Lloyds Bank Introduces New Pension Service: Savings can combine up to 10 pension pots and open a new Scottish Widows pension at Lloyds Bank, the first high-street bank to launch a ready-made pension service.
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According to Lloyds research, around 42% of adults don’t know how to increase their pension contributions.
Furthermore, data shows that 50% more savers would engage in their pensions more frequently with a banking app.
For a comfortable retirement, a couple needs an annual income of £59,000, according to the Pension and Lifetime Savings Association (PLSA).
It makes sense to boost your private pension to increase your overall retirement nest egg in light of the high cost of living and frozen income tax thresholds.
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About the Pension Scheme
You can also open a new pension with Scottish Widows, Lloyds’ own pension provider.
For close-to-retirees, the bank tailors pensions based on age and retirement planning, investing for growth opportunities, and moving portfolios into low-risk investments.
It requires a minimum deposit of £5,000 or a monthly payment of £150 to open a ready-made pension, and a transfer amount of $10,000 to transfer funds from an existing pension.
Who is eligible for the pension?
The Lloyds Ready-Made Pension will initially only be available to Lloyds Bank, Halifax, and Bank of Scotland customers.
About 7 million customers already check their pensions every week using their banking app, according to the banking giant. It has 21.5 million customers who regularly use online banking.
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Are there any fees associated with Ready-Made Pensions?
In addition, Lloyds Ready-Made Pensions will charge an annual account fee of 0.3 percent, or a minimum of £5 per month.
A transaction cost of 0.14 percent is added to the ongoing investment charges of 0.24 percent.
Compared to Pension Bee, its fees decrease as your savings grow. Pension savers will pay between 0.50 percent and 0.95 percent depending on their plan.
Lloyds Bank’s ready-made pension service has no exit fees or drawdown fees.
As compared with the rest of the market, Tapper said the offer seemed to be ‘reasonably competitive’.
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