Nutmeg has launched its personal pension with charges between 0.3 per cent and 1 per cent and with a minimum investment of £5,000.
In December, Money Marketing revealed the direct-to-consumer online discretionary manager would be unveiling the pension plan, administered by Hornbuckle, early this year.
Mirroring the charging structure used across its other services, investments below £25,000 will be charged 1 per cent in annual management fees, investments below £50,000 0.9 per cent, below £100,000 0.75 per cent, below £250,000 0.6 per cent, below £500,000 0.5 per cent and anything above will be charged 0.3 per cent.
There are no set-up charges, commission fees or exit penalties.
However, there are administration charges of a minimum of £9 a month.
Members of the scheme will also get tax relief on their contributions added to their pot upfront, rather than waiting for a refund from HM Revenue & Customs.
Nutmeg says this helps ensure members’ do not miss out on market performance.
Pensions will be invested by Nutmeg based on risk appetites scored between one and 10, mainly through exchange-traded funds.
Nutmeg chief executive Nick Hungerford says: “This is really exciting for savers – a pension product that puts people in control, is expertly managed and painless to set up. In an industry embroiled in hidden charges, fees and complexity, our transparency promise will be a welcome reassurance to customers.
“The notion of receiving bi-annual pension statements in the post is incredibly archaic. You should be able to see where your pension pot is invested and how it’s performing whenever you want. We are particularly keen on seeing how we can engage younger savers in pensions, as they will suffer most from the ever widening pension deficit.
“It is unlikely people will ever receive an adequate state pension and it is critical they engage in pension provision as early as possible. We’ve focused our efforts on delivering a slick, intuitive, easy-to-use solution.”