Pension FAQs

Currently, there’s no limit on how much you can pay into your pension, however, you won’t receive tax relief on anything over £60,000 or 100% of your salary, whichever is lower. The £60,000 limit includes all payments, including the government top up and employer contributions – so it is actually £48,000 of your contributions, plus £12,000 tax relief.

If you go over this limit you won’t receive tax relief and will have to pay an annual allowance charge which will be added to the rest of your yearly taxable income.

If your income is less than £3,600 a year, you will only be able to contribute up to £2,880 with tax relief. You can make further contributions but will not be not entitled to tax relief on them.

You can access your pension when you turn 55 (rising to 57 in 2028). However, you do not have to withdraw any or all of your pension then. If you’re still working, for example, you can leave the money in your pension – and continue to contribute – until you retire.

Yes, you can! And it’s relatively hassle-free – just let us know some details about your pension, including who your provider is, a reference number and estimated value – you can usually find these details on your latest pension statement.

It’s worth finding out if your existing provider charges exit fees, as these could limit the financial benefit of changing provider. We're unable to accept any pensions that you’re already taking an income from or transfer any pensions with defined benefits or guarantees.

If you’re an existing customer, simply head to your Dashboard and use the ‘transfer in’ button on your home screen.

In short, a pension is a tax-efficient way of saving for your retirement. In the UK, there are lots of different types of pensions, but the three main types are workplace pension, personal pensions, and state pensions. Wealthify offers a Self-Invested Personal Pension, letting you complement any workplace pensions and benefit from a 25% top up from the government’s tax relief – which we’ll automatically add to your account!

For more information, please refer to our comprehensive guide on pensions.

Wealthify automatically adds the 25% top up when you make a personal contribution to your pension and only if you ticked the box to state your eligibility for tax relief when you opened the SIPP. So, if you personally pay in £800, the government adds another £200, making the total £1000. However, if you’re a higher-rate taxpayer, you may be entitled to more, in which case you will need to contact HMRC to be able to access higher-rate tax relief. This will need to be submitted on your annual tax return.

When you open a SIPP with Wealthify, you must tick the box to say you are eligible for the tax top-up. We then automatically add the 25% top up to your pension when you make personal contributions. This means we do all the work for you and you don’t need to claim anything yourself. However, if you’re a higher-rate taxpayer, you’ll need to contact HMRC for tax relief at the higher rate.

You can transfer most types of pensions to Wealthify, apart from:

• Pensions with a defined benefit (DB), guaranteed annuity rate (GAR), guaranteed minimum pension (GMP), or final salary promise;
• Pensions with protected benefits such as Protected Tax-Free Cash, or Protected Pension Age;
• Pensions you’re already taking an income from;
• Overseas pensions, including Qualifying Recognised Overseas Pension Schemes (QROPS);
• Crystallised plans.

Please note we can only accept defined contribution plans that have no safeguarded benefits or guarantees.

In 2022, Lloyds Banking Group acquired the Embark Group. As a result, the ‘Embark Platform’ was rebranded to become the ‘Scottish Widows Platform’.

You may see Scottish Widows (Formerly Embark) named during the pension transfer process, as this is how the underlying system recognises the platform. Even though our name appears as Scottish Widows (Formerly Embark), please note that we are not part of the Scottish Widows group.

The Scottish Widows Platform will still be operated by Embark Investment Services Limited, as it’s a change of trading name and branding only — meaning there’s no change to the way your account is managed (and your terms and conditions have not been affected).

Wealthify doesn’t offer a pension finding service. We need to know who your pensions are with and a reference number in order to transfer your pension to us. We’re not able to find your pension if you aren’t sure who it is with.

If you need help finding your pension, please visit the Pension Tracing Service which is a free, government-run service.

Transferring your old pensions is easier than you might think – all we need to know is who your old providers are, reference numbers , an estimated value, and your permission to get in touch with your old providers regarding your pensions. You can usually find this information on your latest pension statement. We’ll do the rest and consolidate them into your Wealthify Pension.

If you’re an existing customer, simply head to your Dashboard and use the ‘transfer in’ button on your home screen.

Embark Investment Services Limited act as your custodian for our pension product, holding your cash and investments safely and ring-fenced from their own, under the Financial Conduct Authority’s client asset rules. They’re fully regulated by the FCA and are part of the Embark Group – the UK’s fastest-growing digital retirement platform.

You can access your pension when you turn 55 (rising to 57 in 2028). Subject to current pension rules, you'll be able to withdraw 25% of the total amount tax-free, with the rest being taxed based on your individual circumstances. However, you don’t have to take any of your pension if you don’t want to. If you’re still working, for example, you can leave the money in your pension – and continue to contribute – until you retire.

The way you take your money out of your pension (a process known as moving your pension into drawdown), will vary depending on the type of pension you have.

If you have a defined benefit pension, you will receive a specific income for life, which should increase every year. If you have a defined contribution scheme, then you’ll be able to choose how you want to withdraw your funds using one of the following methods:

• Take your whole pension in one go as a lump sum.
• Withdraw money whenever you need it.
• Receive a regular income.

One of the easiest ways to trace old pensions is to use the government’s online Pension Tracing Service.
To use this service, you’ll need either the name of an employer or pension provider, as it can’t tell you whether you actually have a pension, or its value.

Once you’ve agreed to the service’s declaration, it’s then just a matter of answering a few simple 'yes’ or ‘no’ questions, including:

• Are you looking for an NHS, civil service, teacher or armed services pension?
• What type of pension are you looking for?
• Do you know the name of the employer, who set up your workplace pension?
• Do you know the name of your workplace pension scheme?

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You can access your pension when you turn 55 (rising to 57 in 2028).

You can normally take 25% of your pension out tax-free and the rest will be taxed at your marginal rate of income tax. You have the flexibility to choose how much you take and how often you dip into your pension pot.

Wealthify offers lump sum withdrawal or Flexi-Access Drawdown, which could be multiple combinations of Pension Commencement Lump Sums (PCLS) (being the tax-free portion of your pension) and income payments. There’s also the option of a small pot withdrawal for Pension Plans with a value of less than £10,000.

If you choose to take a small pot lump sum payment, this will be a one-off payment that results in the closure of your Wealthify Pension Plan. Taking pension income, either as part of a lump sum withdrawal or an income payment under Flexi-Access drawdown, will trigger your Money Purchase Annual Allowance (MPAA).

Please note that you can take a different retirement option at any time (with Wealthify or another provider), using the remaining money in your pension pot. Wealthify does not offer an annuity; if you want this option, you’ll need to take it with another provider.

The government pensions website, Pension Wise, a free, impartial guidance service from MoneyHelper and backed by government, has some useful resources to help you understand your options at retirement.

The option you choose will depend on your circumstances and what’s right for you. If you’re unsure about your options at retirement you should seek financial advice.

Yes, the service is completely free — you’ll just need to provide basic information like your name, age, and address to be able to use it.

If you’re looking to claim the pension of someone who’s passed away, you’ll need to start by contacting the provider or, in the case of a workplace pension, the employer. If you can’t find the pension but believe the person might have had one, you can use the government’s Pension Tracing Service to help, too.