Having started life in the UK as a micro-saving Facebook chatbot back in 2017, Fintech challenger Plum now aims to help you make your money go further via its Android or iOS app. In 2021, Plum dipped its first toe into the pension market with the launch of the Plum SIPP.<\/p>
Plum\u2019s smart software analyses and understands patterns in your income and spending habits to assess how much you can realistically afford to save. Once its algorithms calculate a suitable amount to be put aside each week, this amount is automatically transferred via direct debit into your Plum account.<\/p>
You can save into an easy access, interest-paying account, a stocks and shares ISA or general investment account, or a personal pension account. If you want, you can use Plum\u2019s \u201csplitter\u201d function to automatically divide your automatic deposits between accounts.<\/p>
It\u2019s also possible to manually transfer ad hoc payments into your Plum account from a linked bank account.<\/p>
Plum purports to offer a type of personal pension known as a self-invested personal pension<\/a> (or SIPP, for short). The main difference between a SIPP and a regular personal pension is usually the amount of control you have over your investments.<\/p> All of which makes Plum\u2019s SIPP a bit of an oddball. Despite claiming to offer a SIPP, in practice when you take out a Plum pension (as of June 2022) you have to choose just one type of investment fund for your money. There are currently only a handful of fund types to choose from. Once you\u2019ve picked the fund type, Plum automatically invests your pension contributions in line with this choice. So, unlike what you\u2019d usually expect from a SIPP, you can just (according to Plum) \u201csit back\u201d and not think about your pension at all.<\/p> When we asked Plum about this, it told us: \u201cWhile most SIPP providers would let you pick a portfolio type\u2026or on the contrary a very wide selection of funds, we aim to give our customers the ability to have a say in their portfolio, but from a small hand-picked selection of funds we believe are good for them (or society) in the long run.\u201d<\/p> It also told us it plans to implement a feature whereby customers are able to hold multiple funds in their SIPP later in 2022.<\/p> As with any workplace or personal pension, with Plum\u2019s SIPP you benefit from tax relief on pension contributions<\/a> up to your pension annual allowance.<\/p> As of June 2022, when you open a Plum pension you are asked to choose from one of the following three fund types. Your pension contributions will be automatically invested in line with your choice.<\/p> You\u2019ll need to pay two types of fee to hold a Plum SIPP:<\/p> The first part is to download the Plum app from either the Apple App Store or Google Play store. You\u2019ll need to provide a few personal details (including email address, name, nationality, age and address) and link your most active current account to Plum.<\/p> Then, to set up a SIPP, you\u2019ll need to follow these steps:<\/p> There are two main ways to contribute to your Plum pension:<\/p>What pension fund types does Plum offer?<\/h3>
Plum\u2019s pension funds<\/h4>
Investment fund type<\/th> Details<\/th> Plum product provider fee<\/th> Fund management fee<\/th> Fund provider<\/th><\/tr><\/thead> Target Retirement Date Fund\t<\/td> Adjusts the risk level of your investments the closer you get to retirement. It gradually moves your pension pot into less risky funds over time, to take account of the shorter time period to weather any market downturns. <\/td> 0.45%<\/td> 0.24%<\/td> Vanguard<\/td><\/tr> Global Equity<\/td> Invests in shares in medium and large-sized companies from around the world.<\/td> 0.45%<\/td> 0.21%<\/td> Legal and General<\/td><\/tr> Future Planet<\/td> Designed to appeal to those that prioritise sustainable investing, this fund invests in shares in companies that meet positive carbon and environmental criteria.<\/td> 0.45%<\/td> 0.30%<\/td> Legal and General<\/td><\/tr><\/tbody><\/table> What fees does Plum charge?<\/h3>
How do I apply for a Plum pension account?<\/h3>
How do I pay into my Plum pension?<\/h3>