Pension FAQ

Can I transfer any kind of pension into Nutmeg?

You can transfer SIPPs, personal pensions and most workplace pensions to Nutmeg, so long as you haven’t started to take income from them – also known as ‘draw down’. We can’t accept transfer of defined benefit, or ‘final salary’, workplace pensions right now.
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Does the government pay in to my Nutmeg pension?

The government adds 25% of any contributions you make to your pension pot, up to the value of your total annual earnings. So, if you pay in £10,000 for example, the government will add £2,500. One of the big advantages of a Nutmeg personal pension is that we will add this amount to any regular contribution you make straight away out of our funds so you get to benefit from having the money invested in your pension pot as soon as possible. If you pay 40% or 45% income tax you may be able to claim back even more from the government by filling in an annual tax return form.
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How long does it take to transfer a pension to Nutmeg?

The majority of pension transfers take 2-3 weeks in total to complete. Some can take around three months, depending on your provider. We’re in the process of creating a pensions transfer list to help give you an idea of how long your transfer is likely to take.
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I can’t find my pension information - what should I do?

You’re not the only one. The government provides a handy Pension Finder service for just these occasions.
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How much should I save into my pension pot?

This is a very common question. How much you need to save for your retirement, or how long for, is a very personal decision and is dependent on a number of factors: your age, how much you have saved already, the lifestyle you want in later life, when you plan to retire and your personal circumstances. We have several articles on our blog that might help you. You could try Are you saving enough for your retirement? and our Pension calculator for a start.
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How much can I expect to get back?

When you start a Nutmeg pension we show you a forecast of how much you might accumulate over time, based on the information you entered. The figures are designed to give you a clear picture of what you might get from your pension pot as you approach retirement. They're shown in today's money after inflation of 2.5% and after subtracting an annual management fee of 1% including VAT. Our actual starting management fee for pensions is lower at 0.75% including VAT.

We calculate the expected average returns for each pension pot portfolio, as well as the spread of likely outcomes, using historical data. We look at the estimated returns for a portfolio of equities and government bonds in different percentages depending on the portfolio risk level. In general, the higher the risk of a portfolio the greater the proportion of equities — both in the UK and overseas — and a higher level of expected return.
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How much do you charge for managing my pension?

Nutmeg pensions are fully managed portfolios. Across all fully managed portfolios in your Nutmeg account, including VAT you pay 0.75% on your first £100k and 0.35% for everything beyond. Fixed allocation portfolios are not available for a Nutmeg pension. Any underlying fund costs that are incurred as part of managing your investments are passed on without commission and we keep these as low as we can to help you benefit from better net returns. Find out more about our fee
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How do you invest the money I put into my pension?

At Nutmeg we build intelligent portfolios that hold many different types of investments in many countries and industry sectors in order to help spread risk and the opportunity for good investment returns. We typically use exchange-traded funds (ETFs) to invest your money as they are a good, low-cost way of giving you exposure to a large number of investments. We constantly monitor and track the global markets in line with your portfolio and will make adjustments to your investments as we endeavour to improve your net returns.
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Can I transfer out of Nutmeg if I’m not happy?

Yes, you can always transfer your Nutmeg pension to another provider. Sometimes our life circumstances change and we believe our customers should have the freedom and flexibility to make changes to their investments as they wish. If you do choose transfer your pension out of Nutmeg, always check with your new provider first to make sure you’re not losing out on any pension benefits as a result of switching or paying additional charges you may not be comfortable with.
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Can my employer also pay into my Nutmeg personal pension?

If your employer currently makes contributions to a personal pension, the answer is most likely yes. If your employer is not already set up with Nutmeg, get in touch and we can provide you with the details you’ll need to give to your HR department. Remember, you’ll need to complete the set-up of your Nutmeg pension account as well.
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Does Nutmeg have a SIPP? Is the Nutmeg pension a SIPP?

SIPP stands for Self-Invested Personal Pension. Strictly-speaking the Nutmeg personal pension isn’t a SIPP because we make the investment decisions on your behalf — that is, you don’t ‘self-invest’ it. But apart from that technicality, the Nutmeg pension works very much the same as a SIPP.
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How often do I get statements?

You can log in whenever you want to see where your pension pot is invested and how it’s performing. Your online account will show you which investments you hold, how your pension has changed in value over time and a breakdown of our management fee and any underlying fund charges. We will also send you a valuation twice a year.
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What are my options when I reach retirement age?

When you reach 55 you can usually take up to 25% of your total pension pot tax free. With your remaining pension you can then use it to ‘buy’ a guaranteed income — known as an annuity — for the rest of your retirement years. Or, you can leave it invested in the stock market and take an income from it as it (hopefully) grows in value — known as ‘drawdown’. The annuity gives you a fixed guaranteed income whereas the drawdown will vary depending on the performance of your investments.

With the pension rules introduced on 6 April 2015 you now have greater flexibility in how you choose to use your pension pot when you reach 55. Take a look at our article, Pension changes 2015-16 explained, for more information.
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Why do I get 25% top-up when the basic tax rate is 20%?

This is a common query. It is simply a nuance of how you view the calculation. Basic rate tax is indeed 20% on your salary. So for each taxable £100 you earn, the basic rate of tax you must pay is £20. But to accumulate £100 in your pension pot, you pay in £80 and the government pay back the £20 in tax relief. And £20 is of course 25% of £80.

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Does Nutmeg work with a pension operator?

Your Nutmeg personal pension is invested and managed by Nutmeg. The operator and administrator is Hornbuckle and the trustee is Embark Trustees Limited, a Hornbuckle company. But all contact you receive will be through Nutmeg who can answer any questions you may have.
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Please bear in mind
The value of your pension can fall as well as rise and you may get back less than you invest. Pension rules apply and tax rules may change in future. Please note that during any transfer, your investments will be out of the market. If you need help with pensions, seek independent financial advice.