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The Penfold pension explained

Penfold
Monday 24th June, 2019

Penfold is the modern, flexible pension built specifically for how we live and work today.

We have created an alternative to traditional pension companies, allowing our customers to set up, manage and track their pensions online with minimal jargon and zero paperwork.

With Penfold you can:

• Figure out how much you need to be saving

• Set your pension up in just 5 minutes

• Choose where the money in your pension is invested

• Get tax relief on your pension contributions

• Pause your contributions when you need too

• Pull multiple different pensions into one place

• Track how much you have saved and what that will mean in the future

• Top up your savings with extra cash in a good month

What’s Penfold?

Penfold is a new, simple and easy pension. We’re a digital alternative to traditional pension companies, and we allow our users to set up, manage and track their pensions online. We’re specifically built with freelancers and the self-employed in mind.

How old is Penfold?

Penfold was set up in May 2018, and became regulated by the Financial Conduct Authority in May 2019. The Penfold beta launched in June 2019.

How do I set up an account?

We wanted to make pensions incredibly easy and simple to set up, so sorting out your pension with Penfold should take less than 10 minutes and can be done in one go, online. We will need to verify your identify, so you’ll need a national insurance number and UK bank account as well as a UK address, and UK tax-payer status.

Is there a minimum amount I need to pay in?

We think pensions are inaccessible enough as it is, and high minimum contributions only put people off saving. You can open a Penfold pension with just £1 a month.

Does Penfold charge fees?

Yes, each Penfold customer pays a single fee of either 0.75% (for BlackRock’s funds), or 0.88% (for HSBC’s Shariah compliant fund) per year based on the average value of their pension that year. We don’t charge our customers to pause, stop, increase, decrease, top up or consolidate pension pots. We’ve outlined why we charge a single fee and what it covers in this article. We’ve outlined why we charge a single fee and what it covers in this article.

Can I start & stop contributions without a penalty fee?

Yes, you can top up, pause or stop at any time, and increase/decrease your monthly contributions. All of these actions are free of charge.

So I can add lump sums to my Penfold pension?

That’s right - you can make a transfer into your Penfold pension at any time, free of charge.

Can I transfer my existing pensions to Penfold?

Absolutely. We help customers find and combine previous pension pots. We know it can be hard to remember past employers’ pension providers, so all we ask is that you give us as much information as you have. If this doesn’t prove to be enough to go on, we’ll get in touch and work through the details together. There is no cost for customers using this service.

What tax benefits are there to the Penfold pension?

The Penfold pension is like any other pension scheme, in that your contributions are eligible for tax relief. Tax relief is the money the government gives you as a reward for paying into a pension, and can be beneficial for both individuals and limited companies to receive. Penfold organise your tax relief for you with HMRC, and add it automatically to your pension pot.

Can I pay into Penfold from my limited company?

You can indeed – all you need to do when setting up your Penfold account on behalf of your company is enter the company’s bank details, rather than your own personal details, and add the company number. Contributions into your pension will come from the company’s account instead of your own, and you will be able to save on your corporate tax.

Can my employer make contributions to my Penfold pension?

Not yet – but we are planning on developing this option in 2020. If you’re a freelancer with a limited company, you can make contributions from your limited business, and save on your corporate tax. Read more about how paying into a pension can be rewarded with tax relief.

Does Penfold give advice?

We are not an advisory body so we can’t provide personalised advice about your pension. However, we can help you calculate how much to save into your pension based on three generally accepted rules of thumb: the rate of economic growth, the likelihood of inflation over time, and a comfortable living costs for retirees. We want to make pensions accessible and easy to understand, and empower our users to make the best financial decisions for themselves. If you think you would benefit from financial advice, you should seek out an independent financial advisor.

Should I use Penfold if I already have a workplace pension?

If you have a workplace pension at your current job, your employer will likely contribute to your pension as well, and if you stop paying in, they might stop contributing as well – so you would lose that free money. Some workplace providers charge high fees for making extra contributions beyond the minimum required under auto-enrolment legislation. If you want to pay more than the minimum, you should check the fees to understand if it might be better to pay into a separate, private pension, like Penfold.

If you have old pension pots from old jobs, but your employer is no longer paying into them, Penfold is absolutely for you. You can have a Penfold pension and still keep these old pension pots, or you can ask us to combine them into one place.

What happens if I have a problem with my Penfold pension?

Our friendly customer service team is available to speak to on online chat every weekday from 9am to 6pm. You can also email us anytime at hello@getpenfold.com.

Find out more about pensions in the general FAQs, and refer to the glossary for any unfamiliar terms.

 Create an account with us today and start saving for your future.

With pensions, as with all investments, your capital is at risk and the value of your pension with Penfold may go up as well as down. You may get back less than you put in.

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