Seven reasons why you should choose our SIPP

Opening a Self-Invested Personal Pension (SIPP) isn’t just about setting aside money; it’s about taking control and actively shaping your financial future for when the work days end. 

A SIPP gives you the flexibility to design your retirement on your own terms, with the freedom to adapt as your needs and goals change. But, as with any important decision, the right support makes all the difference.

At Moneyfarm, we move away from generic solutions. Our goal is to help you navigate the complexities of pension planning with simplicity, clarity, and confidence. 

Here’s why our pension could be the key to securing the retirement you’ve worked hard for.

1. Close the retirement income gap 

The retirement income gap is a growing concern – that’s the difference between the amount people require for a comfortable retirement and what their current pension savings can actually provide. In the UK, retirement living standards range from £14,400 for a basic lifestyle to £43,100 for a comfortable one. Unfortunately, many individuals approaching retirement find themselves far below these benchmarks. A pension pot of £100,000, for example, typically generates just £5,000 to £7,000 annually – which, even when combined with the State Pension, may only cover basic living costs. To achieve a comfortable lifestyle, it’s often essential to boost pension savings well before retirement.

We’re here to help you address this gap by providing a tailored, tax-efficient SIPP that maximises your savings and sets you on a path towards a more fulfilling retirement. 

2. Consolidate your pensions in one place – free of charge

If your pension savings are scattered across different providers, you’re not alone—and we’re here to help. With us, you can consolidate all your pensions into a single account, if this is the right thing to do, making it easier to track your progress and manage your retirement savings. Our free pension transfer service ensures a seamless process, so you’ll only have one platform to rely on.

In addition, our Find, Check & Transfer service means we’ll do the heavy lifting for you. We’ll track down any lost pensions from previous jobs, check each one, and ensure they’re seamlessly transferred into your Moneyfarm plan. With everything in one place, retirement planning becomes streamlined, efficient, and worry-free. Plus, with just one point of contact for all your questions, we make it easy to feel confident and connected with your retirement goals.

3. Tax-efficient savings – keep more of what you earn

Saving for retirement should feel rewarding, and a Moneyfarm SIPP allows you to maximise your contributions through valuable tax relief, so more of what you save actually goes towards your retirement fund – even if you’re self-employed. 

Your contributions are tax-deductible at your marginal tax rate, making it a tax-efficient way to build your pension. Also, for every 80p you contribute, the government tops it up to £1, adding 25% directly into your pension pot. 

Higher and additional-rate taxpayers can benefit even further by claiming additional tax relief on self-assessment tax returns, potentially securing up to 45% tax relief on contributions.

Of course, there are some rules and limits. For example, the UK government sets an annual allowance of £60,000 on tax-deductible contributions. For those who may have exceeded their annual allowance, the carry-forward rule allows you to use any unused allowances from the past three years, boosting your contributions up to £180,000 if eligible.

Ultimately, a Moneyfarm SIPP not only helps you save more but also lets you keep more of your hard-earned money, thanks to its tax-efficient structure – a smart way to save for the future while reducing today’s tax burden.

4. Access your savings, tax-free, at 55

With our SIPP, when you reach 55, you could have the option to withdraw up to 25% of your pension savings as a tax-free lump sum, completely free of charge. 

This early access provides flexibility and control, allowing you to reinvest, fulfil lifelong dreams, or take a well-deserved break. Plus, with pension drawdown, you can access your funds as needed—whether as lump sums, a steady income, or a mix of both—while keeping the remaining pension pot invested to continue growing over time. 

This flexibility lets you design your retirement income in a way that suits your lifestyle and goals. (Please note: from April 6, 2028, this option will be available from age 57.)

5. Different investment approaches for your unique style

At Moneyfarm, we recognise that every investor has their own style and preferences. For those who want an actively managed portfolio, our experts consistently optimise and rebalance your investments using cost-efficient ETFs, adapting to market changes and aligning with your goals. Prefer a steady, passive approach? Our fixed allocation portfolios provide global diversification with the same cost-effective ETFs but a hands-off management style, allowing you to invest simply and affordably.

How fixed allocation portfolios differ from actively managed portfolios in areas like diversification and correlation?

Fixed allocation portfolios are based on historical data, whereas actively managed portfolios are changed to maintain a level of exposure that our Asset Allocation team is happy with. You can learn more about our investment styles here.

6. A commitment to social responsibility with Esg investing

At Moneyfarm, we believe that investing in sustainable companies and sectors is an important long-term strategy, not only for environmental reasons but for financial ones as well. That’s why we offer all our clients a range of portfolios that allow them to invest in social responsibility companies, express a sectorial bias or choose a portfolio that’s tailored to their risk tolerance. 

For those who want their investments to make a positive impact, our socially responsible (Esg) portfolios are the ideal choice. We offer a diversified range of assets that adhere to environmental, social, and governance standards, allowing you to invest in a future that aligns with your values. 

You can learn more about our range of ESG portfolios here.

7. Go for an award-winning digital pension management you can trust

Retirement planning can feel complex, but with our award-winning pension management (we’ve recently been recognised as Best Private Pension at the Good Money Guide Awards – check it out), we make it simple and effective. Our expert team builds cost-efficient, diversified portfolios tailored for your future, using in-depth analysis and strategic rebalancing to keep your investments aligned with your long-term goals.

The Moneyfarm Pension SIPP is managed in-house, ensuring your retirement savings are always in expert hands. We invest only in regulated, ‘standard’ assets, such as exchange-traded funds (ETFs), avoiding illiquid or complicated investments that can add unnecessary risk and complexity.

Our digital platform is designed for simplicity and accessibility, allowing you to consolidate and transfer pensions seamlessly. Through our platform, you’ll have instant access to track your progress, while our personalised, automated financial advice helps you plan confidently for the future.

To top it off, we provide free, personalised guidance through our dedicated consultants. Our team is only a phone or video call away, ready to discuss your portfolio, market insights, or any questions you might have. 

We combine expert management, a human touch, and digital simplicity to ensure you have everything you need for a well-supported retirement journey.

If you have any questions with regards to planning for your future, we highly recommend booking an appointment with one of our Investment Consultants here.

7 plus 1. Pension transfer cashback

Now might be an ideal moment to bring your old pensions together with Moneyfarm, with a cashback offer available when you transfer an existing pension. If it’s the right thing to do, consolidate your pensions into a new Moneyfarm plan that’s invested in the right way for you and you’ll get up to £3,000 cashback when you transfer*. Find out more about the cashback offer here.

*Capital at risk. UK residents, 18+. T&Cs apply. Transfer £5,000 for £50 cashback, £300,000 for max £3,000. 24-month investment required. Registration closes 02/12/2024.