Moneybox pension review

You can consolidate all of your pension plans into one with the Moneybox app.

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What is Moneybox?

Moneybox first launched in 2016 as a “round ups” service, which meant it connected to your bank account and collected spare change from your spending to invest in a stocks and shares ISA. You can check out our full review of Moneybox’s original offering, but this article is all about Moneybox’s pension.

Since the early days, Moneybox has expanded to include savings accounts and pensions.

For its pensions service, Moneybox collects all of your pension pots in one plan, making it easy for you to view and manage your money.

How does Moneybox’s pension work?

Many people in the UK admit ignorance when it comes to their pensions, so a service like Moneybox, which both helps you to track down all your old pensions and manage them easily, can be a real help.

After you download the app, you input a few details about your old pension pots and the Moneybox staff track them down for you.

In most cases, this can be done fully electronically, but if any of your old providers need your signature to approve the transfer, Moneybox will get a form out to you.

If you’ve lost the details of your old pension pots then Moneybox can try and find them for you, you just need to open a chat up with the staff tell them your old employers.

If Moneybox is still unable to track down your pensions, it recommends getting in touch with your old employers to find out and gives you a template email to send to your employer. Only if all else fails, call the team and they’ll see what they can do.

Once you’ve set up your account, you can invest in one of three pension funds:

  1. Fidelity World Index Fund. This is the same fund available to users of the Moneybox app who take out a GIA, ISA or Lifetime ISA.
  2. Old Mutual World ESG Index Fund. The social responsibility choice, this fund focuses your investments on sustainable, socially conscious or ethical options.
  3. BlackRock LifePath Fund. This is a “lifestyle” fund that changes the balance of your investments as you near retirement age.

Some types of pensions (like those with extra benefits) cannot be transferred to Moneybox, and it also can’t accept the pension from your current employer – only old ones.

Moneybox pension fees

This is a point of contention with customers. Moneybox’s fees can get pretty high for those looking for long-term investment.

Moneybox charges a fee of 0.45% annually for pension pots up to £100,000. Anything above that will be charged at a fee of 0.15%. Your fee is calculated on a daily basis and is taken at the end of each month from the value of your investments.

On top of that, you will also be charged the fund provider fee, which is between 0.12% and 0.30%, depending on the fund you choose to invest in.

For more seasoned investors, these fees may seem excessive. However, those with less experience and knowledge of the market may find that the fees are worth it to have Moneybox take the hassle out of investing and having access to the easy-to-use app.

How do I get a Moneybox pension?

The first step is downloading the Moneybox app. You should then head to the account tab and join the pensions waiting list.

When your account is enabled, you’ll have to give Moneybox a few details about your old pension funds, including the provider names and policy numbers. If you don’t have these details to hand, Moneybox can point you in the right direction for where to find them or look them up for you. You will also need to choose which fund you want to invest your pension money into.

Once all the details are in, the Moneybox team will get the transfer process going and will keep you updated with any developments or need for further information. You can also check your account progress in the Investments tab of the app.

Pros and cons of Moneybox

Pros

  • Digital only. Having all of your account details and paperwork online or in the Moneybox app (available through Google Play or the App Store) means less clutter around the house.
  • Easy-to-use app. The user-friendly app makes managing and viewing your money easy.
  • Choice of funds. You can choose from three funds to suit your pocket and your values.
  • Other options available. You can also open a savings, investment, ISA or Lifetime ISA with Moneybox.
  • Safe and secure. Moneybox is FCA-authorised, with 256-bit encryption protecting your personal details.
  • Ability to add personal contributions. You can add to your pension by direct debit and round up your purchases.

Cons

  • High fees. Moneybox’s fees can end up eating into your pension pot in the long run.
  • Current pension not supported. You can only transfer your pension to Moneybox if you are no longer actively contributing to it.
  • No drawdown. You can’t withdraw your money from Moneybox directly when you reach retirement — you’ll have to transfer it to a different provider first.

The verdict

Moneybox makes it easy to see how much money you have in your pension pot by combining all of your pensions into one plan. The app is easy to use and is great for investment novices who need some extra guidance in order to navigate the market.

However, with high fees, no option for personal contributions and no drawdown, this service is not for everyone.

Read our review of the Moneybox app

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Interactive Investor
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Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Moneyfarm stocks and shares ISA
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Interactive Investor stocks and shares ISA
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Saxo Markets stocks and shares ISA
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

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