Plum takes on PensionBee and Moneybox with new pension offering

Plum is joining the likes of Moneybox and Freetrade by making the move over from everyday investing to pensions.

The pension, which is Plum’s first-ever, will be a subscription-free Self-Invested Personal Pension (SIPP) and is designed to get a new generation of savers engaged with their finances.

From today, Plum’s pension can be found alongside its other investment products in the app and takes just six steps to sign up to, giving customers visibility over their finances all in the one place. 

The pension, while free from subscription fees, is subject to a 0.45 per cent annual fee from the provider, which is billed monthly and deducted from any investments made.

These fees also vary depending on what funds a customer picks, the range of portfolios on offer are managed by L&G and Vanguard.

As well as welcoming new customers to open a pension with Plum, customers can also move their old pensions to Plum to help create better visibility and control.

“Creating a better future for yourself should not be this difficult!,” Victor Trokoudes, co-founder and CEO of Plum, said.

“By bringing all your pensions into one app, you can manage your SIPP easily alongside your other savings and investments, and choose where your money goes to secure your future. Our goal is that checking your pension will become as easy and natural as checking your bank balance.”

Customers will benefit from Plum’s savings algorithm to help them put away as much as they can afford and splits it between interest-bearing savings, investments and pensions according to the customer’s chosen saving strategy.

SIPP savers will also be able to choose from funds that are risk-managed according to their age and how long they have until they retire, as well as having the option to invest in more environmentally friendly funds that give greater weight to companies that meet positive carbon and environmental criteria.

“ People want control and flexibility over their finances, so they can be resilient whichever way their life and career pans out. Opening a SIPP is a great way to make sure you look after your future as well as your present,” Trokoudes added.

As well as launching its first pension, Plum is looking to dip its toes into the stock trading and crypto waters later on this year.

Plum has amassed more than 1.5m customers across Europe that look set to save over $1.5bn by the end of 2021.