Online investment platform Wealthify has entered the pensions market with a self-invested personal pension launched in partnership with Embark.
The Wealthify personal pension offering, launched today (March 4), allows savers to set their own level of investment risk as well as giving them the option to invest in ethical funds.
Wealthify’s investment team will then choose the investments and build the pension based on the client's selected level of risk.
Payments into the pension are flexible so clients can decide whether they want to commit to a regular monthly direct debit or top up on an ad hoc basis.
Clients are able to open a Sipp with a minimum investment of £50.
Wealthify charges an annual fee of 0.6 per cent for managing the investments but there are no other fees for transferring or setting up.
The pension is only available on an accumulation basis at the moment but Wealthily is planning to develop a drawdown facility in due course.
The Sipp will be available both on an app and online dashboard where individuals will be able to see what their funds are invested in as well as how the investments are performing.
Wealthify pre-funds the tax relief from the government so individuals do not have to wait for HM Revenue & Customs to pay it in.
Wealthify has partnered with Embark Group, which is providing the technology and retirement solution to run the Sipp.
Michelle Pearce-Burke, chief investment officer and founder of Wealthify, said: “To create a stand-out pension, we had to find a provider who fitted our values and could match our high level of tech, offering a user-friendly, digital solution for our customers.
“Embark ticked all of those boxes and our companies had the right cultural alignment to make this project a success. Their service has allowed us to deliver what I feel is the slickest end-to-end customer experience on the market for pensions, without making us prohibitively expensive.”
She added: “People’s current pension provisions are often inadequate to rely on for a comfortable future, and due to the complexity and jargon, people often have no idea how to take the necessary steps to get their pension on track.
“Pensions have traditionally been confusing, inaccessible and overwhelming. So, for many people, taking control of their retirement planning can feel like a daunting task, especially with the increasing number of workplace pensions to keep track off.
“We designed the Wealthify Pension to break this inertia and help people take saving for retirement into their own hands. Our service is fully online and is easy to use and understand – something that’s often missing with traditional providers.”
amy.austin@ft.com
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