AJ Bell Pension Reviews, Transfers, Drawdown and More

AJ Bell is one of the UK’s largest and most established investment platforms, managing over £80 billion in client assets. Regulated by the Financial Conduct Authority (FCA) and listed on the London Stock Exchange, it offers a self-invested personal pension (SIPP) designed for both self-directed investors and those seeking ready-made retirement portfolios.

AJ Bell SIPP at a Glance

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.

Fee Structure Breakdown

AJ Bell’s pricing structure splits into platform management fees and transaction/dealing costs.

1. Platform Custody Fees

• Funds & Unit Trusts: 0.25% per annum on portfolio value up to £250,000; 0.10% on value between £250,000 and £500,000; 0% on value above £500,000.

• Shares, ETFs, Investment Trusts & Bonds: 0.25% per annum, but capped at a maximum of £10.00 per month (£120 per year) regardless of total holding value.

2. Transaction Charges

• Fund Dealing: £1.50 per buy or sell trade.

• Share/ETF Dealing: £5.00 per buy or sell trade (reduced to £3.50 per trade if you executed 10 or more share trades in the previous month).

• Regular Dividend Reinvestment: Free.

• Regular Investment Scheme: £1.50 per trade for automated monthly contributions.

Customer Reviews

To assess customer satisfaction, we analysed feedback across the four primary independent financial review aggregator platforms in the UK:

Expert Opinion

Key Pros & Cons

Pros

• Competitive Platform Fee: The 0.25% fee on funds undercut many legacy competitors like Hargreaves Lansdown (0.45%).

• Share Capping Benefit: Capping share/ETF platform fees at £120/year makes it exceptionally cost-effective for larger SIPP portfolios holding individual shares or exchange-traded funds.

• Vast Asset Universe: Access to over 4,000 funds, gilts, corporate bonds, and equities across 24 international markets.

• Strong Customer Support: Accessible UK-based telephone support alongside digital account management.

• Simplified App Alternative: Access to Dodl by AJ Bell for beginners seeking low-cost, simplified options at 0.15% per year.

Cons

• Fund Dealing Charges: Unlike some platforms offering free fund trading, AJ Bell charges £1.50 per fund trade.

• Foreign Exchange (FX) Fees: Tiered FX fees starting at 0.75% can add up when buying overseas shares.

• Exit Charge: A £75 SIPP transfer-out fee applies if you leave the platform.

• Interface Complexity: The main desktop dashboard offers extensive data, which can feel overwhelming for complete beginners.

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).

How AJ Bell Compares to Main UK Competitors

• VS Hargreaves Lansdown: AJ Bell is generally cheaper on custody fees (0.25% vs HL's 0.45% fund fee) and lower share dealing rates (£5.00 vs £6.95). HL offers a slightly slicker user interface and broader research reports.

• VS Vanguard Investor: Vanguard is cheaper for pure index fund investing (0.15% platform fee capped at £375/year), but restricts you strictly to Vanguard’s own funds. AJ Bell provides access to the whole market.

• VS Interactive Investor (ii): Interactive Investor uses a flat monthly subscription model (£12.99–£19.99/month). Interactive Investor tends to be cheaper for fund portfolios exceeding £100,000, while AJ Bell is more cost-effective for smaller pots or equity-only portfolios due to its £10 monthly cap.

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.