Online investment manager, Nutmeg has launched the Nutmeg pension, which has a minimum investment of GBP5000.
Customers are charged just one single annual management fee of between 0.3% and 1% (including VAT) depending on how much they have contributed to their Nutmeg funds. There are no set-up charges, exit penalties, or commission fees.
Customers can set up a Nutmeg personal pension from scratch or transfer from other providers, with the option of consolidating all their personal pension pots into one online account, accessible 24/7, showing them exactly where their pension money is invested, and how their investments are performing.
To further ensure customers are getting the most from their pension pot, Nutmeg will instantly add the 25% government top-up on customers’ net personal monthly contributions. This process, which is offered by very few providers, ensures Nutmeg’s pension customers benefit immediately from the top-up; it could otherwise take up to eight weeks to receive the refund from HMRC, by which time customers could have missed out on market performance. One-off cash contributions, as well as regular employer contributions, can also be paid into the Nutmeg pension.
In keeping with the Nutmeg approach to investing, customers’ pensions are built in line with their individual risk profile, primarily using exchange-traded funds (ETFs) to create globally diverse portfolios. Customers’ pensions are then managed by Nutmeg’s expert investment team who are constantly monitoring global financial markets to seek out opportunities for long-term returns, and regularly rebalancing portfolios as a result.
Nick Hungerford, CEO and founder of Nutmeg says: “This is really exciting for savers – finally a pension product that puts people in control, is expertly managed and painless to set up. We’ve listened to our customers and delivered what they truly want. In an industry embroiled in hidden charges, fees and complexity, our transparency promise will be a welcome reassurance to customers.
“The notion of receiving bi-annual pension statements in the post is incredibly archaic. You should be able to see where your pension pot is invested and how it’s performing whenever you want. We are particularly keen on seeing how we can engage younger savers in pensions – they will suffer most from the ever widening pension deficit. It is unlikely people will ever receive an adequate state pension and it is critical they engage in pension provision as early as possible. We’ve focused our efforts on delivering a slick, intuitive, easy-to-use solution.”