8 cheapest pension providers for low-cost retirement saving
By Boring Money
18 Feb, 2025
Choosing the cheapest pension can often feel overwhelming with so many options, providers, and confusing fees to navigate. With platforms like PensionBee and Interactive Investor offering low-cost pensions, how can you determine which one is truly the best value?
That’s where we come in. Each year, our team of in-house investment experts put pension providers to the test, identifying the most low-cost options and separating the genuinely good value pensions from those that only look cheap on paper.
Whether you're an experienced investor or just starting to build your pension pot, keeping costs to a minimum is essential. After all, the less you pay in fees, the more your money can grow - helping you secure a financially comfortable future.
Peruse our shortlist of the pension providers with the lowest fees without compromising on the quality of service - so you can find the best and cheapest pension for you.
We’ve listed providers in alphabetical order below.
AJ Bell
AJ Bell's pension is a solid choice for those who want to take the reins of their retirement savings. With a wide array of investment options - funds, shares, ETFs, and Investment Trusts - you can tailor your pension to suit your goals.
The platform's fees are competitive, with an annual custody charge of 0.25% on portfolios up to £250,000, decreasing to 0.10% for amounts between £250,000 and £500,000, and no charge beyond £500,000. Dealing charges are straightforward: £1.50 per fund transaction and £5 for shares, with a reduced rate of £3.50 if you've made 10 or more deals in the previous month.
The user-friendly interface and robust research tools make managing your pension a breeze. As of 2025, AJ Bell continues to be a top contender for those seeking a flexible and cost-effective personal pension solution, winning three of our coveted annual awards: Best Buy Pension, Best For Low-Cost Pension <£50k, and Best For Low-Cost Pension >£50k.
AJ Bell has been developing over the last few years into a seriously credible player. They are a bigger force to be reckoned with now and are one of the best all-rounders, and competitively priced for most types of investors.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
AJ Bell Dodl
AJ Bell Dodl's pension is a good choice for those seeking a streamlined, no-fuss approach to pension investing. With a carefully curated selection of investment options - including UK and US shares, AJ Bell's own funds, and themed ETF investments - you can build a retirement portfolio without getting overwhelmed by endless choices.
The platform's fees are remarkably straightforward: a competitive 0.15% annual account fee with zero trading charges. For example, if you opt for their dedicated Pension Builder fund (0.31%), your total annual cost would be just 0.46%. Investment options range from low-cost regional ETFs starting at 0.05% to actively managed funds at 0.45%.
The mobile-first approach through their sleek app makes pension management simple and accessible. With minimum investments of just £100 lump sum or £25 monthly, Dodl is particularly appealing to younger investors starting their retirement journey. As of 2025, this streamlined approach has earned them Boring Money's Best For Low-Cost Pension <50k award!
Those who remember the launch of Dodl in 2024 may be upset to learn that the parent brand AJ Bell sent the furry monster brand to the glue factory, creating a more adult look for this pared-back service which is aimed at younger investors with fairly straightforward needs. If you only want a handful of funds and shares to choose from, a sleek app for valuations and trading, and a very decent fee, then this is well worth a look. Nice for Lifetime ISAs and ISAs for those who don't want bells, whistles, or pointless complexity.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
interactive investor
Interactive investor's (ii) pension stands out particularly for larger pension portfolios due to its fixed-fee subscription model, which can offer significant savings compared to percentage-based competitors. For example, a £200,000 pension under the Pension Builder plan would cost just £155.88 annually (£12.99/month), equivalent to only 0.078% - far lower than typical percentage-based platform fees of 0.25-0.45%.
The platform provides access to over 40,000 investment options, including UK and international shares, funds, ETFs, investment trusts, and bonds. There are two main plans: Pension Essentials (£5.99/month) for portfolios up to £50,000, and Pension Builder (£12.99/month) for larger portfolios. Existing ii customers can add a pension more economically - just £5/month extra on Investor Essentials plans or £10/month on Investor/Super Investor plans.
Trading fees are competitive at £3.99 for UK and US trades, and £9.99 for other international shares. While the platform's interface may be better suited to experienced investors, the potential cost savings for medium to large pension pots make it a pretty compelling choice for long-term retirement planning.
ii's pension offerings won two Boring Money pension awards in 2025 - Best Buy Pension and Best For Low-Cost Pension >£50k!
interactive investor has kept innovating on cost and there are good value, fixed fee plans for all types of investors and account sizes. There is good research and content and a huge range of investment choice. More experienced traders may like the community and discussions. I still find it a bit tricky to navigate and harder to use than some peers. A good option for cost-conscious investment enthusiasts.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
InvestEngine
InvestEngine's pension is one of the most cost-effective pension options in the market, particularly for those looking to invest in ETFs. The platform charges no platform fees and no trading fees - you only pay for the underlying ETF costs, which typically range from 0.10% to 0.50%.
The platform offers two routes: a DIY approach where you can build your own portfolio from over 700 ETFs, or a managed portfolio option. The managed service comes with a 0.25% management fee, plus around 0.19% for the ETFs themselves, totaling 0.44% - still competitive for a fully managed pension solution.
While winning our Best For Low-Cost Pension <50k award in 2025, InvestEngine is still relatively new and might feel basic compared to more established providers. However, for cost-conscious investors who are comfortable with an ETF-only approach, the zero-fee platform structure makes it a compelling choice.
I think InvestEngine remains a bit of a hidden secret for those more confident investors who have joined the move towards using ETFs to manage and access investments. The fees are unbeatable. I'm old enough to feel a bit cautious about smaller start-ups/scale-ups that can't compete with the big guns in terms of security and governance. But it's well worth a look for those who use ETFs and may not have looked at different platforms for a while.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
PensionBee
PensionBee is a straightforward pension provider designed for people who want an easy and clear way to manage their retirement savings. It offers a selection of plans to suit different needs, from a low-cost tracker option to a more hands-on tailored approach, giving you flexibility in how you save for the future.
When it comes to fees, PensionBee is upfront and transparent. Annual management fees range from 0.50% to 0.95%, depending on the plan you choose. If your pension pot is over £100,000, you'll pay a lower fee on that portion - halving the rate for the amount above this threshold. For example, with a £250,000 pot in the Tailored Plan, the overall fee would be just 0.49%.
One of the highlights of PensionBee is that there are no fees for transferring pensions, switching plans, or making contributions and withdrawals. This makes it an attractive option for those looking for a low-cost and hassle-free way to manage their pension, all with the added bonus of a simple, user-friendly platform.
PensionBee won three pension awards in 2025: Best Buy Pension, Best For Low-Cost Pension <£50k, and Best For Low-Cost Pension >£50k.
PensionBee continues to grow and launched in the US last year. They are an easy option for people who don’t want pension hassle, who value a nice app which shows everything clearly, and who want to consolidate various small pension pots left behind as they move jobs. It is not the cheapest solution, but the service is good and customers are happy.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
Standard Life
Standard Life’s pension offers a clear pricing structure. The main cost is a Service Charge of 0.45%, with an additional 0.10% for the Total Fund Charge when using their ready-made investment options, totalling 0.55%. You’ll also have access to over 50 investment choices, each with its own costs.
Crucially, there are no charges for transferring, switching, or withdrawing funds, which adds a level of flexibility. However, the charges can vary depending on the specific investments you choose.
Standard Life was one of the winners of the Boring Money Best For Low-Cost Pension <50k award in 2025.
Standard Life is best suited for pension savers who value stability and simplicity over sophistication and high performance. They're ideal for workplace pension holders who prefer a 'set and forget' approach, are comfortable with ready-made investment options, and don't need to frequently access or modify their pension. Think of them as the reliable family sedan of pension providers - dependable and trusted, but don't expect sports car performance or the latest features.
TILLIT
TILLIT's pension stands out for its hand-picked investment approach and innovative fee structure. Early pension adopters benefit from a competitive 0.25% flat platform fee, while standard accounts start at 0.40% but decrease by 0.01% annually until reaching 0.25% - an unusual loyalty reward that benefits long-term pension investors.
The platform offers a carefully curated selection of funds, Investment Trusts, and ETFs, rather than overwhelming choice. This makes it particularly suitable for pension investors who want pre-filtered, quality investment options with clear explanations and research backing each choice. While this curated approach might feel limiting for some, others will appreciate the expert guidance on suitable investments for a pension.
Winner of Boring Money's Best For Low-Cost Pension <50k award in 2025, TILLIT suits investors who value simplicity and guidance over endless choice. Trading is free - though you'll need to factor in the underlying fund costs alongside the platform fee. The emphasis on educational content and jargon-free explanations makes it especially appealing for those building their pension knowledge.
TILLIT feels like more of a research hub than an investment platform. It looks beautiful and the production values are high. There is a lot of nice content and detail, with good videos and graphics, but I can't quite figure out their target market. They're not simple enough for real beginners but more sophisticated investors will get frustrated because they can't see things in the way in which they have learned to. They've tried so hard to be different that it looks like a lovely magazine, but one which doesn't quite give me the info I want.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
Vanguard
Vanguard's pension is a straightforward, no-frills option that focuses on keeping your retirement savings costs down. You can pick from 85+ funds and ETFs, or let Vanguard do the heavy lifting with their Target Retirement ready-made portfolios.
The costs are pretty competitive. For DIY investors, you'll pay £4 a month if you've got under £32,000, or 0.15% a year (max £375) for bigger pots, plus fund costs from 0.06-0.79%. Want Vanguard to manage it all? That's about 0.61% all-in for the managed pension option.
You can start with £500 upfront or £100 monthly payments, and you're able to move over existing pensions too. While you won't get all the bells and whistles of pricier providers, Vanguard's pension nabbed our Best Buy Pension and Best For Low-Cost Pension >£50k awards in 2025.
Vanguard had a fantastic year in 2024 as more UK investors bought into their mantra of low-cost index investing. The service is not the most exciting in town, and the supporting content and website could use some work, but they now have a decent app to support the journey. Changes to costs mean this is not the slam-dunk on costs for smaller investors that it used to be BUT it remains a pretty good value solution for people who don't want to choose from a range of funds and shares. Its Managed ISA and pension service are the most cost-effective and these ready-made options will please people who don't know how to - or who choose not to - manage a full portfolio themselves.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
Common investing fees and charges
The cost of investing is seldom easy to understand. Different providers and different account types and different investments all come with their own fees, and it can be hard to see the wood for the trees. That's why we've broken them all down into 8 of the most common fees and charges that most UK investors will encounter when they invest. Check out the article below for our breakdown.
