Are you a director of a Ltd company who is keen to save towards your retirement? Well, Self-Invested Personal Pensions (SIPPs) offer a variety of ways in which you can invest for later life. When considering long-term investments such as pensions savings, key considerations should include your needs, level of risk, accessibility of pension pots, fees involved, and how to withdraw your pension. Let's explore the ins and outs of Pensionbee and Penfold which are popular SIPPs options available.

 

PensionBee Penfold 
Accessibility of accounts Founded in 2014, it offers an easy and convenient way to set up a personal pension online and via an app that is very easy to navigate.

Ability to consolidate existing pension pots from other providers such as Aviva, NEST and Aon within minutes.

User friendly interface that allows 24/7 access to your pension balance. You can change or cancel contributions at any time.

You will be assigned a personal account manager (BeeKeeper) who will provide ongoing customer support.

 

 Launched in 2019, it also offers a digital platform to set up and access personal pension plans.

 

The consolidation of old pension pots also supported.

 

Ability to access, manage and track pensions with control over where your money is invested.

 

Offers the ability to change or pause contribution at any time.
Investment Offers the flexibility to set up an account with no minimum cap to the initial investment.

Flexible contributions – you have the ability to save any amount and whenever you like.

Wider range of investment options available but popular ones include:

Tracker (low cost), Tailored (default option) and Impact (ethical)

 

 Also offers the flexibility to set up accounts with just £1.

Range of payment options offered with no restrictions on amount or frequency of money paid in.

Fewer investment options but plans are tailored to personal circumstances of individuals. Popular plans include:

Lifetime, Standard and Sustainable (ethical)
Fees Annual fees generally start from 0.50% of your pension balance but can vary from 0.25% to 0.95% (depending on the chosen plan and amount of investment) with no hidden costs. Annual fees are generally 0.75% for savings up to £100,000 but can range from 0.40% to 0.88% (depending on the plan chosen and the amount of investment)
Accessing your pension (pension drawdown) Free withdrawal policy of 7-10 working days from age 55 (set to rise to age 57 from 2028). Lump sum, drawdown and annuity allowed.

Withdrawal requests are easy and straightforward and can be done online or via the app.

 Free withdrawal in the form of a lump sum, drawdown or annuity

Withdrawal request includes no paperwork and can also be done online or via the app.

 

Both Pensionbee and Penfold provide contemporary and efficient ways to access and engage with personal pensions. Despite the subtle differences between both providers, PensionBee has a higher overall customer rating and is more user friendly. But, whichever option you choose as your investment provider, bear in mind that pension investments fluctuate so your initial capital may be at risk of loss of value. The great news however, is that SIPPs attract a minimum of 25% government bonus on each contribution (depending on tax band) and they also offer generous tax savings - first 25% of your pension drawdown is tax free! Investments in Pensionbee and Penfold are also protected by the Financial Services Compensation Scheme (FSCS) so up to £85,000 of your investment is protected by the government in the event that these regulated financial providers fail.