The new Pension Builder will allow customers to choose from a wide range of investment options across the UK, the US, and international markets to invest their pension holdings in – from direct equities and funds to ETFs and investment trusts.
Trading costs are just £7.99 for UK and US shares, whereas international shares cost £19.99 to trade. For an extra £7 a month, customers will be able to upgrade their account to also have an ISA, a trading account, as many Junior ISAs (JISAs) as they have children, and one free trade a month.
The first six months of subscription will be free for all new customers, meaning they won’t pay the flat £12.99 fee during this period. Customers will then pay to make trades on the interactive investor platform as above.
Research carried out by Opinium for interactive investor revealed that 6.2 million people in the UK want to build up their long-term wealth by focusing on their pension.
According to interactive investor, Pension Builder is aimed directly at those savers, who perhaps don’t want an ISA and don’t trade regularly but still want a pension plan that is good value for money.
Richard Wilson, CEO of interactive investor, believes their new Pension Builder will help make managing and watching your pension grow as simple as ever, for an affordable price.
He said: “Our pension price was amazing before. Now, at only £12.99 a month to run your pension, it breaks the mould completely.
“We are proud to launch this low cost, flat fee Pension Builder. What you see is what you get – a transparent charge in pounds and pence that stays the same as your wealth grows. We’ve designed this product to make building your pension pot simple, straightforward, and ultimately, satisfying. You can take true ownership of your pension and help shape the retirement life you aspire to.”
Excessive fees can jeopardise the value of your pension pot
Typically, with other pension providers, as your pension pot grows, so do the charges you incur. With interactive investor’s new Pension Builder, however, your fee will remain the same regardless of how much you have accrued in your pension pot.
interactive investor has always tried to state the importance of being open about how fees and charges can eat into savers’ pockets on a monthly basis.
Becky O’Connor, the head of pensions at interactive investor, believes fees can’t be overlooked as they can have a serious impact on long-term financial health, even if they don’t seem like a lot at first.
She explained: “The low, flat fee on the Pension Builder means that cost savings you make compared to other platforms can contribute to your future instead. Over the years, the amount saved could add thousands of pounds to your retirement income.
“Many people are still unaware that a self-invested personal pension plan, or SIPP, could be a great option for them. SIPPs offer the same tax advantages as a standard pension, but you have added control over the investments made.”