Moneybox Pension New

awchalmers79

Hi,

Moneybox released their new pension scheme today. They're asking me to transfer my other pensions but because they're quite new, it feels risky to me.

Thanks
Allan

bowlhead99

For the moneybox pension, the annual platform fee for balances up to £100k is 0 45% of the assets under management, which is the same price as charged by the 'reassuringly expensive' Hargreaves Lansdown for their self invested pension product, a FTSE100 company with a million customers and tens of billions under management.

There seems nothing significant to be gained here by going for the unknown newcomer which doesn't yet make any profits and which like any start-up firm may go bust in a couple of years because they run out of funding, causing you a hassle to move elsewhere again.

On top of the 0.45% to use the moneybox platform, you still have to pay the management fees/operating costs of the investment funds which you hold on the platform. Moneybox suggest those costs would be in the range of 0.12% to 0.30%. You can buy mixed asset portfolio funds in that sort of price range via HL, or via several of their mainstream rivals - whose platform fees can typically be less than the 0.45% level unless you have a really low value of pension.

SonOf

That makes moneybox more expensive than an IFA on a transactional basis. Let alone a simple DIY option.

tizzle6560

Glad I caught this thread as was considering it, as they're also offering shares if you transfer your pension over