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Always remember that investments can go down as well as up in value, so you could get back less than you put in. How you’re taxed will depend on your circumstances, and pension and tax rules can change.
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Contents:
Compare some of the best stakeholder pension providers below:
You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.
Capital at risk. Other charges may apply.
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The Aviva Stakeholder Pension allows you to invest your money in a range of funds that offer you access to various assets such as stocks, shares and property. And you can choose from a range of high to low risk funds, depending on your attitude to risk. With Aviva, you can start your Stakeholder Pension with as little as £20 a month, and pay money into your pension plan either regularly, e.g. every month, or make one-off payments. You can also change that amount or stop and start payments when you need to. When you reach the retirement age of 55 (57 from 2028), you will have a number of options about how you can use your pension savings, including taking an income, lump sum or a combination of both of these. The Aviva Stakeholder pension also lets you create a pension pot for your children or grandchildren. You can deposit up to £2,880 for each child per year.
With Aviva, you pay only an annual fund charge, which is capped at 1%. And you will not have to pay any charges for setting up your investment or for switching money between funds. Aviva offers financial advice at a separate fee.
Please note: When you pay into a pension, your capital is at risk.
The Standard Life Stakeholder Pension allows you to invest your money in 30+ funds and 2 Lifestyle Profiles. You can invest in up to 12 funds at any one time, but if you decide to pick a Lifestyle Profile, you can only combine this with a with-profits fund. The Lifestyle Profiles are ready-made investment portfolios that invest your money in funds and move them as you get closer to retirement, to try and get you the best possible returns for your goals. If you do not want to choose a fund, Standard Life will automatically invest your money in a Lifestyle Profile depending on goals and risk preferences.
Standard Life charges an annual management charge of 1% of the value of the funds you are invested in each year.
Please note: When you pay into a pension, your capital is at risk.
Compare some of the best private pension providers in the UK below.
You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.
Capital at risk. Other charges apply.
Interactive Investor is the UK's number one flat-fee investment platform with more than 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts and ETFs. The Interactive Investor Pension allows you to build a pension in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot using Quick-start Funds, which is an easy way to start investing where you choose from six low-cost funds prepared by the team of experts at Interactive Investor. Advanced or more confident investors can choose from a wide range of funds and shares and build their pension portfolios themselves. With Interactive Investor, You can combine your other pensions into one SIPP for simpler retirement planning. You also get a free trade every month, which you can use to buy or sell any investment. When you reach the retirement age of 55 (57 from 2028), Interactive Investor will provide a range of options for taking an income from your pension, and there is no extra charge for this.
Interactive Investor charges a flat fee of £12.99 per month, so you know exactly how much you will be paying each month. The higher your pension pot, the lower this fee becomes on a percentage basis. Interactive Investor has other products, including a Stocks and Shares ISA, Trading Account, and Junior ISA.
Special offer: Open a SIPP and pay no monthly fee for 6 months. Terms apply.
Please note: When you pay into a pension, your capital is at risk.
AJ Bell Youinvest is one of the UK’s largest online investment platforms, and it is on a mission to make investing as easy as possible for you. AJ Bell Youinvest was the first investment company in the UK to offer an online SIPP. Investors can select from thousands of investments, including UK and overseas shares, funds, investment trusts and ETFs. With AJ Bell Youinvest, you can build your pension portfolio in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can get a little, or a lot, of help from AJ Bell Youinvest’s specialists by selecting one of the investment ideas on offer. Advanced or more confident investors can choose from thousands of investments and build their pension portfolios themselves. The AJ Bell Youinvest SIPP is suitable for both the self-employed and those looking to open a personal pension to complement their workplace pension. AJ Bell Youinvest also lets you combine your existing pensions in a SIPP, so you can see and control everything in one place. This helps you understand how your pension is performing and exactly what you're paying in charges.
It’s free to open an AJ Bell Youinvest SIPP, and you can buy investments from as little as £1.50. There is a yearly charge for holding investments, but it is never more than 0.25%. AJ Bell Youinvest also offers a Stocks and Shares ISA, Lifetime ISA, Junior ISA and Dealing Account. AJ Bell Youinvest does not offer advice.
Please note: When you pay into a pension, your capital is at risk. Pension rules also apply.
Bestinvest is a UK investment platform offering about 2,500 funds, UK shares, investment trusts and ETFs. With Bestinvest, you can build your pension pot in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by selecting one of Bestinvest’s ready-made investments. These investments are fully diversified and created and managed by the team at Bestinvest. Once you’ve picked one, you don’t need to do anything else. Advanced or more confident investors can choose from a wide range of funds, shares, ETFs and ITs and build their investment pension portfolio themselves. Bestinvest also has an investment search tool that makes it easy to browse and filter all of the investments, and you can use their free guides and articles if you need any inspiration. They are quite popular for their Spot the Dog guide which shows a list of poorly performing funds you probably want to avoid.
There are no set-up fees or fund dealing charges with the Bestinvest SIPP. Additionally, Bestinvest will pay up to £500 towards your exit fees when you transfer your pensions to them (terms apply). Bestinvest allows you to invest via a Stocks and Shares ISA, General Investment Account and SIPP.
Please note: When you pay into a pension, your capital is at risk.
Saxo Markets is the UK division of Saxo Bank, a large European bank and investment platform that allows you to invest in 60,000+ financial products from stock markets around the world, including London, New York, Hong Kong, and 50+ global markets. With Saxo Markets, you can build your pension portfolio with more than 11,000 global stocks, ETFs and bonds. Beginner investors or those who prefer a ready-made investment portfolio can select from one of the managed portfolios on offer, where Saxo experts navigate the markets and manage your investments on your behalf. The average cost of a managed portfolio is 0.95% per year (including fund costs). Advanced or more confident investors can choose from the range of financial products on offer and build their portfolios themselves. It’s free to open a SIPP with Saxo Markets, and all registered users have access to a personal account manager.
Saxo Markets has different transaction fees grouped into trading tiers. If you plan to trade high volumes, you can upgrade your tier to get lower transaction fees. The Classic tier, which attracts the highest trading fees, costs 0.10% (min. £8) per deal for UK Stocks and US$0.02 (min. US$10) per deal for US Stocks. Other fees apply. Additionally, other exchanges, such as those in Europe or Asia, have different trading fees, which you can find on Saxo Markets’ website. Saxo Markets’ suite of products includes a Trading Account, Stocks and Shares ISA and SIPP.
Please note: When you pay into a pension, your capital is at risk.
Netwealth is a wealth management platform designed for high-net-worth individuals. Netwealth’s overarching goal is to help you manage your money cost-effectively while generating a secure income over the medium to long term that may help with important financial events, such as school fees, retirement or elderly care. When you join Netweath, the team of wealth managers will help you define your objectives. This process informs what combination of risk levels and account types are best suited for you. The team will also help you put a financial plan in place and check back in with you regularly. With Netwealth, you can choose from seven ready-made globally diversified portfolios, which aim to maximise the return for your chosen risk level.
The minimum investment amount to become a client of Netwealth is £50,000. This, however, can be made up of different account types and include cash deposits and transfers from other providers. For example, the minimum portfolio size for an ISA is £5,000 and £1,000 for a JISA. There is no dealing fee, but the average annual investment cost comes to about 0.30%. Other charges apply. Netwealth’s suite of products includes a Stocks and Shares ISA, Junior Stocks and Shares ISA, General Investment Account and SIPP.
Please note: When you pay into a pension, your capital is at risk.
Hargreaves Lansdown is a FTSE 100 company and the biggest investment platform in the UK. Hargreaves Lansdown allows you to build a SIPP portfolio from over 2,500 funds, UK and overseas shares, investment trusts and more. With Hargreaves Lansdown, you can build your pension portfolio in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by choosing from a range of ready-made options where the team of experts at Hargreaves Lansdown will take care of the day-to-day investment decisions for you. Advanced or more confident investors can choose from a wide range of funds, shares and other investments and build their pension portfolios themselves.
The Hargreaves Lansdown SIPP is free to set up and low cost to run. There is a yearly charge for holding investments, but it is never more than 0.45%. Some of the investments on offer have their own annual charges, so please check these before investing. It is also free to buy and sell funds. Other dealing charges depend on the type of investment and how often you trade. If you need a financial adviser to help you choose investments, Hargreaves Lansdown offers a financial advice service at a fee. Hargreaves Lansdown also offers a Stocks and Shares ISA, Lifetime ISA, Junior ISA and Fund and Share Account.
Please note: The Hargreaves Lansdown SIPP is intended for investors happy at making their own investment decisions. When you pay into a pension, your capital is at risk. The charges quoted here are not exhaustive - other charges apply.
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. Investors can choose from seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, but each investment portfolio is made up of exchange-traded funds (ETFs) and other passive trackers. Customers also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. If you tell Moneyfarm when you aim to retire, the team will manage your portfolio around your target retirement date - reducing your risk as the date approaches. It is easy to transfer your existing pensions to Moneyfarm. Just fill in your details in-app or online. Moneyfarm will then talk to your existing provider and move your pensions over to your Moneyfarm account. The process typically takes about 3 - 4 weeks and is as paperless as possible, depending on your provider. When you reach the retirement age of 55 (57 from 2028), Moneyfarm will provide a range of flexible options for taking an income from your pension. This is called a pension drawdown, and there is no extra charge for it.
Moneyfarm charges a yearly account management fee starting at 0.75% and reducing to 0.35% depending on the size of your portfolio. The annual average investment fund fee is 0.2%, and the annual effect of market spread comes to about 0.09%. Moneyfarm has other products, including a Stocks and Shares ISA and General Investment Account.
Please note: When you pay into a pension, your capital is at risk.
Penfold is a modern pension provider offering customers a quick and easy way to build and contribute to their pension pots. The platform is digital-first and built for everyone regardless of whether you are employed, self-employed or running your own business. With Penfold, you can open a private pension, self-employed pension or be auto-enrolled via your workplace. Once you sign up, you can choose from four plans: Lifetime, Standard, Sustainable and Sharia, depending on your goals and values. Set up only takes 5 minutes, and you can adjust your contributions at any time. Penfold can also track and transfer your old pensions - even if you do not know the details, so you can combine all your pensions from previous employments in one place. If you are ever confused about anything relating to your pension or retirement, they have a team of experts happy to provide jargon-free answers to your questions.
There is no minimum deposit when you set up your pension with Penfold, and you can pay nothing each month if you like. If you do make a contribution, the minimum amount Penfold can process is £10. Penfold charges an annual fee between 0.75% and 0.88%, depending on the plan you choose. If your pension pot size is larger than £100,000 the fee is reduced to either 0.4% or 0.53%, depending on the plan you choose, on the portion of your savings over this amount.
Please note: When you pay into a pension, your capital is at risk.
Vanguard is a popular low-cost investment platform with over 75 own-brand funds, including ETFs, active funds and index funds. Vanguard does not offer stocks and shares, but there are various ETFs on offer for those interested in exchange-traded securities. The Vanguard SIPP allows you to build a pension in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by selecting one of the Target Retirement funds, which give you access to thousands of bonds and shares in a single investment. Advanced or more confident investors can choose from over 75 individual Vanguard funds and build their pension portfolios themselves. It is pretty straightforward to transfer your existing pensions to Vanguard, and it is completely free to do so - although your existing provider might charge you a fee, so do check with them first.
To open a Vanguard SIPP, you need to have at least £100 per month or a lump sum of £500. There is a yearly management fee of 0.15% (capped at £375) per year. Some of the funds on offer have separate charges, so please check these before investing. Vanguard has other products, including a Stocks and Shares ISA, Junior ISA, General Account and Personal Financial Planning.
Please note: When you pay into a pension, your capital is at risk.
The Aviva Stakeholder Pension allows you to invest your money in a range of funds that offer you access to various assets such as stocks, shares and property. And you can choose from a range of high to low risk funds, depending on your attitude to risk. With Aviva, you can start your Stakeholder Pension with as little as £20 a month, and pay money into your pension plan either regularly, e.g. every month, or make one-off payments. You can also change that amount or stop and start payments when you need to. When you reach the retirement age of 55 (57 from 2028), you will have a number of options about how you can use your pension savings, including taking an income, lump sum or a combination of both of these. The Aviva Stakeholder pension also lets you create a pension pot for your children or grandchildren. You can deposit up to £2,880 for each child per year.
With Aviva, you pay only an annual fund charge, which is capped at 1%. And you will not have to pay any charges for setting up your investment or for switching money between funds. Aviva offers financial advice at a separate fee.
Please note: When you pay into a pension, your capital is at risk.
The Standard Life Stakeholder Pension allows you to invest your money in 30+ funds and 2 Lifestyle Profiles. You can invest in up to 12 funds at any one time, but if you decide to pick a Lifestyle Profile, you can only combine this with a with-profits fund. The Lifestyle Profiles are ready-made investment portfolios that invest your money in funds and move them as you get closer to retirement, to try and get you the best possible returns for your goals. If you do not want to choose a fund, Standard Life will automatically invest your money in a Lifestyle Profile depending on goals and risk preferences.
Standard Life charges an annual management charge of 1% of the value of the funds you are invested in each year.
Please note: When you pay into a pension, your capital is at risk.
Compare some of the best pension providers for self-employed people below:
You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.
Capital at risk. Other charges apply.
AJ Bell Youinvest is one of the UK’s largest online investment platforms, and it is on a mission to make investing as easy as possible for you. AJ Bell Youinvest was the first investment company in the UK to offer an online SIPP. Investors can select from thousands of investments, including UK and overseas shares, funds, investment trusts and ETFs. With AJ Bell Youinvest, you can build your pension portfolio in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can get a little, or a lot, of help from AJ Bell Youinvest’s specialists by selecting one of the investment ideas on offer. Advanced or more confident investors can choose from thousands of investments and build their pension portfolios themselves. The AJ Bell Youinvest SIPP is suitable for both the self-employed and those looking to open a personal pension to complement their workplace pension. AJ Bell Youinvest also lets you combine your existing pensions in a SIPP, so you can see and control everything in one place. This helps you understand how your pension is performing and exactly what you're paying in charges.
It’s free to open an AJ Bell Youinvest SIPP, and you can buy investments from as little as £1.50. There is a yearly charge for holding investments, but it is never more than 0.25%. AJ Bell Youinvest also offers a Stocks and Shares ISA, Lifetime ISA, Junior ISA and Dealing Account. AJ Bell Youinvest does not offer advice.
Please note: When you pay into a pension, your capital is at risk. Pension rules also apply.
Hargreaves Lansdown is a FTSE 100 company and the biggest investment platform in the UK. Hargreaves Lansdown allows you to build a SIPP portfolio from over 2,500 funds, UK and overseas shares, investment trusts and more. With Hargreaves Lansdown, you can build your pension portfolio in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by choosing from a range of ready-made options where the team of experts at Hargreaves Lansdown will take care of the day-to-day investment decisions for you. Advanced or more confident investors can choose from a wide range of funds, shares and other investments and build their pension portfolios themselves.
The Hargreaves Lansdown SIPP is free to set up and low cost to run. There is a yearly charge for holding investments, but it is never more than 0.45%. Some of the investments on offer have their own annual charges, so please check these before investing. It is also free to buy and sell funds. Other dealing charges depend on the type of investment and how often you trade. If you need a financial adviser to help you choose investments, Hargreaves Lansdown offers a financial advice service at a fee. Hargreaves Lansdown also offers a Stocks and Shares ISA, Lifetime ISA, Junior ISA and Fund and Share Account.
Please note: The Hargreaves Lansdown SIPP is intended for investors happy at making their own investment decisions. When you pay into a pension, your capital is at risk. The charges quoted here are not exhaustive - other charges apply.
Bestinvest is a UK investment platform offering about 2,500 funds, UK shares, investment trusts and ETFs. With Bestinvest, you can build your pension pot in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by selecting one of Bestinvest’s ready-made investments. These investments are fully diversified and created and managed by the team at Bestinvest. Once you’ve picked one, you don’t need to do anything else. Advanced or more confident investors can choose from a wide range of funds, shares, ETFs and ITs and build their investment pension portfolio themselves. Bestinvest also has an investment search tool that makes it easy to browse and filter all of the investments, and you can use their free guides and articles if you need any inspiration. They are quite popular for their Spot the Dog guide which shows a list of poorly performing funds you probably want to avoid.
There are no set-up fees or fund dealing charges with the Bestinvest SIPP. Additionally, Bestinvest will pay up to £500 towards your exit fees when you transfer your pensions to them (terms apply). Bestinvest allows you to invest via a Stocks and Shares ISA, General Investment Account and SIPP.
Please note: When you pay into a pension, your capital is at risk.
Interactive Investor is the UK's number one flat-fee investment platform with more than 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts and ETFs. The Interactive Investor Pension allows you to build a pension in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot using Quick-start Funds, which is an easy way to start investing where you choose from six low-cost funds prepared by the team of experts at Interactive Investor. Advanced or more confident investors can choose from a wide range of funds and shares and build their pension portfolios themselves. With Interactive Investor, You can combine your other pensions into one SIPP for simpler retirement planning. You also get a free trade every month, which you can use to buy or sell any investment. When you reach the retirement age of 55 (57 from 2028), Interactive Investor will provide a range of options for taking an income from your pension, and there is no extra charge for this.
Interactive Investor charges a flat fee of £12.99 per month, so you know exactly how much you will be paying each month. The higher your pension pot, the lower this fee becomes on a percentage basis. Interactive Investor has other products, including a Stocks and Shares ISA, Trading Account, and Junior ISA.
Special offer: Open a SIPP and pay no monthly fee for 6 months. Terms apply.
Please note: When you pay into a pension, your capital is at risk.
Saxo Markets is the UK division of Saxo Bank, a large European bank and investment platform that allows you to invest in 60,000+ financial products from stock markets around the world, including London, New York, Hong Kong, and 50+ global markets. With Saxo Markets, you can build your pension portfolio with more than 11,000 global stocks, ETFs and bonds. Beginner investors or those who prefer a ready-made investment portfolio can select from one of the managed portfolios on offer, where Saxo experts navigate the markets and manage your investments on your behalf. The average cost of a managed portfolio is 0.95% per year (including fund costs). Advanced or more confident investors can choose from the range of financial products on offer and build their portfolios themselves. It’s free to open a SIPP with Saxo Markets, and all registered users have access to a personal account manager.
Saxo Markets has different transaction fees grouped into trading tiers. If you plan to trade high volumes, you can upgrade your tier to get lower transaction fees. The Classic tier, which attracts the highest trading fees, costs 0.10% (min. £8) per deal for UK Stocks and US$0.02 (min. US$10) per deal for US Stocks. Other fees apply. Additionally, other exchanges, such as those in Europe or Asia, have different trading fees, which you can find on Saxo Markets’ website. Saxo Markets’ suite of products includes a Trading Account, Stocks and Shares ISA and SIPP.
Please note: When you pay into a pension, your capital is at risk.
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. Investors can choose from seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, but each investment portfolio is made up of exchange-traded funds (ETFs) and other passive trackers. Customers also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. If you tell Moneyfarm when you aim to retire, the team will manage your portfolio around your target retirement date - reducing your risk as the date approaches. It is easy to transfer your existing pensions to Moneyfarm. Just fill in your details in-app or online. Moneyfarm will then talk to your existing provider and move your pensions over to your Moneyfarm account. The process typically takes about 3 - 4 weeks and is as paperless as possible, depending on your provider. When you reach the retirement age of 55 (57 from 2028), Moneyfarm will provide a range of flexible options for taking an income from your pension. This is called a pension drawdown, and there is no extra charge for it.
Moneyfarm charges a yearly account management fee starting at 0.75% and reducing to 0.35% depending on the size of your portfolio. The annual average investment fund fee is 0.2%, and the annual effect of market spread comes to about 0.09%. Moneyfarm has other products, including a Stocks and Shares ISA and General Investment Account.
Please note: When you pay into a pension, your capital is at risk.
Penfold is a modern pension provider offering customers a quick and easy way to build and contribute to their pension pots. The platform is digital-first and built for everyone regardless of whether you are employed, self-employed or running your own business. With Penfold, you can open a private pension, self-employed pension or be auto-enrolled via your workplace. Once you sign up, you can choose from four plans: Lifetime, Standard, Sustainable and Sharia, depending on your goals and values. Set up only takes 5 minutes, and you can adjust your contributions at any time. Penfold can also track and transfer your old pensions - even if you do not know the details, so you can combine all your pensions from previous employments in one place. If you are ever confused about anything relating to your pension or retirement, they have a team of experts happy to provide jargon-free answers to your questions.
There is no minimum deposit when you set up your pension with Penfold, and you can pay nothing each month if you like. If you do make a contribution, the minimum amount Penfold can process is £10. Penfold charges an annual fee between 0.75% and 0.88%, depending on the plan you choose. If your pension pot size is larger than £100,000 the fee is reduced to either 0.4% or 0.53%, depending on the plan you choose, on the portion of your savings over this amount.
Please note: When you pay into a pension, your capital is at risk.
Wealthify is a UK robo advisor that allows you to choose from five investment Plans based on your attitude to risk. These investment Plans are named Cautious, Tentative, Confident, Ambitious and Adventurous and allow you to choose a risk level that best suits your needs. If you are conscious about the environment or would simply like to invest in line with your values, Wealthify’s five portfolios are also available as ethical investment Plans, so you can stay true to your values while potentially growing your money.
Wealthify charges an annual platform fee of 0.60%, and fund management fees range from 0.16% to 0.70% per year, depending on your chosen investment theme. Once you complete the signup process, you can start investing with a lump sum from £50 which you can top up as frequently as you want. Wealthify’s suite of products includes a General Investment Account, Stocks and Shares ISA, Junior ISA and SIPP in both Original and Ethical themes.
Please note: When you pay into a pension, your capital is at risk.
Vanguard is a popular low-cost investment platform with over 75 own-brand funds, including ETFs, active funds and index funds. Vanguard does not offer stocks and shares, but there are various ETFs on offer for those interested in exchange-traded securities. The Vanguard SIPP allows you to build a pension in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by selecting one of the Target Retirement funds, which give you access to thousands of bonds and shares in a single investment. Advanced or more confident investors can choose from over 75 individual Vanguard funds and build their pension portfolios themselves. It is pretty straightforward to transfer your existing pensions to Vanguard, and it is completely free to do so - although your existing provider might charge you a fee, so do check with them first.
To open a Vanguard SIPP, you need to have at least £100 per month or a lump sum of £500. There is a yearly management fee of 0.15% (capped at £375) per year. Some of the funds on offer have separate charges, so please check these before investing. Vanguard has other products, including a Stocks and Shares ISA, Junior ISA, General Account and Personal Financial Planning.
Please note: When you pay into a pension, your capital is at risk.
The Aviva Stakeholder Pension allows you to invest your money in a range of funds that offer you access to various assets such as stocks, shares and property. And you can choose from a range of high to low risk funds, depending on your attitude to risk. With Aviva, you can start your Stakeholder Pension with as little as £20 a month, and pay money into your pension plan either regularly, e.g. every month, or make one-off payments. You can also change that amount or stop and start payments when you need to. When you reach the retirement age of 55 (57 from 2028), you will have a number of options about how you can use your pension savings, including taking an income, lump sum or a combination of both of these. The Aviva Stakeholder pension also lets you create a pension pot for your children or grandchildren. You can deposit up to £2,880 for each child per year.
With Aviva, you pay only an annual fund charge, which is capped at 1%. And you will not have to pay any charges for setting up your investment or for switching money between funds. Aviva offers financial advice at a separate fee.
Please note: When you pay into a pension, your capital is at risk.
The Standard Life Stakeholder Pension allows you to invest your money in 30+ funds and 2 Lifestyle Profiles. You can invest in up to 12 funds at any one time, but if you decide to pick a Lifestyle Profile, you can only combine this with a with-profits fund. The Lifestyle Profiles are ready-made investment portfolios that invest your money in funds and move them as you get closer to retirement, to try and get you the best possible returns for your goals. If you do not want to choose a fund, Standard Life will automatically invest your money in a Lifestyle Profile depending on goals and risk preferences.
Standard Life charges an annual management charge of 1% of the value of the funds you are invested in each year.
Please note: When you pay into a pension, your capital is at risk.
Private pensions are pensions schemes that are not arranged by the government. There are two types of private pensions:
In this article, we cover what a personal pension is, types of personal pensions, tax relief on personal pension, how to choose a personal pension, best private pension providers and more. If you are interested in workplace pensions, click here to learn more.
A personal pension is a type of private pension that you arrange yourself.
Like all pensions, the money you pay into a personal pension is put into investments (such as stocks, shares and bonds) by the pension provider.
And depending on your investing savviness, you can either choose the individual stocks and shares that make up your pension pot or have your pension provider do it for you.
Pension contributions are tax-free up to certain limits. You'll pay tax if you:
You usually can't access the money in your pension pot until you are 55 (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.
If you don't have a workplace pension, a personal pension could be a great way to save for retirement. And even if you have a workplace pension, a personal pension in addition to your workplace pension could be a great way to grow your retirement savings faster.
Personal pensions are especially great for people who:
There are two types of personal pensions:
Due to their flexibility, stakeholder pensions can be of particular benefit if you're self-employed, on a low income, or not working.
Another way to save into a pension is with a Lifetime ISA. A Lifetime ISA is open to adults aged 39 or younger and lets you save up to £4,000 a year towards your first home or retirement. The government will add a 25% bonus to your savings every year up to a maximum of £1,000 per year.
The government will add money to your pension contributions in the form of tax relief (free money).
For every £80 you put into your pension, the government adds £20 - and you can claim an extra £20 if you're a higher earner.
You can think of tax relief as a refund of the tax you originally paid on your pension contribution, at your usual rate of income tax - 20%, 40%, or 45%.
It's your pension provider who claims this tax relief at the basic rate and adds it to your pension. Tax relief for higher rate taxpayers is slightly different. If you're a higher rate taxpayer, you'll need to claim the additional rebate through your tax return.
A private pension can be a great way to boost the savings in your pension pot and provide you with more income than the State Pension in your retirement years.
Tax benefits from a private pension means that any money you put towards your pension will be increased through tax relief, which puts more money in your pocket and less towards government taxes.
These benefits continue when you retire. Once you reach retirement age, you can take 25% of your pension fund as a tax-free lump sum. The remaining funds will then be paid to you as income and taxed at normal levels.
It’s important to keep in mind that tax benefits from a private pension don’t apply to everyone. The best way to determine whether or not a private pension is right for you is to speak to a regulated financial adviser.
You can pay 100% of your earnings into your pension every year up to a maximum of £40,000. Any contribution above this will be taxed.
Private pension contributions are tax-free up to certain limits.
You’ll usually pay tax if the savings in your pension pot exceed the following limits:
Pension schemes must be registered with HMRC to qualify for tax relief. You can check with your pension provider if you’re unsure whether your scheme is registered or not.
Yes, you can. Getting a private pension in addition to your workplace pension could be a great way to grow your retirement savings faster.
You usually can't cash in your private pension pot before you're 55 (increases to 57 in 2028), but there are some rare cases where you can, e.g., if you are too ill to work or if you have a severe illness, which means you're expected to live for less than a year.
In the case of the State Pension, the earliest you can get that is when you reach your State Pension age. If you're currently aged between 20 and 39, your State Pension age will likely be 68. If you retire before this age, you'll have to wait to claim your State Pension.
Yes, you can. When you turn 55 (increases to 57 in 2028), you can take 25% of your pension pot as a tax-free lump sum.
10% of your annual gross income is a good pension contribution, but the more you save into your pension, the better.
Most financial advisers recommend saving at least 10% of your income before tax towards your retirement. 10% might seem like a lot, but remember that it includes tax relief from the government and employer contributions if your employer contributes.
When deciding how much to contribute, remember to consider how old you'll be when you retire, your preferred retirement lifestyle, and the average number of years people spend in retirement. Have a play with the Money Advice Service's Pension Calculator to work out how changing your pension contributions at your age will affect your total retirement savings.
If you have more questions, ask the community!
Here are some of the best pension providers in the UK:
A group personal pension (GPP) is a collection of individual pension plans arranged by an employer for its employees. If you’re enrolled onto a GPP, you can use it to build up a personal pension fund that will provide you with an income for when you retire.
As an employee, you’ll typically be enrolled onto a pension scheme automatically. It’ll be run by a pension provider that your employer chooses, but your individual pension contract will be between you and the provider.
In a GPP, your pension pot builds up through contributions made by both you and your employer, investment returns and tax relief.
Compare some of the best SIPP providers in the UK below.
You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028), when you can take 25% as a tax-free lump sum.
Capital at risk. Other charges apply.
Interactive Investor is the UK's number one flat-fee investment platform with more than 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts and ETFs. The Interactive Investor Pension allows you to build a pension in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot using Quick-start Funds, which is an easy way to start investing where you choose from six low-cost funds prepared by the team of experts at Interactive Investor. Advanced or more confident investors can choose from a wide range of funds and shares and build their pension portfolios themselves. With Interactive Investor, You can combine your other pensions into one SIPP for simpler retirement planning. You also get a free trade every month, which you can use to buy or sell any investment. When you reach the retirement age of 55 (57 from 2028), Interactive Investor will provide a range of options for taking an income from your pension, and there is no extra charge for this.
Interactive Investor charges a flat fee of £12.99 per month, so you know exactly how much you will be paying each month. The higher your pension pot, the lower this fee becomes on a percentage basis. Interactive Investor has other products, including a Stocks and Shares ISA, Trading Account, and Junior ISA.
Special offer: Open a SIPP and pay no monthly fee for 6 months. Terms apply.
Please note: When you pay into a pension, your capital is at risk.
AJ Bell Youinvest is one of the UK’s largest online investment platforms, and it is on a mission to make investing as easy as possible for you. AJ Bell Youinvest was the first investment company in the UK to offer an online SIPP. Investors can select from thousands of investments, including UK and overseas shares, funds, investment trusts and ETFs. With AJ Bell Youinvest, you can build your pension portfolio in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can get a little, or a lot, of help from AJ Bell Youinvest’s specialists by selecting one of the investment ideas on offer. Advanced or more confident investors can choose from thousands of investments and build their pension portfolios themselves. The AJ Bell Youinvest SIPP is suitable for both the self-employed and those looking to open a personal pension to complement their workplace pension. AJ Bell Youinvest also lets you combine your existing pensions in a SIPP, so you can see and control everything in one place. This helps you understand how your pension is performing and exactly what you're paying in charges.
It’s free to open an AJ Bell Youinvest SIPP, and you can buy investments from as little as £1.50. There is a yearly charge for holding investments, but it is never more than 0.25%. AJ Bell Youinvest also offers a Stocks and Shares ISA, Lifetime ISA, Junior ISA and Dealing Account. AJ Bell Youinvest does not offer advice.
Please note: When you pay into a pension, your capital is at risk. Pension rules also apply.
Hargreaves Lansdown is a FTSE 100 company and the biggest investment platform in the UK. Hargreaves Lansdown allows you to build a SIPP portfolio from over 2,500 funds, UK and overseas shares, investment trusts and more. With Hargreaves Lansdown, you can build your pension portfolio in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by choosing from a range of ready-made options where the team of experts at Hargreaves Lansdown will take care of the day-to-day investment decisions for you. Advanced or more confident investors can choose from a wide range of funds, shares and other investments and build their pension portfolios themselves.
The Hargreaves Lansdown SIPP is free to set up and low cost to run. There is a yearly charge for holding investments, but it is never more than 0.45%. Some of the investments on offer have their own annual charges, so please check these before investing. It is also free to buy and sell funds. Other dealing charges depend on the type of investment and how often you trade. If you need a financial adviser to help you choose investments, Hargreaves Lansdown offers a financial advice service at a fee. Hargreaves Lansdown also offers a Stocks and Shares ISA, Lifetime ISA, Junior ISA and Fund and Share Account.
Please note: The Hargreaves Lansdown SIPP is intended for investors happy at making their own investment decisions. When you pay into a pension, your capital is at risk. The charges quoted here are not exhaustive - other charges apply.
Netwealth is a wealth management platform designed for high-net-worth individuals. Netwealth’s overarching goal is to help you manage your money cost-effectively while generating a secure income over the medium to long term that may help with important financial events, such as school fees, retirement or elderly care. When you join Netweath, the team of wealth managers will help you define your objectives. This process informs what combination of risk levels and account types are best suited for you. The team will also help you put a financial plan in place and check back in with you regularly. With Netwealth, you can choose from seven ready-made globally diversified portfolios, which aim to maximise the return for your chosen risk level.
The minimum investment amount to become a client of Netwealth is £50,000. This, however, can be made up of different account types and include cash deposits and transfers from other providers. For example, the minimum portfolio size for an ISA is £5,000 and £1,000 for a JISA. There is no dealing fee, but the average annual investment cost comes to about 0.30%. Other charges apply. Netwealth’s suite of products includes a Stocks and Shares ISA, Junior Stocks and Shares ISA, General Investment Account and SIPP.
Please note: When you pay into a pension, your capital is at risk.
Penfold is a modern pension provider offering customers a quick and easy way to build and contribute to their pension pots. The platform is digital-first and built for everyone regardless of whether you are employed, self-employed or running your own business. With Penfold, you can open a private pension, self-employed pension or be auto-enrolled via your workplace. Once you sign up, you can choose from four plans: Lifetime, Standard, Sustainable and Sharia, depending on your goals and values. Set up only takes 5 minutes, and you can adjust your contributions at any time. Penfold can also track and transfer your old pensions - even if you do not know the details, so you can combine all your pensions from previous employments in one place. If you are ever confused about anything relating to your pension or retirement, they have a team of experts happy to provide jargon-free answers to your questions.
There is no minimum deposit when you set up your pension with Penfold, and you can pay nothing each month if you like. If you do make a contribution, the minimum amount Penfold can process is £10. Penfold charges an annual fee between 0.75% and 0.88%, depending on the plan you choose. If your pension pot size is larger than £100,000 the fee is reduced to either 0.4% or 0.53%, depending on the plan you choose, on the portion of your savings over this amount.
Please note: When you pay into a pension, your capital is at risk.
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. Investors can choose from seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, but each investment portfolio is made up of exchange-traded funds (ETFs) and other passive trackers. Customers also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. If you tell Moneyfarm when you aim to retire, the team will manage your portfolio around your target retirement date - reducing your risk as the date approaches. It is easy to transfer your existing pensions to Moneyfarm. Just fill in your details in-app or online. Moneyfarm will then talk to your existing provider and move your pensions over to your Moneyfarm account. The process typically takes about 3 - 4 weeks and is as paperless as possible, depending on your provider. When you reach the retirement age of 55 (57 from 2028), Moneyfarm will provide a range of flexible options for taking an income from your pension. This is called a pension drawdown, and there is no extra charge for it.
Moneyfarm charges a yearly account management fee starting at 0.75% and reducing to 0.35% depending on the size of your portfolio. The annual average investment fund fee is 0.2%, and the annual effect of market spread comes to about 0.09%. Moneyfarm has other products, including a Stocks and Shares ISA and General Investment Account.
Please note: When you pay into a pension, your capital is at risk.
Vanguard is a popular low-cost investment platform with over 75 own-brand funds, including ETFs, active funds and index funds. Vanguard does not offer stocks and shares, but there are various ETFs on offer for those interested in exchange-traded securities. The Vanguard SIPP allows you to build a pension in one of two ways depending on your investing savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can build their pension pot by selecting one of the Target Retirement funds, which give you access to thousands of bonds and shares in a single investment. Advanced or more confident investors can choose from over 75 individual Vanguard funds and build their pension portfolios themselves. It is pretty straightforward to transfer your existing pensions to Vanguard, and it is completely free to do so - although your existing provider might charge you a fee, so do check with them first.
To open a Vanguard SIPP, you need to have at least £100 per month or a lump sum of £500. There is a yearly management fee of 0.15% (capped at £375) per year. Some of the funds on offer have separate charges, so please check these before investing. Vanguard has other products, including a Stocks and Shares ISA, Junior ISA, General Account and Personal Financial Planning.
Please note: When you pay into a pension, your capital is at risk.
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