Personal Pension

Save and grow your investment pot for an early and joyful retirement

  • 25% top up to your pension contributions
  • No upfront costs
  • Tax free growth

With investments, your capital is at risk

Father holding baby on beach

What is a pension?

Pension is a tax-efficient way to save for your retirement. You’ll get tax relief on your contributions and you won’t have to pay tax on your retirement savings while they’re in a pension. When you’re at least 55 you can start enjoying your savings.

Tax reliefs

Receive up to 45% tax relief on your contributions and grow them tax free within pension

Annual allowance

Maximum you can contribute in a tax year is limited to £40,000 or your salary, whichever is lower

Accessibility

Private pensions may be accessed from age 55 onwards. You can enjoy up to 25% tax free lumpsum at retirement

Why choose our pension

It is a low-cost way for you to invest your capital, or make regular savings for your retirement, taking into account your investment objectives and the risk you are willing and prepared to take. You don’t have to worry about the headache of picking individual investments – we do that for you. You benefit from our investment expertise to meet your financial goals in line with your ethical values.

Leaf solid

Sharia compliant & socially responsible

We only invest in ethical investments

Active investment management

You investment portfolio is actively managed by our experienced investment team

24/7 secure online access

View your investment portfolio online

How does it work

1

Discover your investor profile

We ask you a number of questions to understand your investment objectives and risk profile

2

Choose your account

You will decide what account is suitable for you

3

View your recommended portfolio

We will recommend a globally diversified investment portfolio that best fits your needs and objectives

4

Complete your online application

You will be requested to share necessary details, including details of existing accounts you are transferring

5

Fund your account & let us manage your investments

Login in to your account to transfer lumpsum or setup regular contributions. Once your account is funded, our Investment Manager will buy investments and actively manage your investment portfolio

6

Keep your investments on track

Login into your account to complete the risk assessment after 180 days to ensure your investments are on track

Our online advice service provides simplified investment advice which means it is limited to the specific amount of money you are investing through this service. This service may be suitable if you have a minimum of £1,000 available to invest over a minimum period of 3+ years. For those investing £50,000+ or those who wish to receive professional financial advice on existing investment arrangements should consider our comprehensive personal advice service.

Combine your pensions

Throughout your lifetime, you may have worked for several employers to further your career prospects. ‘Job for life’ for many is not an option as you move up your career ladder to achieve broader experience and off course better remuneration. As you change jobs more frequently during life, you may have accumulated a number of small pensions along the way. It can be hard to keep track of all the pension plans and difficult to really know how much your total retirement benefits is worth. As a result, many individuals like you may have found your pension plans becoming increasingly fragmented therefore in most cases being left unmanaged in an increasingly volatile market.

At Simply Ethical, our pensions consolidation and management service helps you get the maximum benefit from pension arrangements left behind with your previous employers. Consolidating all your pensions with one provider may help reduce charges, increase investment options and make it easier to administer. We can help by reviewing your existing circumstances and advise whether or not it is in your best interest to consolidate.

An example of how this works:

Mr Ali has worked with 2 previous employers where he has his pensions. In addition, he has 2 personal pensions (SIPPs) with different providers. Our Financial Adviser will understand Ali’s objectives, personal circumstances and review each pension plan, if deemed suitable for him he may be advised to transfer all these pensions to one pension plan recommended by Simply Ethical Financial Adviser. Our Financial Adviser and Investment Manager will work together to devise a suitable investment strategy that works for Ali. The investment portfolio will be actively managed on a discretionary basis.

Portfolio and performance

At Simply Ethical we aim to help clients make their wealth work for them. We are keen to see the value of your investments go up in the long term so that you meet your life objectives that are important to you – Whether that’s saving for a deposit on your first home, paying kids university fees or provision for your retirement years.

Our online advice service consist of seven investment portfolios with Defensive being the least risky portfolio and Progressive Growth being the highest risk portfolio. The 5-year average annual investment return for the period of March 18 2016 to March 19 2021 range from 3.2% to 12.8%, depending on the portfolio.

Average annual investment return over 5 year period

Note: Back-tested data used for performance before 30/05/2019. Actual performance data shown from this date onwards. Performance as at 19/03/2021. Performance figures are shown in Pound sterling (GBP). The returns do not account for the effects of inflation or tax or adviser charges. Please remember past performance is not a guide to future returns. As with any investment, your capital is at risk.

Cash
11.6%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
73.4%

Franklin Global Sukuk Fund
Oasis Crescent Global Short Term Income Fund
Oasis Crescent Global Income

Global Equities
10%

iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious metals
5%

WisdomTree Physical Gold

Risk profile: You tend to prefer investment portfolio with low risk of a decline in value. You are prepared to accept only a limited risk of loss to your capital. As a result, you will mostly invest your money in short term money market instruments and bonds. You are prepared to take very small level of risk with your capital for the prospect of modest growth than that obtainable from cash in bank account and short term money market instruments. A small proportion of portfolio may be invested in growth assets like property, equities and commodities. This adds an element of risk to your investment but aims to provide some investment returns in the long term. You would like to maintain the real value of your investments against inflation. However, you accept that inflation may erode purchasing power of your capital overtime, particularly if inflation is high.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
68%

Franklin Global Sukuk Fund
Oasis Crescent Global Short Term Income Fund
Oasis Crescent Global Income

Global Equities
25%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
5%

WisdomTree Physical Gold

Risk profile: You are conservative with your investments. However, you do recognise that in order to achieve higher returns, some risk must be incurred and you are prepared to tolerate some fluctuation and volatility in your investment. You are likely to be concerned about the possibility of losing money on your investments, but you do not want to completely ignore the possibility of making higher returns than are offered by bonds and short term money market instruments. You will have your money invested mostly in bonds and short term money market instruments. Your portfolio may have a sizable proportion invested in growth assets like property, equities and commodities.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
58%

Franklin Global Sukuk Fund
Oasis Crescent Global Income

Global Equities
33.5%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
6.5%

WisdomTree Physical Gold

Risk profile: You are relatively cautious with your investments. You realise that risky investments are likely to be better for longer term returns. You want to try to achieve a reasonable return, and are prepared to accept some risk in doing so. You may have over half of the portfolio invested in bonds and short term money market instruments. The rest of the portfolio may be invested in growth assets like property, equities and commodities. You are prepared to tolerate relatively modest yet frequent fluctuations in value.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
46%

Franklin Global Sukuk Fund
Oasis Crescent Global Income

Global Equities
44.5%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
7.5%

WisdomTree Physical Gold

Risk profile: You are balanced in your attitude towards risk. You don’t seek risky investments but you don’t avoid them either. You understand that you have to take investment risk in order to be able to meet your long term goals. You are likely to be willing to take risk with part of your assets. You are prepared to accept fluctuations in the value of your investments to try and achieve better long term returns. You are prepared to accept small losses, particularly in the short term, to gain higher returns than simply investing in low or medium risk investments. You may have around half of your portfolio invested in a balanced mix of lower and medium-risk investments such as bonds and the other half invested in higher-risk investments such as property, equities and commodities. You are prepared to tolerate frequent and at times significant fluctuations in value.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
33%

Franklin Global Sukuk Fund

Global Equities
55%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
10%

WisdomTree Physical Gold
WisdomTree Physical Precious Metals

Risk profile: You have above average tolerance to risk. You are relatively comfortable with investment risk. You aim for higher long term returns and understand that this can also mean some sustained periods of poorer performance. You are willing to place reasonable emphasis on growth investments like property, equities and commodities and you are aware that these are liable to fluctuate in value. Typically, equities may compose over half of your investment portfolio. You are prepared to accept large fluctuation in value to try and achieve better long term returns.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
13%

Franklin Global Sukuk Fund

Global Equities
72.5%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
12.5%

WisdomTree Physical Gold
WisdomTree Physical Precious Metals

Risk profile: You have higher tolerance to risk. You are relatively comfortable with investment risk and willing to take risk with a large proportion of your assets. You aim for higher long term returns and understand that this can also mean some sustained periods of poorer performance. You are willing to place emphasis on growth assets like property, equities and commodities and are aware that these are liable to fluctuate in value. Your portfolio will have higher weighting towards growth assets and very low levels towards bond. Typically, equities and commodities may compose over two thirds of your investment portfolio. You are prepared to accept significant fluctuation in value to try and achieve better long term returns.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
0%
Global Equities
83%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
15%

WisdomTree Physical Gold
WisdomTree Physical Precious Metals

Risk profile: You are very comfortable with investment risk. You aim for high long term investment returns and do not overly worry about periods of poorer performance in the short to medium term. Your portfolio is likely to have high market volatility and carries higher risk of potential loss of capital. You would like to take advantage of growth assets like bonds, equities and commodities with the prospect of good long term returns. As a result, your portfolio will exclusively invest in growth assets. Your portfolio can be subject to the full extent and frequency of stock market fluctuations.

Our fees

We only charge an annual fee that is tiered within bands as follows:

For the first £50,999

0.75%

per year

Between £51,000 and £100,999

0.70%

per year

Between £101,000 and £250,999

0.65%

per year

Between £251,000 and £1,000,000

0.40%

per year

Over £1,000,000

0.25%

per year

  • No set-up fees
  • No trading or dealing fees/costs
  • No transfers or withdrawal fees/ Free transfers in and out
  • No exit fees

Fees and charges will be deducted from your account at the end of each month in arrears.

Each investment portfolio consists of collectives investments including funds and ETFs, which have their own annual management charges. On average, for a given portfolio the overall underlying fund fees are estimated to be approximately between 0.54% and 0.70% per annum. The underlying charges for a portfolio may change from time to time, depending on the underlying investments. Before you sign up, our online application will share all the charges so that it’s crystal clear.

Transfer to us

Step 1

Complete application

This should take no more than 15 minutes if you have all of your information to hand*

Step 2

We’ll contact your current provider

Upon receipt of your application we will contact your current provider and make neccessary arrangements. The process normally takes up to 30 days but can take up to 6 weeks depending on your current provider.

Step 3

Access your account

Once your money has been transferred to your Simply Ethical account, we will let you know by email.

Step 1

Login to your personal dashboard

Once you are logged in, please click on ‘Deposit & Withdraw’, then choose the ‘Account Transfer’ section and complete the form with transfer details.

Step 2

We’ll contact your current provider

Upon receipt of your application we will contact your current provider and make neccessary arrangements. The process normally takes up to 30 days but can take up to 6 weeks depending on your current provider.

Step 3

Access your account

Once your money has been transferred to your Simply Ethical account, we will let you know by email.

*What you’ll need to hand:

  • Your existing plan number(s)
  • Details of your existing investment or pension provider(s), including provider name and address
  • Your bank details
  • Your National Insurance Number

Should you need any help, please contact us.

Frequently Asked Questions

Our online investment advice service simply asks you a number of questions to understand your investment objectives and risk profile to then allocate you to a suitable portfolio of investments that are managed by us on an ongoing basis as your appointed Discretionary Investment Manager. We simply provide electronic investment portfolio recommendations using the information you have provided us. It is therefore extremely important that you provide us with accurate information about your personal circumstances.

This service provides simplified investment advice which means it is limited to the specific amount of money you are investing through this service. The service does not advise on suitable account type (GIA, ISA, JISA, Pensions) to hold your investment portfolio. Moreover, the online advice service does not offer a full or broad assessment of your financial circumstances or consider any existing arrangements (investments, ISAs or pensions) you may have. The service may suit those who wish to self serve and have decided that they do not want a full advice service.

This online service may be suitable if you have a minimum of £1,000 available to invest over a minimum period of 3+ years. For those investing £50,000+ or those who wish to receive professional financial advice on existing investment arrangements should consider our comprehensive personal advice service.

A pension is a savings plan designed to help you save for your retirement in a tax efficient manner. A personal pension offers up to 45% tax relief on contributions. Any investment gains that arise from personal pension are free from income, dividend and capital gains tax.

If you are self employed, or your employer does not have a company pension scheme, a personal pension could be the right way to save for your own retirement. Personal pension can also be used to top up the benefits you will receive under a company pension scheme.

A personal pension could be right for you if you:

  • Are looking to build up a pension fund in a tax-efficient way
  • Are prepared to commit to having your money tied up, normally until at least age 55 (but set to go up to 57 from 2028)
  • Understand that investment growth is not guaranteed
  • Are looking to build up a portfolio of investments

It may not be suitable if you:

  • Want unrestricted access to your money, or
  • Wish to invest directly into assets, such as commercial property, that are not available through this personal pension.

Fundment is the platform provider selected by Simply Ethical to deliver its Simplified Advice Online service. Fundment Limited is the pension provider. Fundment is authorised and regulated by the Financial Conduct Authority (FCA) 732727 and registered in England and Wales 08884918.

To open an account, you must be:

  • At least 18 years of age.
  • Resident in the United Kingdom
  • If you are a parent or legal guardian of a child under the age of 18, you can also apply for a Junior Pension on their behalf. (Junior Pension is not currently available through online advice service)

The minimum investment to open an account is £5,000. This can be in the form of new pension contributions or transferring existing pension(s).

Fundment is the platform provider selected by Simply Ethical to deliver its Online Advice service. Fundment will hold your money as Client Money in accordance with the FCA Rules which, among other things, require Fundment to hold your money in a designated client bank account, in compliance with the FCA Rules. This means, amongst other things, that the Client Money Bank will hold your money in a designated client bank account which is an account kept separate from Fundment’s own funds.

No interest is paid on cash.

There is no limit to the amount of contributions that can be paid, but tax relief is only available on contributions if you are a ‘relevant UK individual’ (i.e. if you are under the age of 75 with earnings chargeable to UK income tax and/or you are a UK resident for tax purposes). You receive tax relief on contributions up to £3,600 gross each year, if you are a UK resident for tax purposes but have no taxable earnings. You can pay in more than this and still receive tax relief and the maximum is based on the lower of your UK Relevant Earnings and the Annual Allowance (set by HMRC).

The Annual Allowance is currently £40,000 gross. The Annual Allowance applies as a total limit on personal tax relief across all of your registered pension schemes in a tax year. It covers:

  • Your personal contributions;
  • Employer contributions made on your behalf; and
  • Any increase in the value of retirement benefits you may earn from a final salary/defined benefit pension arrangements.

The Annual Allowance does not apply in the year of death or where benefits are taken early as a result of “serious ill health”. The Annual Allowance does not include transfers in from other pension arrangements as they have already qualified for tax relief when the contributions were originally invested in a pension scheme.

Your annual allowance may be lower if you have income above £240,000 (Tapered Annual Allowance may apply) or if you have flexibly accessed your pension (Money Purchase Annual Allowance applies). Moreover, you may be able to ‘carry forward’ unused allowance from the last three tax years to increase your limit for the current tax year. Carry forward relief is not available when the Money Purchase Annual Allowance (MPAA) applies. Please read the relevant section for more information.

Contributions can attract tax relief as outlined below:

  • If you are a relevant UK individual and are not earning, you can pay up to £3,600 gross contributions (i.e.before tax relief) per annum, which means you can pay a net contribution of up to £2,880 (being the amount after adjustment for basic rate tax relief at 20%). The pension provider will claim the basic tax relief from HMRC on your behalf and invest it in your pension account.
  • If you are employed or self-employed, you pay contributions net of basic rate tax. The pension provider will claim basic rate tax relief from HMRC and invest it in your scheme.

It should be noted that claiming tax relief generally takes between six and ten weeks. Tax relief monies can only be invested once they have been received from HMRC. If you are a higher rate taxpayer, you can claim the extra tax relief through your self-assessment tax return.

It’s the total that you, your employer and anyone else making payments on your behalf can together pay in or build up in any one tax year across all registered pension schemes in your name. It limits the personal payments on which you can actually claim tax relief. For 2020/21 the standard Annual Allowance is £40,000, unless you are already taking money out from a pension, when it is more likely to be £4,000 i.e. Money Purchase Annual Allowance (MPAA) for 2020/21.

The Annual Allowance applies as a total limit on personal tax relief across all of your registered pension schemes in a tax year. It covers:

  • Your personal contributions;
  • Employer contributions made on your behalf; and
  • Any increase in the value of retirement benefits you may earn from a final salary/defined benefit pension arrangements.

The Annual Allowance does not apply in the year of death or where benefits are taken early as a result of “serious ill health”. The Annual Allowance does not include transfers in from other pension arrangements as they have already qualified for tax relief when the contributions were originally invested in a pension scheme.

Your Annual Allowance may be lower if you have income above £240,000 (Tapered Annual Allowance may apply) or if you have flexibly accessed your pension (Money Purchase Annual Allowance applies). Moreover, you may be able to ‘carry forward’ unused allowance from the last three tax years to increase your limit for the current tax year. Carry forward relief is not available when the Money Purchase Annual Allowance (MPAA) applies. Please read the relevant sections for more information.

You can access your SIPP at any age from age 55 (but set to go up to 57 from 2028). You may also take benefits earlier if you suffer illness or an accident which leaves you permanently unable to carry out your current occupation and you cease that occupation.

Please ensure you have added your beneficiaries through your online account. On receipt of a certified Death Certificate by Fundment, all funds will be moved to cash at the date of notification, and on-going adviser charges stopped.

Death claims for all products, other than SIPPs, will only be settled after probate or Letters of Administration is/are received by Fundment and to the payee as instructed on a claim form approved and signed by the Executors or Administrators.

Previously notified nomination of beneficiaries’ instruction will take precedence. The money will remain invested until such time as a Death Certificate is received.

Fundment will write to your beneficiaries setting out the options available to them which include:

  1. Taking out cash lump sum
  2. Buying an annuity from an annuity provider
  3. Flexible income through Drawdown pension

Yes, you can transfer out to another provider as long as the provider is HMRC approved. You should consider speaking to your financial adviser before making a transfer.

You are able to change your mind within 30 days of opening your account and receiving your illustration document. Any fees charged during this period will be refunded to your account.

Start investing with Simply Ethical

Cost-efficient investment advice at the touch of a button, full visibility of your investments, and an investment adviser on the phone.