FAQs - Pensions

How does pension tax relief work?

If you are a basic rate taxpayer (i.e. pay income tax of 20% on your income), you can receive 20% tax relief on any pension contributions you make subject to your annual allowance. The way this works in practice is that if you contribute £80 into a pension, the government will top this up with an additional £20 meaning your total contribution becomes £100.
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If you are a higher or additional rate taxpayer you can benefit from 40% and 45% tax relief respectively but you have to reclaim the extra tax relief through your self assessed tax return as you will only receive basic rate tax relief on your mynestegg pension contributions.

Am I eligible for a pension with mynestegg?

To be eligible for a pension with mynestegg you must be a UK resident and UK citizen for tax purposes. You must also be at least 18 years of age.

What type of pension does mynestegg offer?
There are various types of pension schemes in the UK. The two most common schemes are:
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1) Defined Benefit pensions
2) Defined Contribution pensions
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At mynestegg we offer a Self-Invested Personal Pension which is a type of defined contribution pension, This means that your pension pot at retirement is dependent on how much you contribute and the growth of the investments within your pension.

What is my pension allowance?

There are various different allowances associated with pensions. The most common ones are:
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Annual allowance: this is the amount you can put into pensions each tax year and is currently the higher of £60,000 or your annual UK relevant earnings, subject to a minimum of £3,600. All of these figures are inclusive of any tax relief you may be eligible for.
Lifetime allowance: this is no longer applicable but historically has restricted individuals to a maximum amount they can have in pensions.
Money purchase annual allowance: if you have flexibly accessed your pensions, you are restricted to a £10,000 annual pension allowance for new contributions.
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If you have any further questions on pension allowances please speak with one of our team to discuss this in more detail.
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How do pension withdrawals work?

mynestegg don't currently allow withdrawals from their pension product. This is something we are looking to introduce soon and if you are over the age of 55 and looking to access your pension, you will have to transfer out to a new provider.
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When you come to access your pension in retirement, you can withdraw 25% of the account value tax free and the remainder is potentially subject to income tax depending on how much you withdraw each year.

What happens to my pension if I die?

The Government recently announced that as as of 1st April 2027 pensions will be subject to inheritance tax. If you were to pass away under the age of 75 prior to 1st April 2027, your pensions can still be passed on to your beneficiaries without being subject to inheritance tax. If you were to pass away after the age of 75 before the 1st April after the age of 75, your pensions can be passed to your beneficiaries but any withdrawals they take from your pension will be taxed at their marginal (highest) rate of income tax.

Can I transfer a pension if I've started to take benefits?

mynestegg doesn't currently offer a drawdown facility and as such doesn't accept transfers of pensions where benefits have been accessed (crystallised). This is something we are looking to introduce in the near future.

Can I change my mind about pensions?

Please refer to the Pension Key Features Document in your mynestegg Document Store.
With the mynestegg pension you have 30 days as a 'cooling off' period where you can cancel the contract with us once money has been added to your account and have your contribution returned. Please note that the money paid back to you will be the same as the value it is at the time of cancellation.
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To cancel your pension please email help@mynestegg.com or SIPP@seccl.tech

Why is mynestegg better than my workplace pension schemes?

If you can benefit from auto enrolment or matched pension contributions from your employer, we would always recommend that you look into this first before contributing to a pension with mynestegg. Once you have reached the limit of matched contributions, mynestegg might then be a better provider than your workplace pension. This could be in relation to fees, accessibility, performance or simplicity.

What happens if I change jobs?

If you change jobs, this won't impact your mynestegg account. Instead you could look to transfer your old workplace pensions into your mynestegg account through the web portal or mobile app.

How long does it take to transfer existing pensions to mynestegg?

The majority of pension transfers at mynestegg are completed using Equisoft and Origo. This means that we don't require paper based forms and can use technology to connect directly with your existing pension provider. These transfers take on average 15 calendar days but this can vary between providers.
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Some pension providers are not on Equisoft and Origo and therefore require a digital signature on a transfer form which we will email to you once you have completed the sign up journey. These transfers typically take up to 30 calendar days but again vary depending on the provider.

What are the next steps I need to complete to transfer a pension?

To complete the pension transfer process, you need to go through the following steps:
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- Complete the pension calculator
- Tell us the names of your existing pension providers
- Create your mynestegg account by providing us with the necessary personal information
- Sign any digital transfer forms if needed
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We will then do the hard work in the background to transfer your existing pensions to mynestegg. You can track the progress of your transfers at all times through your mynestegg portal and/or mobile app.

What are the fees for transferring my existing pensions?

mynestegg has a very competitive and simple charging structure. As a client you will pay the following:
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Yearly Account Fee: 0.45%
Fund Fee: 0.12% - 0.23% (varies with risk)
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Total Yearly Fee: 0.57% - 0.68%
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We don't charge any initial fees for transferring pensions and do not charge any transfer out or exit fees.

How do I setup my account to transfer my existing pensions?

To create a pension account and transfer your existing pensions, you need to have the following information to hand:
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- Existing pension provider name(s)
- Existing pension policy number(s)
- Policy valuation
- Your National Insurance number
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We will also ask you for some personal information such as home address, marital status and employment status.

Why should I transfer my existing pensions to mynestegg?

There are many potential benefits of transferring your existing pensions to mynestegg. These include the following:
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- We have one of the most competitive charging structures in the industry so you can keep more of your returns
- We invest your money with the biggest asset managers in the world using a passive investment strategy
- You can track your account at any time through the mynestegg app
- You can reduce your paperwork and increase the ease of managing your pensions if you have everything in one place

Can I transfer an international pension?

We don't currently accept transfers in or transfers out to pension schemes registered outside of the UK.

I can't find my pension provider

If your provider name is not on our list you will have the option to manually type your provider name.

Is there a minimum pension transfer value?

There is no minimum transfer value when moving existing pension policies to mynestegg.

What are the pension fees?

mynestegg have a very competitive and simple charging structure. As a client you will pay the following:
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Yearly Account Fee: 0.45%
Fund Fee: 0.12% - 0.23% (varies with risk)
Total Yearly Fee: 0.57% - 0.68%
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We don't charge any initial or exit fees.

How has my pension performed?

For specific performance on the default pension fund please contact help@mynestegg.com
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Here's how our other risk profile funds would've performed over the last 5 years:
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Cautious: 11.50%
Balanced: 38.10%
Adventurous: 79.00%
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Figures as at 1st November 2024.

What are the tax benefits of a pension?

The most common tax benefits of pensions are:
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- Your pension can grow in value without being subject to tax on the profit that it makes (Capital Gains Tax)
- Your pension can receive interest contributions without being subject to tax on the income (Income Tax)
- You benefit from tax relief when you make contributions into your pension
- Pensions are exempt from Inheritance Tax

What are the steps needed to set up a new pension?

To create a new mynestegg pension, you need to go through the following steps:
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- Complete the pension calculator
- Create your mynestegg account by providing us with the necessary personal information
- Setup the contributions into your mynestegg account
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You can then monitor your account through the mynestegg portal and/or mobile app at your convenience.

How to create a new pension account?

To create a new pension account, the key bits of information you need to have to hand are:
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- National Insurance number
- Home address
- Marital status
- Employment status

How to withdraw money from a pension?

mynestegg does not currently facilitate withdrawals from our pension product. You can access funds from within your pension from the age of 55 or 57 from 2028 onwards. If this is something you would like to do, you will need to transfer to a new pension provider who can process withdrawals.
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This is something we are looking to introduce in the near future.

Can I set up a pension and an ISA?

Absolutely. Once you have setup a pension with mynestegg you can then open an ISA product. This can be done through your web portal or mobile app.