AJ Bell are a UK-based investment platform that specialises in a range of different financial products and services, with pensions being one of its main offerings.
We work with independent pension advisers who have a deep working relationship with AJ Bell. They specialise in their product range and can help you access it, compare it against the rest of the market, or review your options if you have an existing AJ Bell pension.
Get started below to begin a free, no-obligation chat with an independent pension adviser.
About AJ Bell pensions
Founded in Manchester by Andy Bell and Nicholas Littlefair, AJ Bell has been providing online investment platforms and stockbroker services since 1996.
With over 620,000 customers and billions in assets under administration, they offer a range of investment services, and pensions are among them. They specialise in self-invested personal pensions (SIPPs), personal pensions and services such as drawdown.
Pension products and services available
You can take out the following types of pension with AJ Bell:
-
SIPPs: Designed for investment-savvy individuals who want full control over where their retirement funds are invested. There are plenty of investment options to choose from including funds, shares, investment trusts, and exchange-traded funds (EFTs).
-
Personal Pensions: AJ Bell’s offers a personal pension plan they call a ‘ready-made pension’. This option is for those who prefer hands-off investments, with the firm’s fund managers overseeing the account based on the holder’s appetite for risk.
-
Junior SIPPs: A type of SIPP a parent or legal guardian can take out on behalf of their children to start saving for their retirement. With this type of account, the UK Government adds 20% tax relief on contributions up to £2,880 per year.
In addition to the above pension products, AJ Bell also offers the below pension services:
-
Pension transfers: Most types of pension can be transferred into an AJ Bell account and they offer a ‘free’ finder service to trace customer’s old pension pots.
-
Pension pot access: There are a variety of options for accessing an AJ Bell pension pot including flexi-access drawdown, taking out a lump sum or buying an annuity.
-
Pension contributions: Account holders can make single or regular contributions to an AJ Bell pension. They do not offer workplace pensions but employers can add contributions to an AJ Bell SIPP. The firm claims basic-rate tax relief on behalf of account holders, and higher-rate taxpayers can claim additional relief.
How much does it cost to set up a pension with them?
There is no setup fee for an AJ Bell pension, but you will pay charges based on your investments. These include dealing charges for buying and selling investments, such as set fees for funds and shares, and annual account charges that vary by investment type.
What kind of reviews does AJ Bell have as a pension provider?
AJ Bell has positive reviews from existing customers. On consumer review aggregator Trustpilot, they have an "Excellent" rating of 4.8 out of 5, based on over 10,000 reviews.
The firm is also acclaimed within the financial services world for its products in this sector, having been named as a Which recommended provider and being cited as a top provider of SIPPs by several financial reviewers, who hailed their low cost and investment choice.
Pros and cons
The advantages and disadvantages of AJ Bell as a pension provider are summarised below:
Advantages
-
User-friendly platform: The platform is designed to be easy to use for both beginners and experienced investors.
-
Wide investment range: You can invest in a broad selection of assets, including UK and international shares, ETFs, and various funds.
-
Transparent and competitive fees: The fee structure is clear, and the percentage-based platform fees are considered competitive, especially for larger portfolios over £100,000.
-
Good educational resources: AJ Bell provides educational content and market insights to help users with their investments.
-
Reliable app: A mobile app is available for both iOS and Android, allowing for on-the-go management of investments.
-
Strong customer support: Many users report positive experiences with responsive and friendly customer service.
Disadvantages
-
Higher trading fees for frequent traders: The trading fees can be more expensive than some competitors if you trade frequently.
-
Potential for accumulating fees: For smaller portfolios or frequent trading activity, additional fees can add up and impact returns.
-
No direct advice service: AJ Bell does not offer personalized financial advice, which may be a drawback for those who need it.
-
Transfer fees: You may incur fees when moving your portfolio to or from AJ Bell.
-
No fractional shares: You cannot invest in fractional shares with AJ Bell.
Your options with an existing AJ Bell pension
If you already have an AJ Bell pension, we can arrange for one of our independent financial advisers to review it for you for free. During the process, they will look into how your funds are growing and whether there is a better pension provider or product for you.
There is no obligation to act on their advice, and they are legally obligated to inform you if it’s in your best interest to remain with AJ Bell and make no changes to your account with them.
Transferring a pension away from AJ Bell
It is possible to transfer your pension pot away from AJ Bell to another pension provider or a different type of account (either with AJ Bell or elsewhere). If a transfer is in your best interest, your adviser will inform you of this during your free pension review.
Transferring a pension without taking professional advice first is not recommended. Indeed, there are scenarios where it is a legal requirement, such as if you are transferring your pension pot to a Qualifying Recognised Overseas Pension Scheme (QROPS).
Get independent advice about AJ Bell pensions
If you are wondering if AJ Bell is your ideal pension provider, the independent financial advisers we work with can confirm this by carrying out a free pension review for you.
During this consultation, your adviser will take a deep dive into your retirement needs and personal circumstances to determine whether AJ Bell is the best option.
If you are an existing AJ Bell customer, your review will establish whether sticking with them is your best option, or transferring your funds elsewhere, which we can help you do.
Here are just some of the reasons why people choose us for their pension needs:
-
Our advisers are independent, giving you the widest pension options
-
Free initial consultation, with no obligation to go further
-
Fully qualified, FCA-regulated financial planners
-
Access to pension specialists with experience in complex cases
Get started here to take advantage of a free pension review and find out whether AJ Bell or one of their competitors is the best place for your retirement funds to grow.
FAQs
Your pension pot can normally be passed on, free of inheritance tax, to your beneficiaries when you die, but there could be tax implications depending on the age you pass away at.
Your funds will be exempt from tax if you die under the age of 75 and your funds do not exceed the Lump Sum and Death Benefit Allowance (LSDBA).
If you are over 75 when you pass away and/or your funds do exceed the LSDBA limit, the beneficiary would usually have to pay income tax at their marginal rate.