Personal PensionFeb 23 2015

Nutmeg launches personal pension plan

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Nutmeg launches personal pension plan

Online investment manager Nutmeg has today (23 February) launched its pension plan, in response to “significant demand” and customer research.

In December last year Nutmeg announced it was set to launch a personal pension in early 2015, which would be administered by Hornbuckle.

Under the partnership, Hornbuckle provides administration technology, powered by FNZ, to service pension trustee and white-labelled client administration to Nutmeg.

The pension plan has a minimum investment of £5,000 and the pricing structure remains unchanged, with a single annual management fee of between 0.3 and 1 per cent, depending on how much customers have contributed to their funds.

There are no set-up charges, exit penalties or commission fees.

The pension also has instant 25 per cent government top-up on net personal monthly contributions, which Nutmeg claims only a few providers can facilitate.

The firm added that one-off cash contributions, alongside regular employer contributions, can also be paid into the Nutmeg pension.

The pensions are built in line with customer’s individual risk profile, primarily using exchange-traded funds managed by an in-house investment team which regularly rebalances portfolios to seek out opportunities for long-term returns.

Nick Hungerford, chief executive and founder of Nutmeg, said: “We’ve listened to our customers and delivered what they truly want. In an industry embroiled in hidden charges, fees and complexity, our transparency promise will be a welcome reassurance to customers.

“The notion of receiving bi-annual pension statements in the post is incredibly archaic. You should be able to see where your pension pot is invested and how it’s performing whenever you want.”

ruth.gillbe@ft.com