Digital wealth management platform – robo advisor – Wealthsimple is the latest to offer its UK clients a pension account type with a self-invested personal pension (SIPP); it joins providers such as Moneyfarm and Scalable Capital and the company claims that account opening takes just ‘minutes’ with ‘no paperwork’.
Having initially struggled to attract cash-strapped millennials, the robo advice platforms turned to relatively more mature and sophisticated investors and viewed the SIPP market as a key way to scaling up to profitability.
However, an increasing number of younger investors with relatively modest sums to invest appear to be taking advantage of the low fees offered by the robo advisors and their key advantage of a long investment horizon.
taking advantage of the low fees offered by the robo advisors and their key advantage of a long investment horizon
Wealthsimple’s customers have access to globally-diversified ETF-based portfolios with fees of 0.7% for under £100,000, 0.5% for over £100,000 and no minimum account size; the pension also comes with unlimited access to investment advice from a human adviser at no additional cost and the company will refund and fees that are charged to those transferring in.
In announcing the product the robo advisor’s CEO Europe Toby Triebel said: ‘retirement is something people should look forward to, but traditionally UK pension providers haven’t made it easy for people to save for their future. Fees are high, there’s little flexibility and next to no support’.
‘We’re bringing the simple, human approach we’re known for to pensions and giving people access to the advice and guidance they need to build a smart retirement strategy for their future.’
Describing its service as ‘investing on autopilot’ the Wealthsimple Pension also allows companies to contribute to an employer’s pension.
Originating in Canada and part of the Power Financial Corporation (more) Wealthsimple has 100,000 customers globally with more than £2bn under management.
As reported by Muckle, in January Wealthsimple became the first of the robo advisors to offer socially responsible investment (SRI) portfolios – more.