IG Pension Review

as of 24/02/2021 at 5:28 pm

Our View

For those who want someone else to do the heavy lifting, IG is actually not a bad option. Charges are a bit lower than many peers. Just don’t get sucked into their silly spread betting if you’re a novice. It is very blokey in feel but don’t worry about that – go and have a try of the tools to get into a ready-made portfolio. Not an obvious pensions destination. OK in the saving up phase.

Our Pension Rating

Recommended For

Confident Investor

In a nutshell

Share dealing is available

'Ready made' options too

Low cost

You Say

Your overall rating

Based on 12 reviews

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What to Expect

Investment Choice

Products

Stocks and Shares ISA

Investment Account

Pension

Investments available

Stocks and shares

Chosen for you

Investment help

Robo advice / ready-made portfolios

Pick your own shares

Drawdown

We do not currently have sufficient feedback from investors on the drawdown experience to review the service for those in retirement. Please help us by leaving your review.

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The 'Geeky' Details

Provider details

IG has two distinct pension offerings, one as part of their share dealing service and the other within their Smart Portfolios. Both of these can be found in the ‘Investments’ section of the website.

IG’s share dealing pension is a complex choice and administered by James Hay. Those in the accumulation phase will pay a £205 annual admin fee as well as tiered platform charges (0.25% on the first £300k).

Brace yourself for their drawdown charges… Those who wish to access their pension will have a set-up fee of £120 and an annual income drawdown charge of £158. For UFPLS payments (where you take a chunk of both tax-free cash and income at once) there is a fee of £120. To transfer out of your pension it costs £150, and £100 to close your pension. There is also a charge of £150 for those who wish to purchase an annuity.

In summary – it is expensive, and we do not think this is the most obvious pension destination unless you are a dedicated trader, happy in the IG fold.

The Smart Portfolio SIPP however is a completely different proposition for those in the saving-up phase of a pension. IG have partnered with leading asset manager BlackRock, to provide 5 fully-managed, low cost portfolios. These range from conservative to aggressive in risk appetite.

IG’s Smart Portfolios have shown consistently impressive performance when compared to the market. IG charge a 0.5% management fee on the first £50k, managing any larger amount for free. With fund costs of around 0.2%, this makes the total cost of investing extremely competitive. In £ terms, this would equate to a £7 charge on a £1,000 portfolio and a £470 charge on £100,000 worth of investments.

One drawback to the Smart Portfolios is the drawdown charges, which are the same as IG's share-dealing proposition and are also administered by James Hay.

Important Facts & Figures

Provider Size:

Mid-sized investment platform

Minimum amounts: £500 minimum initial investment into each IG Smart Portfolio
£50 regular contributions can be made, after a £500 initial investment.

Your Questions

"I am 47 years old and up to this point I have ensured I have sufficient cash saved and regularly overpay my mortgage. I also have a company pension into which I pay additional voluntary contributions. I would now like to open an investment ISA for growth, with an initial figure of about £5000 and then about £250 per month (more when possible) for at least 10 years. I am tempted by the Vanguard LifeStrategy 80 due to the low fees and strong reputation. I would also consider investing in a couple of other Vanguard funds as well. Would this be advisable or relatively unnecessary, if I'm already investing in the LifeStrategy fund? I have also been looking with interest at a number of other companies including, Nutmeg, Wealthify, IG and AJ Bell Youinvest. Is there any provider that would stand above the others as most suitable in my circumstances? Whilst I would like my investment to start working without too much input from me, I would be happy to get more involved as my knowledge and understanding increase. Any insight or opinions you may have would be appreciated. Thanks."

Matt, South Yorkshire

11/03/2019

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