Sign up or transfer a personal pension in minutes.
Choose your investment style and risk profile.
Take control of your retirement.
With investment, your capital is at risk. Pension rules apply
We are authorised and regulated by the Financial Conduct Authority
Assets are protected by the Financial Services Compensation Scheme
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It's a subject swimming in complex narrative and unwieldy jargon, but a personal pension is essentially a tax-efficient way of investing for retirement. And thanks to tax relief, a contribution of £100 into your pension effectively turns into £125 – or even more if you are a higher rate taxpayer.
A personal pension could greatly improve your quality of life after work. How much ultimately rests on how much you’re willing to pay in and how your investments perform. That second part is where we come in...
We don’t hide behind complex pricing structures or financial jargon. We keep it simple. Open a Nutmeg private pension online in minutes or transfer an old pension.
Our in-house investment team have built a range of portfolios for all pension needs and match them to your chosen investment style. Like the idea of investing with a socially responsible focus? You can do just that with Nutmeg.
It’s easy to setup or consolidate your existing pensions with us. Start with as little as £500 and let us know the level of contribution and risk you’re comfortable with. Unsure? You can log in from any device and make changes along with life’s ebb and flow. And if you’re ready to dip into your retirement savings, we offer pension drawdown.
Not only do you have 24/7 access to your account, we’ll keep regular contact to explain where your pension is invested and how it’s performing. We'll also notify you six months and again six weeks prior to reaching your retirement date to let you know if you're on track. But that’s not all. Our customer support are on-hand to field any questions you have.
All three Nutmeg investment styles are built by experts and use exchange traded funds (more on ETFs here) to diversify across stocks, bonds, industries, even countries. Choose the one that works for you.
“I want my pension fully managed and invested in line with my values”
“I want experts to take a hands-on approach to my pension investments”
“I want a diversified portfolio without the cost of continuous management”
Below you can see a detailed breakdown of our performance over the past few years, as well as how our investments are allocated across countries and assets.
Explore our full 7-year track record for each of our 10 risk-based fully managed portfolios and see how our results compare against our competitors.
This past performance is simulated but based on real market transactions, with all customer portfolios represented as a single portfolio for each risk level. Past performance is not a reliable indicator of future performance.
*The annualised figure is the return since inception expressed as a compound annual rate. For example, a portfolio with an annualised return of 6% corresponds to an actual return of 19.1% over three years (rather than 18% as you might expect) due to the effect of compounding.
Capital at risk
Unsure what you need for your private pension? Our pension contribution calculator will do the maths for you. Follow a few simple steps and we’ll show you how much you could/should have in the future.
As with all investing, your capital is at risk. This calculator is not a reliable indicator of future performance and is intended as an aid to decision-making, not a guarantee.
Capital at risk. Pension rules apply
Most people in the UK can get tax relief on pension contributions up to 100% of their earnings or up to the government-set annual allowance.
The annual allowance is the amount of money you can contribute to your pensions without incurring any tax charges. For most people, the annual allowance is £40,000 for the 2020/21 tax year.
It may be lower if:
Tax relief comes in the form of government ‘top-ups’ of the contributions into your pension pot.
Everyone can get at least 20% tax relief – equivalent to the basic income tax rate – on contributions. Higher-rate and additional-rate taxpayers may be able to claim more.
If you’re not working or not earning enough to pay income tax, you’re still able to receive tax relief on up to £3,600 of pension contributions in a tax year.
By using pension carry forward, you can use any unused annual allowance from the previous three tax years to make pension contributions in the current tax year.
The lifetime allowance is a set limit on the amount that you can take from all of your pensions without having to pay any extra tax charges. The lifetime allowance is £1,073,10 for the 2020/21 tax year.
Provided you have the qualifying national insurance record, most people in the UK are able to claim a state pension.
If you’re employed, you’ve likely been auto-enrolled into your employer’s workplace pension scheme.
If you’re self-employed, or even if you already have a workplace pension, you can also have a personal pension.
A workplace pension can be set up as a defined benefit scheme or a defined contribution scheme, while a personal pension is usually operated as a defined contribution scheme.
You’ll need to work out which type of pension is right for you.
In most cases, once you turn 55 you have a number of options for what to do with the money in your workplace and personal pension pots. But you don’t have to start taking your benefits when you’re 55 – you could leave it until you’re older if you want. You could even start withdrawing from your pension and continue to work, if you wish to.
You can start claiming your state pension once you reach state pension age.
How and when you withdraw your pension will depend on your personal circumstances and your retirement goals, and whether it’s a defined contribution pension, a defined benefit pension, or a state pension.
Pensions and their rules can be confusing. It can also be tough to keep track of things if you have different pension pots with different providers.
Consolidating your pension pots into one easy-to-manage personal pension may be more convenient, allow you to keep better track of it, and should reduce your paperwork.
One combined pension could also potentially save you fees and charges, and help you assess whether you’re maximising the tax relief you’re entitled to.
Pension drawdown is a way of using your pension to maintain a regular income in retirement by reinvesting your pot in funds specifically designed and managed for this purpose.
Flexible-access drawdown allows you to have control over your pension income and to make withdrawals as and when you need to. While it doesn’t offer the option of a guaranteed income, flexible-access drawdown can be used to provide a regular adjustable income. But remember, any income or further withdrawals over the original tax-free 25% are taxable at your rate of income tax. There may also be a number of associated fees and charges associated with drawdown that you need to be aware of.
Nutmeg offers drawdown in partnership with our pension administrator Hornbuckle. If you hold a pension with Nutmeg, you’ll receive an information pack – or ‘wake up pack’ – on reaching your 50th birthday containing details of your pension. You’ll also receive a wake up pack on reaching your 55th birthday and every five years on from that point, e.g. 60, 65, 70, etc. until your pension fund is fully crystallised.
You can start drawing down from your pension from the age of 55. The first 25% is tax free and the remainder is subject to tax.
Nutmeg offers flexible drawdown, this means you’re in control as you can choose how much of your pension pot you take and when you’d like to withdraw from it.
For more information on withdrawing money from your pension, read our dedicated support page.
Our personal pension is easy to use and transparent. You can start your Nutmeg pension and initiate transfers in just minutes online. What’s more, there are no hidden fees – it’ll always be clear how much we’re charging you for our services.
It’s expertly designed
We really value transparency and we guarantee no hidden costs – we’ll always let you know exactly what our fees and charges are and how they affect your pension pot.
Nutmeg offers three investment styles for you to choose from for your pension: a fixed allocation portfolio, a fully managed portfolio and a socially responsible portfolio. All three are diversified across asset classes, countries and sectors.
If you’d prefer to invest in companies that do business in a fair and progress way, our socially responsible portfolio might be right for you – it’s over-weight toward companies with strong sustainability profiles, while avoiding those that engage in controversial activities.
A lot of effort and expertise goes into trying to make your investments work harder for you and we offer a variable pricing strategy to fit with the type of investment style you choose and the amount you invest.
Nutmeg invests and manages your personal pension. While we use a third party provider, Embark and Hornbuckle, to operate and administer the pension, you’ll only ever talk to us – we can help you with any questions and problems.
Your pension assets are held by State Street Corporation, one of the world's largest custodian banks, and Barclays Bank. This means that your money is always kept separate from Nutmeg’s assets – so if Nutmeg is ever declared bankrupt, your pension pot will still be safe.
You’re also protected by the Financial Services Compensation Scheme (FSCS) to a limit of £85,000.
But remember, as with all investing the value of your pension investments can go down as well as up due to market performance, and falls aren’t covered by the FSCS. A pension may not be right for everyone and tax rules may change in the future. If you are unsure if a pension is right for you, please seek financial advice.