Moneybox pension review – Invest via ’round ups’ and consolidate your old pensions at the same time

2 min Read Published: 12 Mar 2020

moneybox review

The investment app Moneybox has launched its own pension consolidation service that allows users to track and combine old pension pots into one Self-Invested Personal Pension (SIPP).

Moneybox's new pension consolidation service is likely to rival PensionBee, a well-established pension consolidation service and the launch can only be good news for consumers who have been starved of choice since Pensionbee burst onto the market in 2014. You can find out more about PensionBee and how it compares to Moneybox's new pension consolidation service here. In this article, we take a look at the new Moneybox SIPP, including how the pension consolidation service works.

What is Moneybox?

Moneybox uses digital technology via its smartphone app and enables users to round up purchases and save their spare change into a number of investment services including a Stocks and Shares ISA, General Investment ISA, Lifetime ISA, Junior ISA and a 95 Day Notice Account. For more information on these accounts, you can read our full independent Moneybox Review.

What is the Moneybox SIPP and how does it work?

The Moneybox SIPP allows customers to bring together all of their old workplace pensions into one single pension pot which can then be invested into one of 3 different plans. Moneybox is not able to transfer defined benefit pension schemes or pension schemes that have special benefits (such as higher than 25% tax-free drawdown amount). Moneybox also says it is unlikely it will be able to accept pensions from another country however it is willing to check if you get in touch with its customer service team. Moneybox only accepts old pensions and does not allow you to transfer a pension you are currently contributing to. If you don't have an existing workplace pension to transfer (or don't wish to) then you are able to open a Moneybox SIPP by skipping through the transfer options when downloading the app.

The Moneybox SIPP allows users to contribute to their pension using its round-up feature, as well as regular contributions and lump sums.

To start the transfer process you need to download the Moneybox app from the relevant app store on your smartphone device. You will need to create a Moneybox account which requires basic details such as name, email, D.O.B, mobile number and a password. Once you have created an account and elected to set up a pension you will be asked to provide some details about your old pensions. The process is quicker if you have access to your old pension policy numbers but if you haven't got these to hand you may want to use the free government pension tracing service. Once all the relevant details are completed, Moneybox will sort out the rest.

Moneybox pension funds

There are currently three pension options to invest in and these can be changed anytime in the app settings:

  • The Fidelity World Index Fund (the same as the Moneybox ISA, GIA and LISA)
  • Old Mutual World ESG Index Fund (socially responsible investing)
  • BlackRock LifePath fund (lifestyle fund - changes the balance of investments as you get closer to retirement)

Moneybox pension fees

There will be no monthly subscription fee with the new service. Moneybox usually charges a £1 monthly subscription with its other investment services.

Investment fees are as follows:

  • Investments under £100,000 - 0.45%
  • Investments over £100,000 - 0.15%

All fees are calculated daily and charged at the end of the month.

  • Fund provider fees are between 0.12%-0.30%

Moneybox vs PensionBee

The launch of Moneybox's pension consolidation service rivals that of PensionBee, a pension consolidation service that was launched in 2014. You can choose to invest your consolidated pension pot into one of 7 plans. Once you provide the details of your old pension plans PensionBee works to consolidate them into your chosen plan, updating you on the progress along the way. If you struggle to find an old workplace pension, PensionBee goes a little further Moneybox in that it actively tries to seek out your old pension pots on your behalf. PensionBee has the additional feature of notifying you of any exit costs charged by your current pension provider.

PensionBee's fees range between 0.50% - 0.95% a year but this is the total fee you pay and so includes fund charges. For more information on PensionBee you can read our full independent PensionBee Review.