Pension

With investing, your capital is at risk.

What is a pension?

A pension is a long-term investment that is primarily designed for retirement. A Self-Invested Personal Pension (SIPP), can be used to supplement your workplace pension or transfer existing pension pots to help your money work harder. One of the benefits of a SIPP is that it can hold a wide range of investments.

The good news is that the government provides tax relief on pension contributions, so for every £1,000 you put into a pension, £1,250 is invested for a basic rate tax-payer.

As a general rule, the maximum you can save and benefit from tax relief is limited to 100% of your earnings up to £60,000, or £3,600 each year if this is more than you are earning; this includes any contributions to a workplace pension (by you or your employer).

Your pension savings grow free of income and capital gains tax.

You may be required to pay income tax on any withdrawals however this will depend on your personal circumstances.

Finally, when you retire, you can choose whether to keep your pension invested or whether you would like to draw down either lump sums or a regular income. This is known as drawdown.

Before you can access your Investment Champion pension, you will need to take financial advice to access your money.

Here are some questions you may wish to consider before investing in a SIPP...

Is my money safe?

Investment Champion uses a range of fund providers and your money is protected by the Financial Services Compensation Scheme up to £85,000 per provider.

I am already drawing down my pension, can I move it to you?

Unfortunately, not at the moment. We are only able to provide a pension for those saving for retirement. You may be better speaking to a financial adviser.

Will I have to pay tax on my pension income when I retire?

Under the current rules you can usually take the lower of up to 25% of the total value of your pension plan or £268,275 as a tax-free lump sum. Some people may be eligible to receive a higher amount of tax free cash.

How can I access my money?

Under the current rules, you can take a tax-free lump sum of up to 25% of the total value of your Under the current rules you can usually take the lower of up to 25% of the total value of your pension plan or £268,275 as a tax-free lump sum. Some people may be eligible to receive a higher amount of tax free cash.

You could buy an annuity which provides you with a guaranteed income for the rest of your life.

You could choose to keep your pension fund invested and draw an income directly from your pension - this is called a drawdown arrangement.

Now that there are more options available at retirement, you may wish to speak to a financial adviser to help work out what's best for you and your personal circumstances.

When can I access my money?

The earliest you can withdraw any money from your pension is age 55 and there are proposals currently being considered to increase this to age 57 from April 2028. Please bear this in mind before investing in a pension.

What if I am a higher or additional rate tax-payer?

You may be able to claim more tax relief through your self-assessment return or an adjustment to your tax code.

Can I transfer my existing pensions?

Yes. You may find it easier to manage all your pensions if they are in one place. However, if you are a member of a defined benefit (final salary) pension scheme, we recommend speaking to a financial adviser before proceeding.

Annual limit

Restricted access

Tax relief on contributions

Tax-free lump sum

Tax-free growth

Withdrawals subject to tax

How much can I invest?

You can invest a minimum of £100 per month or a minimum lump sum of £1,000 - or both - it's up to you!

Please be aware that a pension administration charge of 0.10% per year is applied by Hartley (minimum £15 + VAT, maximum £50 + VAT per year) and you may want to bear this in mind for lower value investments.

Let's get started

Your investment choice

Choose a style of investment to suit your needs. You may want to consider how long you plan to invest for and how much you would like your money to grow. It is also important to understand what movement in value you may or may not be happy with, and any potential losses that may happen.

Please note: A pension is a long-term investment. The value of an investment may go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

Your investment style

Investing in the future of the planet or investing in more traditional funds, it’s your choice.

Traditional

Investing the more traditional way. We have created an original range of portfolios made up of well known providers designed to grow your money.

Because the future of your money matters.

Create my traditional plan

Sustainable

Investing that has a positive impact on society. We have created a range of portfolios that only invest in companies that are socially responsible and treat people and the environment with respect.

Because the future of our planet matters.

Create my sustainable plan

Risk level

Very cautious

Minimising loss is the priority. You are only prepared to take very little risk to make cash returns. You accept that your investment will lose value due to inflation. To see the best available cash savings rates click here.

Cautious

Limiting loss is important but you are prepared to take some risk to match or beat cash returns. Relatively small movements up and down in value are acceptable. Losses may occur.

Balanced

Limiting loss is less important to you than making gains and you are prepared to take a moderate amount of risk to achieve growth above cash returns. Frequent movements up and down in value are acceptable. These fluctuations may be significant and relatively large losses may occur.

Dynamic

Making gains is more important to you than limiting loss and you are prepared to take a moderately high amount of risk to achieve higher growth. Frequent movements up and down in value are acceptable. These fluctuations will be significant and sizeable losses may occur.

Adventurous

Making significant gains is a priority and you are prepared to take a high level of risk. Frequent movements up and down in value are acceptable. These fluctuations will be significant and substantial losses may occur.

Speculative

Maximising returns is the priority. The risk of substantial losses and substantial movements up and down in value are acceptable, with the aim of achieving the highest growth possible. Speaking to TPO may be more appropriate for your needs.

Find out more

Your top 3 FAQs

Can I transfer my existing ISA?

Yes. You can transfer your existing Cash and/or Stocks & Shares ISA held with other providers into our ISA. When you apply, you will have the opportunity to instruct us to transfer your account. Upon this instruction, we will request for your existing holdings to be sold and the proceeds of the sale transferred as cash. The cash will then be invested into your choice of portfolio(s). There is no loss of tax benefits when doing this but you will not have access to your Investment Champion ISA until the transfer is complete. Investment Champion does not charge you for transferring your ISA across however your existing plan manager may apply exit charges.

What's the difference between Sustainable and Traditional portfolios?

Sustainable portfolios are made up of funds that adhere to Environmental, Social and good Corporate Governance (ESG) principles whilst Traditional portfolios can include all fund types.

Is my money safe?

Investment Champion uses a range of fund providers and your money is protected by the Financial Services Compensation Scheme up to £85,000 per provider.