What is a Monzo Pension and how does it work?
With a Monzo Pension you’ll be able to combine your old workplace and personal pensions into one place.
A Monzo Pension is a self-invested personal pension (SIPP) which is a type of personal pension.
With a Monzo Pension you’re able to:
find lost pension(s)
combine your pensions into one by transferring your old pension(s) into your Monzo pension
keep investing in your future 🚀
We’ve teamed up with BlackRock, one of the world’s largest fund managers, to provide the investment options available in your Monzo Pension.
When you open a Monzo Pension, you'll be shown a Target Date fund based on the retirement age you choose. This is your default investment option, meaning we'll invest your pension here unless you choose a different investment. It's designed to give you a straightforward way to get started, while still letting you change your investments whenever you'd like.
Target date funds use the age you aim to retire to automatically adjust your investments from higher to lower risk. They invest in a mix of shares, bonds and other smaller investments, carefully changing how much they're investing in each of these things over time.
If you’d prefer, you can choose your own investment options. Follow the ‘Explore more funds’ path when setting up your Monzo Pension to see all the investments we offer. You can change your investments at any time.
You’ll pay 0.25% of your pension value in platform fees to Monzo annually plus a BlackRock management fee which varies depending on what you’re invested in. BlackRock’s fees are reflected in the value of your investments, so you won't see these come out of your account. Your fees accrue daily, and are charged monthly.
Plus, Premium, Perks or Max customer? Then you’ll pay a lower platform fee of 0.20%. Platform fees are capped at £250 a year (or £200 with Monzo Perks or Max). Once your combined investments and pension grow beyond £100,000, you won’t pay any yearly platform fees on the amount above that.
Monzo Pension is only available for our customers between 18 and 70 years old who already have an open Monzo Current Account. You’ll also need to be a UK resident.
*The value of your pension could go up or down and you could get back less than you put in.
