When you are in your twenties, thinking about securing your old age with a pension seems to be such a long time ahead. It is easier to live for today and not be worrying about something so far in the future.
But when you hit 40, your pension doesn’t feel so far ahead anymore, and that forward planning begins to feel very important, almost a necessity. I have some savings courtesy of a superannuation I paid into for 12 years, but nothing else in terms of a pension, and with a child and yet another birthday passing, it suddenly feels like I need to sort something.
I have recently been looking at some of the pension plans offered by Nutmeg. They promise ‘an easy-to-use, intelligent personal pension’. With Nutmeg, you are offered the option of setting up a brand new pension, or of transferring any existing pension pots into one Nutmeg pension in order to keep all your policies and accounts in one place.
With Nutmeg, you can start your pension with as little as £5,000, and then pay into it when you want to. Accounts are online, so you can access them day and night, not having to worry about brokers or call centres. In addition, if you are a UK basic rate taxpayer, the government will add 25% of any amount you put in (up to £40,000 per year.)
What I like about Nutmeg is that they basically do all the work for you, and manage your account. They take an annual fee of between 0.3 – 1% (inc VAT). This is a very reasonable rate for a fully managed personal pension plan. You can then continue to save until you decide to draw your pension. (You have to be 55 though in order to draw your pension.)
Pensions are a very personal choice, and any investment comes with risks, but if you are starting to think of your future, and have decided to take out a personal pension, then it is well worth taking a look at the options on offer at Nutmeg.