Moneybox Pension Review

as of 25/02/2021 at 12:05 pm

Our View

Nice, easy to use, simple to open an account. A dream for those who want to save without the accompanying jargon and science. But we do have some serious quibbles. Fees are not as transparent as they should be, and the service is not that cheap for some investors with smaller balances. Actual information on the investments themselves is hard to access. But on balance this is a well-executed service and fills a niche. Not an obvious pensions player – best for those who want a simple service in the saving up phase only.

Our Pension Rating

Recommended For

Beginner Investor

In a nutshell

Truly mobile-first

Super engaging

Limited investment choice

You Say

Your overall rating

Based on 46 reviews

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What to Expect

Investment Choice

Products

Stocks and Shares ISA

Junior ISA

Lifetime ISA

Investment Account

Pension

Investments available

Investment help

Robo advice / ready-made portfolios

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

The Robo-adviser that has taken the market by storm, Moneybox was the first to offer the idea of rounding up your regular investment based on what you spend on a linked account. It encourages people to build their wealth – they don’t just manage it.

The Moneybox Pension currently has three investment options: The Fidelity World Index Fund, Old Mutual World ESG Index fund and the BlackRock LifePath fund. All three are passive, cheap options with the BlackRock fund notably a ‘Lifestyle’ fund that changes the risk level of your investments as you get closer to your retirement date.

Moneybox’s platform fees for their SIPP differ to their ISA fees; there is no regular £1 per month subscription fee. Instead, it is a 0.45% charge on the first £100,000 in the account. This is reduced to a 0.15% charge for any balance above £100k. You’ll also be charged the fund provider fee, for example the Fidelity option is just 0.12%.

Moneybox do not provide any drawdown options currently, so anyone approaching retirement would need to transfer their pension to a different provider, should they wish to access it. Not a pensions specialist, this option is best for those for whom pensions remains ‘a bit on the side’.

Important Facts & Figures

Provider Size:

Small start-up but has some big friends under the bonnet

Your Questions

"I've got a Stock and Shares ISA with Moneybox. I recently invested a £5000 lump sum with them, and I'm making regular weekly investments of £75. When I invested the £5000, the share price was quite high based on the performance of the fund. I'm just wondering whether I made a mistake investing the lump sum in one go, and whether I should have drip fed it into the account in the same way as my weekly deposits? If so, should I withdraw and start to drip feed it back in?"

Tim, West Midlands

05/04/2019

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