This is a sponsored post and contains affiliate links
I’ve talked in the past about the fact that around 5 million self-employed Britons aren’t saving into a private pension and one of the main reason for this seemed to be because they find it confusing and didn’t know where to start looking for one – I’ve teamed up with Penfold to tell you about their app that can help you get your self-employed pension set up in minutes.
What is Penfold?
Penfold is the pension built specifically for the self-employed who believe it should be really easy to understand the key things you need to do with your pension and just as simple to actually do those things.
Who can use Penfold?
Well…actually…anyone could use Penfold if they wanted to!
It’s aimed at self-employed people (so be that a freelancer, sole trader or limited company director) as they don’t have access to the normal pensions ‘vehicles’ that you would do in a larger workplace but the Penfold Pension is actually a Self Invested Pension Plan (SIPP) which means anyone can open one!
A lot of their customers are actually employed and paying into a workplace pension but using Penfold as an extra way to save money for the future.
How does it work?
– The app will then help you work out how much to save (they have some great calculators on their website if you want to have a play around with some numbers first) and which plan is right for you.
– You then decide how you want to pay into your pension pot, you can choose direct debit or bank transfer and you can also pause or change it at any time if needed.
– Penfold will then add your 25% tax bonus each month
– You can review your progress at any time on the dashboard and play around with figures to see if you are staying on track with your goals.
Tax Bonuses = Free Money!
Have you heard of a fabulous little thing call ‘Pension Tax Relief‘?
Whenever you pay into your pension the government gives you a 25% tax bonus to top up your contribution. This means that for basic rate taxpayers, the government adds £25 for every £100 you pay in, so you only need to make a £100 contribution to add £125 to your pension pot!
Combine your old pensions
Apparently, the average UK adult will go through six job changes in a lifetime which makes for a lot of random pension pots sitting around not doing very much. Penfolds friendly customer service team can round them all up for you with just some basic information so you can combine them into your new SIPP and see all your pension money in one place!
What can you invest you in?
Penfold is partnered with BlackRock who are the worlds largest asset manager, to invest your money for you. You can choose from one of four options depending on how comfortable you are with risk (Penfold can help you decide on this but showing you different projections) and BlackRock will take care of the rest
Is there a catch?
No there isn’t a catch but like all private pension companies, there is an annual fee involved – but at the moment it is fee-free until September 2020!
Penfold has a low-cost annual fee of just 0.75% but that’s it, there are no other hidden charges (some companies have a yearly service charge type fee or exit/transfer fees)
Is my money safe?
Penfold is regulated by the UK Financial Conduct Authority, your data is secure and protected by the most up-to-date technology and processes (they strictly follow GDPR guidelines). Your pension is also protected by the Financial Services Compensation Scheme.
My experience with Penfold
I actually opened up an account with Penfold as I’ve been wanting to find somewhere to collate all my old pension pots and to start saving into regularly as my self-employed income becomes more regular.
It was really easy to set up, it took me maybe 10 minutes at most – I had to input my details including my NI number (this helps with looking up any old pensions you might have and also to ensure you’re getting the correct tax relief on money you put in) and upload a photo of my driver licence for security. I’ve downloaded the app to my phone and have been impressed with how simply it’s laid out, you don’t have tons of menus to search through to find what you’re looking for, it’s just there as soon as you log into the app and you have a singular menu option at the top with everything else you could need. With any banking/saving apps I try out I like to test the ‘Help’ function they offer, Penfold uses a remote helpdesk system which connects you with a human in around 10mins or less which is a really good response time and one of the quickest I’ve seen on a money management app.