{"id":451433,"date":"2022-05-30T15:30:14","date_gmt":"2022-05-30T14:30:14","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=451433"},"modified":"2026-02-12T14:10:16","modified_gmt":"2026-02-12T14:10:16","slug":"nutmeg-pension-review","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/pensions\/nutmeg-pension-review","title":{"rendered":"Nutmeg pension review"},"content":{"rendered":"

Not to be mistaken for the fragrant spice on which its brand name is based, Nutmeg is now the largest digital wealth manager in the UK. Founded in 2011, it offers a range of general investments and ISAs as well as pensions<\/a>. Read on to find out what pension options it offers, how much you\u2019ll pay in pension fees, and the pros and cons of Nutmeg pensions.<\/p>

What is Nutmeg?<\/h3>

Nutmeg is one of a new breed of digital pension management firms that have sprung up over recent years to challenge what it sees as an opaque and expensive industry. It\u2019s regulated by the FCA, and claims to offer complete transparency and, it hopes, complete peace of mind. It aims to avoid financial jargon and complex charging structures, and claims to let you set up a new pension in just a few minutes.<\/p>

Nutmeg\u2019s pensions are designed to be managed digitally \u2013 online or via an app \u2013 though it also has a customer phone line.<\/p>

How does Nutmeg work?<\/h3>

One of the key things you need to know about Nutmeg is that it\u2019s a robo-advisor<\/a>. This may sound high-tech, but it basically means that, as with its other investment products, it uses an algorithm to select the investment portfolio<\/a> your pension money is invested in. This selection is based on your answers to questions about your appetite for risk and your preferred investment style. You don\u2019t really get \u201cadvice\u201d as such, so if you feel like you need more tailored support and recommendations, you may wish to get personal, regulated financial advice<\/a>. You\u2019ll almost certainly pay more for this though.<\/p>

The minimum investment to open a Nutmeg pension is \u00a3500. This is higher than some other challenger pension providers, so mightn\u2019t be as suitable for anyone investing in a pension for the very first time and looking to drip-feed small amounts into it. After the initial investment, you can tell Nutmeg the level of contribution you\u2019re happy with (up to your annual tax-free allowance<\/a>), and adjust this over time if you wish.<\/p>

Once your account is set up, you can log in whenever you want on web or mobile. This lets you see where your pension pot is invested, how it\u2019s performing, and how close you are to reaching your retirement target.<\/p>

If you already have a pension scheme that you\u2019re not happy with, or if you just want to keep things simple by keeping the number of pensions you have to a minimum, you can also transfer most existing pension pots, including SIPPs<\/a>, into your Nutmeg pension. The exception to this rule is some defined benefit workplace pensions<\/a>. You should always take regulated financial advice before transferring any defined benefit scheme.<\/p>

What does Nutmeg offer?<\/h3>

Nutmeg offers personal pension schemes. A personal, or \u201cprivate\u201d, pension is separate from your state pension and any workplace pension.<\/p>

For some people, such as the self-employed, a private pension<\/a> may be their only option. But, if you wish, you can open a personal pension (or more than one) on top of your workplace pension<\/a>.<\/p>

Like all personal and workplace pensions, with Nutmeg\u2019s personal pension you\u2019ll get tax relief on pension contributions<\/a> up to a certain limit. This means that, if you\u2019re a basic-rate taxpayer, for every \u00a3100 you pay in, the government will add \u00a325 to your pot. If you\u2019re a higher-rate taxpayer, you\u2019ll need to claim back the extra tax relief via a tax-return or directly from the government.<\/p>

How do I apply for a Nutmeg pension account?<\/h3>

You can apply for a Nutmeg pension online on the Nutmeg website. To open an account you\u2019ll need to:<\/p>

  1. Navigate to the pension page on the Nutmeg website, and select \u201cOpen or transfer a pension\u201d.<\/li>
  2. You\u2019ll then need to select an investment style, the time frame for when you want to start drawing your pension, and your risk preference.<\/li>
  3. You\u2019ll also need to choose the starting amount for your pension pot and any subsequent contributions. Nutmeg requires a minimum initial investment of \u00a3500. This can be from a direct contribution from your bank account, a pension transfer<\/a>, a contribution from your employer if it pays into personal pensions, or a mix of all three.<\/li><\/ol>

    How do I transfer another pension to Nutmeg?<\/h3>

    If you want to transfer a pension from another provider, you start in exactly the same way as outlined above, and let Nutmeg know during the process that you want to transfer an existing pot. For each pension you want to transfer, you\u2019ll need to supply:<\/p>