following example illustrates the savings you could make from slotting 5% of your income into a pension throughout your working life.
Example: Starting salary: £30,0000 (income growth 5% per year) | Working years: 35
At retirement with no pension

Total net income during employment: £1.4m

At retirement with a pension
Assumed pension growth 5% | Employee contribution 5% | Employer contribution 3%
Total net income during employment: £1,25m
Total pension pot at retirement: £300k
Additonal benefit versus not having a pension: £155,000 (£75,000 available in cash)

Total net income + Savings: £1.55m

N.B. This simple example assumes no major changes to taxation and that current tax thresholds will move in line with inflation. Remember tax rules can and do change, and their effect depends on your personal circumstances
How much should you put into your pension
As a general rule of thumb you should be paying half your age as a percentage of your salary when paying into a pension. The earlier you start paying into a pension the more you will benefit from what’s known as ‘compounding ’ – or earning returns on your returns. It’s impact can be powerful, and will improve chances of a financially comfortable retirement.

Here, we look at workplace pensions for employees. There are two main types:
Defined Contribution
Workplace pensions are typically Defined Contribution schemes – also known as 'money purchase' pensions. Your employer will choose the scheme, and provided you pay in the minimun required, will also contribute to it - but beyond that they have no involvement. So it’s your responsibility to ensure you’re comfortable with the investments. The amount you build up in your pension is dependent on the performance of the investments in your pension scheme. There’s no guarantee of the amount you will get at retirement.

Almost all new employees in the private sector will be automatically enrolled into a workplace pension, where your employer will contribute a minimum of 3% and you 5% of your qualifying earnings, unless you opt out of the scheme.

Your contributions will be invested on your behalf in funds, shares and bonds. You may be able to choose additional investments in addition to the scheme’s so-called ‘default fund’. Each year you’ll receive a statement, detailing how much money you have in your pension scheme.
Defined Benefit
Your employer is responsible for your pension under this type of scheme, with your retirement benefits set out by the pension scheme. So the income you receive at retirement is guaranteed, and simply depends on your income during employment, while you pay into the scheme. That’s the theory, anyway. But a large number of big corporate pension schemes have ended up woefully underfunded, leaving the company struggling to make up the shortfall.
Defined benefit schemes calculate your retirement income based on several factors.
These include:
  • Your salary, and how this is calculated – whether it’s based on average during your service, or on leaving the company, for example
  • The number of years you've been a member of the scheme
  • Pensionable earnings (how they calculate the salary, typically this will be according to your final salary or your career average salary)
  • A scheme formula (typically between 1/40 and 1/60)
Defined benefit pension schemes are still in use by large public sector organisations such as the NHS. However, they are relatively generous and have often placed too much strain on private sector businesses, where they have mostly been phased out.
How to start a pension
If you’re an employee of a large public sector organisation, you’ll probably become a member of their Defined Benefit pension scheme automatically.

If you work in the private sector, your employer will be obliged to enroll you into a workplace pension – typically, a Defined Contribution scheme - if you’re an eligible employee.
Criteria includes:
  • Your income must be over £10,000 a year
  • You much usually work in the UK
  • You are between 22 and state pension age.
Provided you are an eligible worker, your employer will have to pay 3% into your workplace pension on top of your salary, while you will have to contribute 5% of your salary too, unless you opt out or cease membership. Even if you are outside the age brackets for being an eligible worker, you can still choose to opt into the scheme. Your employer will not be obligated to pay their contribution, but they may do so, so it’s always worth asking. Employer pension contributions are effectively like a free pay rise that you’ll benefit from in retirement.
You don't have to remain in a pension scheme
You can do what’s known as ‘opt out’ of your company’s pension scheme. If you opt out within a month of being enrolled, any contributions you’ve made will be paid back to you, after tax. However, if you leave the scheme after a month this is known as ‘ceasing membership’, and any money that has been paid into your pension will remain there until you retire.
Should you opt out or cease membership?
While you don't have to remain in a pension scheme, this doesn't mean you should leave one. Unless your finances are in serious trouble, or you already have so much money there is no need for a pension, leaving a pension scheme does not make financial sense:
  • You’ll miss out on 3% more pay from your employer
  • You will have less money to afford a comfortable retirement
  • You’ll pay more tax now and almost certainly over your lifetime
Cost of pensions
You will pay charges to have a pension. These cover the cost of administering the scheme, alongside any investment fees. Charges will vary, depending on your scheme. They may include policy fees, for example, to administer the scheme, and an annual management fee, to cover investing your contributions. Ensure you know what you’re paying - as they’ll have an impact on your pension.

However, the most that workplace pension providers can charge per year is 0.75% of your fund’s value. If you’re a member of Nest, the government’s workplace pension scheme, there’s a dual charging structure: an upfront fee of 1.8% on your contribution, followed by 0.3% of your fund’s value per year.

Determining whether you'd be better off with a slightly higher upfront fee - which could be a flat cost or a percentage fee - or a higher annual management charge depends on various factors. These include:
  • Your income
  • How long you are employed
  • How long you have until retirement
If you think that your workplace pension provider is charging too much, you may wish to ask your employer if they will consider switching to a better value alternative, particularly if the company has been around for a few years and has more than 10 eligible jobholders.
Switching pensions
Keeping track and managing your pensions can be tricky - you'll most likely have paid into several different workplace pensions over your liftime.

If you have any money in Defined Benefit schemes (see above), you should always get financial advice before transferring your pension away, as you could lose out on valuable benefits. If your money is in Defined Contribution schemes, there could be exit fees that could mean it's not worth moving your money. This should be very straightforward to find out from your provider. If you wish to transfer your pension, there are a few different options.
These include:
  • Taking your pension with you when you move employment
  • Choosing to move the money into a self-invested personal pension (SIPP)
  • Combining your pensions using an onling investment platform such as PensionBee.
If you choose to move your money onto a platform, they will take the stress out of the process by consolidating your existing pensions on your behalf. So this way, all your pensions are in one place.

However, check for charges, as they may not be as competitive as you could find elsewhere.
Taking benefits
At retirement, you have plenty of options on what to do with your pension fund. You are entitled to take 25% of this as a tax-free lump sum. You may choose, for example, to leave the remainder invested and draw an income from your investments. Or you may buy an annuity – a financial product that gives you an income for life – with some of your pot; say, to provide for essential bills. At this stage, seeking professional financial advice may be wise to maximise your pension.
You are likely to pay less tax in retirement
While you’re working, income paid into a pension isn't subject to tax. That’s until you draw money from your pension as income in retirement, when you'll be taxed on this as you would have been while you were working (aside from the 25% tax-free lump sum). So you'll pay between 20% and 45%, depending how much income you draw – your marginal, or personal, tax rate.

However, as your income at retirement is likely to be lower than while you were working, you’ll pay less tax on this by comparison.

The following example illustrates the savings you could make from slotting 5% of your income into a pension throughout your working life.
Example: Starting salary: £30,0000 (income growth 5% per year) | Working years: 35
At retirement with no pension
Total net income during employment: £1.4m
At retirement with a pension
Assumed pension growth 5% | Employee contribution 5% | Employer contribution 3%
Total net income during employment: £1,25m
Total pension pot at retirement: £300k
Additonal benefit versus not having a pension: £155,000 (£75,000 available in cash)
Total net income + Savings: £1.55m
N.B. This simple example assumes no major changes to taxation and that current tax thresholds will move in line with inflation. Remember tax rules can and do change, and their effect depends on your personal circumstances
A savings account enables you to earn interest on your money – and up to £85,000 slotted away with a UK-regulated bank or building society is protected by the Financial Services Compensation Scheme (FSCS).
But however much you can save, it’s worth making your money work as hard as possible. Taking a little time to compare rates could boost the amount of interest you earn, beating inflation, or the rising cost of living.

Bear in mind that the personal savings allowance (PSA) means you can now earn £1,000 interest per year without paying tax on your savings– or £500 if you’re a higher rate taxpayer. So the vast majority of savers are no longer paying tax on their savings.

There are several factors to take into consideration when comparing rates.
In this guide
When you need the money
The best rates are typically available on fixed-rate accounts – which means you’ll need to lock your money away. But these won’t suit if you’re likely to need the cash over the short-term. Withdrawing your cash during the fixed-rate period will mean you incur a penalty – typically, loss of interest. In some cases penalties can be hefty. For example, if you lock money away in a seven-year Cash ISA, the penalty could amount to one year's worth of interest. So consider your options and search for an account that’ll work for you.
What you think will happen to rates
If you lock your money away, and the government raises interest rates, you could miss out. Conversely, if interest rates fall, you’d benefit from saving in a fixed-rate account. So take into consideration what you think will happen to interest rates.

The longer your money is locked away, the bigger the risk.
How proactive you are willing to be
Unfortunately, there are plenty of savings accounts paying a pitiful £1 on every £1,000 of savings. But comparing and switching to a better rate needn’t take more than a few minutes. You can easily open accounts online, but you may still feel you don’t have the time. Alternatively, if you’ve plenty to put away you could place a chunk in an easy access account, some in a fixed-rate account that earns more interest, and slot a portion into a regular saver – these accounts often pay a decent rate.

If you’re switching your current account There are plenty of incentives to switch current accounts – from £175 cash, to cashback and interest-free overdrafts. Also, if you’ve got a smaller amount saved – say, several thousand pounds - some current accounts pay decent rates of interest on your cash. So it’s worth checking these out.

Current account switching game:
Use the new switching service to move accounts – which takes around seven days. Contact your new account provider, and ask for a form. However, if you’re likely to apply for a large amount of credit within the next few years, you may want to stay with your current provider. Bank account stability is a factor in lending decisions, and switching accounts may impact your credit score and the rate you’re offered. You could switch several times to maximise potential incentives, although beware of the impact on your credit record. For example:
  • Switch your current account to HSBC advance £175;
  • Once the switch is complete and the money paid switch to First Direct, to benefit from £100 incentive
Total from incentives alone = £275
Maximising savings on £10,000
  • £9,000 into Marcus (Easy Access at 1.45% AER
  • Put £500 into Coventry Regular Saver paying 2.5% AER (no withdrawal restrictions)
  • Put £500 into Principality Regular Saver paying 2% each month
To maximise the interest you earn, you could withdraw £1,000 from your savings with Marcus each month, saving £500 into the Coventry Regular Saver and £500 into the Principality one-year bond. Over a year, this would amount to around £190 in interest, before tax. If you’d saved the entire sum in Marcus for the year, you’d earn £135, or £55 less.
Different types of account
Instant access savings
Instant access accounts allow you to withdraw your money at any time without any restrictions. You can make as many withdrawals as you want, without penalty.
Easy access savings
Your money is easily accessible, but you may face a short delay before you can take out your money. You may also be restricted in the number of withdrawals you can make, without penalty.
Notice accounts
Some accounts will offer higher rates of interest but only pay back the money after a notice period. Like easy access accounts, notice accounts may come with restrictions on the number of withdrawals you can make without penalties being applied.
Fixed Rate Bonds
If you put your money into a fixed-rate bond you will not usually be able to withdraw the money until the end of the fixed-rate period.
Cash ISAs
You can save up to £20,000 in the 2019/20 tax year without being subject to income tax on any interest you earn in a cash Individual Savings Account (ISA). The allowance limit is across all ISAs, so if you have a cash ISA and an investment ISA, the total placed into them may not exceed £20,000. The interest rates on Cash ISAs are not as high as on easy access accounts. So it typically onlly makes sense to save into an ISA only if you’re likely to earn more interest than your tax-free Personal Savings Allowance - and that means having more than around £60,000 in savings.

Other considerations
Over the long term, investment returns have typically been higher than those offered from standard savings accounts. You may earn returns of 5% a year on investments, but this is far from guaranteed, and you can lose money as well as gain money. Saving in the stock market should only be for when you’ve established a sufficient cash pot for emergencies – and with a long-term focus, such as retirement.

A pension is a long-term saving scheme which you can usually access from age 55. You contributions are boosted by tax relief, or a refund of the tax you've paid, and there are plenty of other benefits.

Typically, you cannot withdraw any money from your pension until you reach at least age 55. The main exception is if you have a terminal illness where doctors have determined you will not live for more than 12 months. In this case, you can draw your entire pension as a one-off lump sum.

Essentially, the higher the tax rate you pay, the bigger the benefit of a pension, as you receive tax relief at your personal rate. So if you pay £100 into your pension, the cost to you is only £80 as a basic-rate taxpayer, or £60 as a higher-rate taxpayer.
Assuming there hasn’t been a fundamental change to the tax system and your only income in retirement is your pension, you may also pay less tax overall. That's because your overall income will be lower.

The full state pension - based on your National Insurance Contribution (NIC) record - currently pays out £129.20 a week, or £6,718.40 per year and will rise rise to approximately £160 per week by 2040. For most people, this will not be enough for a comfortable retirement.

Most commentators agree that a good rule of thumb is that you should pay in approximately half your age as a percentage from when you start paying into your pension.
In other words, if you start paying into a pension at 20, you should pay an average of 10% of your salary into your pension throughout your working life, 15% if you start at 30, or 20% if you start at 40.

A workplace pension is provided by your employer as a way of saving towards retirement. Your employer will automatically enrol you into its scheme, provided you:
At least age 22
Not yet at state pension age
Earn in excess of £10,000
Normally work in the UK under a contract of employment
If you meet these criteria, you will have a 6 week window in which you can choose to opt out of the pension scheme, and any contributions paid will be refunded. After that point, you can choose to cease membership, but any contributions will not be returned.

Provided you meet the auto enrolment rules, the minimum that should be paid into your pension is 8% of qualifying earnings. Of this, your employer must pay in a minimum of 3%, with any difference being made up by you.

Final Salary or Defined Benefit pension schemes have mostly been withdrawn in the private sector as they have been consistently underfunded and placed a heavy, ongoing burden on businesses.
Defined Benefit schemes have their own formula which depends on a number of factors. They pay out a predetermined percentage of income to their members at retirement, based on the number of years served, an accrual rate and a percentage of income earned each year.

A Self Invested Pension Plan (SIPP) is a specific type of do-it-yourself pension. You can choose from a wide range of asset classes depending on which you think will provide greatest long-term growth. SIPPs may also be provided on an advised basis, although this will be more expensive. decisions.

Over time, the cost of pension administration has fallen. Workplace pensions are restricted to charging no more than 0.75% of the fund as an annual management charge. Older stakeholder schemes are restricted to charging no more than 1% of the fund value. Older personal pensions may have higher charges.

If you are in a final salary scheme, you should always get advice before thinking about moving your pension. You may lose valuable benefits. However, if you have money in a personal pension or a workplace defined contribution (or 'money purchase') scheme, whether you move depends on your preference.
There are a variety of factors to consider, such as performance, where your pension will be invested, costs involved and ease of administration.

Yes, you can choose to move your pension from one scheme when you want to. But check for any exit charges.

After retirement, you can buy an annuity (guaranteed income for the rest of your life) or drawdown an income from your pension investments over time. Or you can choose a combination of approaches to producing retirement income. Whichever approach you choose, you can take 25% of your pension as a tax-free lump sum at retirement.
If you're unsure what will be the best option for you, we recommend you get independent financial advice from a qualified adviser.

An annuity is a financial product that you can buy at retirement with all or a portion of your pension pot. It will guarantee to pay out a specified amount of income per year for the rest of your life. The older you are when you buy an annuity, the less it will cost you to achieve the same income. Similarly, if you suffer poor health and have a limited life expectancy, the cost will be lower.

Drawdown is the term used to describe using your pension investments to draw payments for yourself.
Unlike an annuity that is guaranteed to pay out a certain level of income until your death, drawdown income can run out if you miscalculate how long you'll live or the markets do not perform as well as you'd hoped.
If you're unsure what will be the best option for you, we recommend that you seek regulated independent financial advice.

There are a variety of ways to fund retirement, so possibly, yes. If you've paid off your mortgage or the majority of a mortgage, renting out your home or doing equity release could also be a way of paying for retirement. But, ideally, it's wise not to rely on a single asset for retirement. If you're unsure how to fund retirement, we recommend that you seek independent financial advice.

At retirement, you can withdraw 25% of your total pension pot tax free. However, it may be wise to take financial advice before doing so. Remember, once money is withdrawn from your pension, you do not get the benefit of tax free investment growth and you want to ensure you manage your retirement income effectively.

No, you will not pay NI on your pension income.

Yes, your income tax will be exactly the same as if your income was from an employer. So it will be subject to the the relevant tax rate, and have a personal allowance.

About everything financial

We are everything financial and the website you are on is a free, online comparison service. We exist to make finding a financial product or financial advice easier.

Data you can Trust

Making a fair comparison only works with accurate trustworthy data. We have partnered with financial data experts Defaqto who have a team dedicated to ensuring every data point you see is accurate.

FCA Regulated

Everything Financial is regulated and authorised by the Financial Conduct Authority. This website is a free comparison site that has been designed to help you make informed decisions about financial products.

Financial Experts

The Senior Management team is comprised of respected Industry experts who both understand financial services, but are also committed to helping you choose the best value products in the market for you.
Go to the top