Aviva Pension is a self-invested personal pension (SIPP). It allows you to build up a retirement pension fund in a tax efficient way, whilst having access to a wide range of investments that you can manage online.
Five reasons to open a Pension
- Choose and buy online from a wide range of investments, giving you total control over what you invest in.
- Our easy-to-use website makes it simple to access and manage your own account online, 24/7.
- You can choose to transfer existing pensions into an Aviva Pension, making it easier to manage your investment.
- The Aviva Pension accepts contributions from your employer.
- Choose to take an income from the Aviva Pension.
The value of some investments could go down as well as up. You may get back less than the amount that has been paid in.
Things to consider
To invest in our Pension, you must be:
- Over 18.
- Eligible for tax relief on your pension payments.
- Resident in the UK.
You may also be eligible if you, your spouse or civil partner work overseas as a Crown employee
Pension may be for you if you want:
- To make regular payments each month of at least £50, or
- To make an initial or transfer payment of £5,000, or £1,000 if you want to make regular payments of at least £50 per month.
- To bring a number of pension plans together in one place.
- The flexibility to stop, start or change your payments with no penalties.
- Access to a wide range of investments.
- To take an income from your Pension through income drawdown.
Pension may not be for you if you:
- Don't feel confident to research and choose your own investments.
- Want to take an income from your pension before 6 April 2015.
- Can’t commit to making payments of at least £50 a month, or an initial/or transfer payment of £5,000.
- Don’t have access to the internet to allow you to manage your Pension.
- Might need access to your money before you reach the age of 55.
- Have a company pension via your employer you can join. You should always consider your employer’s scheme.
New pension rules
Government changes due to come in from 6 April 2015 mean you’ll be able to take some or all of your funds from your defined contribution pension fund however you choose, when you reach 55. For more information visit How do I take money from my pension fund?.
We’ve kept our charges simple and straightforward so you know exactly what you’re paying.
- Low Aviva charges of no more than 0.40% p.a
- No Aviva charges for money held in the cash account
- No charge for electronic transfers
- Reward you with lower percentage charges if you invest more
Charges made by Aviva
This is our annual charge for managing your Pension.
If you have an Investment Account or ISA as well as a Pension through this platform service we will use these to calculate the Aviva charge. If you have a structured deposit(s), the initial structured deposit value will be taken in to account when calculating your charge. This approach rewards you for the total value of your holdings. When we calculate the Aviva charge, we don’t include money held in any cash accounts or fixed term deposits. No Aviva charge will be made against money held in any cash accounts or fixed term deposits.
|Value of portfolios||Annual charge|
|Amounts above £500,000||0%|
The charges are calculated on a daily basis and taken monthly from the cash account
For example, if the total of your investments is £100,000 the annual charge will be:
0.4% of the first £50,000 = £200
0.35% for the remaining £50,000 = £175
Total Aviva charge = £375 per year
The example assumes the value of the investment remains at £100,000 throughout the year. If this value changes, the charge will change accordingly, since it's worked out on a daily basis.
You need to make sure there is enough money in the cash account to cover our charges. If there isn’t enough money in your cash account we will automatically take the money from across your investments. For certain investments, we will not do this and we will contact you to make suitable arrangements for payment by you.
We’ll give you 30 days’ notice if we have to change our standard Aviva Charge.
Paper correspondence charge
We will normally send you information about your account electronically. If you would rather receive paper correspondence there’s a charge of £3.00 per month for this service.
Charges made depending on your investments
Fund manager charges
In addition to our Aviva charge, fund managers will also take charges that will depend on the investments chosen. These charges will be shown as the ongoing charges figure (OCF) or total expense ratio (TER). These charges represent the annual cost of managing the investment.
Regardless of the size of the transaction, there is a dealing charge taken by our nominated stockbroker for the investments below:
|Buying and selling of||Transaction charge|
|Exchange traded funds||£7.50|
|Fixed interest investments||£7.50|
Some exchange traded investments may also carry annual charges in addition to the dealing charges listed above.
Government taxes and levies
If you buy stocks and shares you will normally have to pay Stamp Duty Reserve Tax to HMRC of 0.5%.
A £1 flat rate charge will also be made on UK equity transactions over £10,000 to The Panel on Takeovers and Mergers.
Electronic transfers are free, but we take an administration charge on behalf of our nominated stockbroker for transferring shares where the share certificate is held in paper form. These are known as certificated transfers. The following charges apply:
Certificated transfers in – £20
Certificated transfers out – £20
Paying in and investing
With your Pension, you choose how much you want to invest and where you invest it.
- Simple online process to make payments into your Pension.
- Make regular payments from £50 a month.
- Single payments or pension transfers start from £5,000, or £1,000 if you make regular payments.
- Make one-off payments whenever you want.
- Stop, restart or change the amount of regular payments whenever you want.
Transferring in other pension plans
You may want to transfer an existing plan(s) from other companies into your Pension. Transferring your existing pension plan(s) means all your investments will be in one place.
You can transfer in payments from some existing pension plans, including other Aviva pension plans.
Before you transfer any pensions you should compare your existing pension plan with the Aviva Pension so you can understand any differences, whether there are valuable benefits you might lose by transferring and if you’ll be paying higher charges.
Choosing your investments
Choose from a range of investments including:
- Investment trusts
- Structured deposits *
- Fixed term deposits *
- Shares *
- Exchange traded funds *
- Fixed income e.g. gilts and retail bonds *
* Available from Summer 2015. If you have any queries, please contact us on 0800 285 1088.
We’ve a range of ready made funds that you can choose from based on how much risk you want to take, as well as a wider range of investments.
You don’t have to choose your investments as soon as you open an account. Your money can remain as cash within the cash account until you’ve chosen investments.
Making changes to your investments
We’ve made it simple for you to access your account and review your investments at any time you choose – you can do everything online - or you can give us a call on: 0800 285 1088.
What about tax?
What tax relief is available?
- You can normally get tax relief at source at the basic rate of tax (currently 20%) on regular and one-off payments into our Pension. So a payment of £80 means £100 will go in to the pension as the Government pays the other £20.
- If you’re a higher rate taxpayer, you can claim higher rate tax relief through your self-assessment returns. Visit www.hmrc.gov.uk for more information.
- You don’t get tax relief on pension transfers as you’ve already received this when you first paid the money into your pension.
- Some investment returns may be received by the pension fund with attaching tax credits, or after tax deductions have been made at source in some jurisdictions, which cannot be reclaimed.
What are the limits for tax relief?
- If you’re a UK taxpayer you’ll get tax relief on pension contributions of up to 100% of your earnings or a £40,000 annual allowance whichever is lower. Any contributions you make over this limit will be subject to income tax at the highest rate you pay.
- From 6 April 2015 taking money from your pension fund means that your annual allowance – the amount you can save into a pension and benefit from tax relief – may be reduced to £10,000. Visit www.hmrc.gov.uk for more information.
- You can top up your annual allowance for the current tax year (6 April to 5 April) with any allowance you didn’t use from the previous three tax years - as long as you were a member of a pension scheme during those years.
- If you’re a UK non-taxpayer you will still get tax relief on your pension contributions up to the higher of your earnings or £3,600.
How is pension income taxed?
- You can usually take 25% of your pension fund as tax-free cash.
- You may have to pay income tax on any income you take. How much you pay will depend on your total income and personal circumstances at that time.
We’ve based our information on current UK legislation, but this may change in the future.
Taking money out at 55+
When can I get access to my money?
You can normally take a retirement income from a personal pension at any time from age 55. However, you won’t be able to take your retirement income before 6 April 2015 from the Aviva Pension.
You can take an income from your Pension through our income drawdown option. Income drawdown is a way of taking an income from your pension fund as and when you need it, leaving the rest of the fund still invested. For more details visit our income drawdown page.
Before you decide to take income drawdown
Taking income drawdown is an important decision and you need to be certain that you're making a choice which you're comfortable with.
Before income drawdown can be arranged, you will need to speak to one of our team. Call us on 0800 046 6167
How can I take income from my pension?
From 6 April 2015, new government rules – aimed at giving you easier access to your pension funds – are coming into effect.
Visit 'How do I take money from my pension fund?' for more information.
Can I take an income before I’m 55?
If ill-health prevents you from working or you are in a protected occupation (for example a professional footballer) you may be able to start taking a retirement income from your pension earlier than the normal minimum pension age of 55.
Managing your Pension
Managing your Pension online gives you control over what investments you buy, plus easy access to your account information whenever you want.
You’ll access your account through MyAviva – our online service that provides a single, convenient location for you to manage the Aviva products you use.
Any documents you need will be stored within your MyAviva account, so you need never search around for information.
Here’s what you can do
- Make changes online
You can review and change your investments at any time, and carry out real-time share dealing when the UK stock market is open.
- Review your account
Check how your investments are performing and the value of your pension fund.
Apply for investments and manage them online. You can make payments by debit card or direct debit and can add, change and stop your contributions at any time.
If you'd rather talk to someone, you can call us on 0800 285 1088 to make changes to your Pension.
Call us now for more information
If you’re new to Aviva
0800 285 1088
Lines are open Monday to Friday, 8.00am-6:30pm.
Or if you’re already a customer
0800 158 3470
Please be aware this line is very busy at the moment, we are doing all we can to answer your call.
Lines are open Monday to Friday, 9am-5pm.
Calls are free from UK landlines but you may be charged for calls made on mobile phones. For our joint protection, telephone calls may be recorded and/or monitored.
Find out how we can help you when you call our teams
If you need some help or information from Aviva, please call us on one of the numbers above. We can help you with:
- Using our website
- All the facts about Aviva products and services
- More details on the options you can choose from when you’re making decisions about your retirement
- Information on where to find financial advice
- Although we can’t give you advice, we can put you in touch with an adviser who can talk to you about which financial products or investments may be right for you.
- Alternatively, you can visit www.unbiased.co.uk to find an adviser in your area.