The digital savings and investment app has unveiled its self-invested personal pension (SIPP) allowing new and existing users to start saving for retirement via a choice of three tracker funds:

• BlackRock LifePath fund – a ‘lifestyle’ fund that de-risks investments as you near retirement
• Fidelity World Index fund (63% in US, investing in stocks such as Apple, Microsoft, Amazon and Facebook)
• Old Mutual World ESG Index fund – socially responsible investment option (63% in US, investing in stocks such as Microsoft, Alphabet, Johnson & Johnson and Procter & Gamble)

It said it will look to extend its investment options if it sees demand.

Investors can start saving with £1 and charges for the pension include a 0.45% annual platform fee for balances up to £100,000 (0.15% for balances above). Fund provider costs range from 0.12% to 0.30%.

Moneybox, which has notched up 400,000 customers across its ISA, general investment and savings accounts, is also offering users the chance to consolidate their old workplace pension pots into the SIPP by giving their provider name and account number.

By transferring existing pots to Moneybox, customers will be able to track their progress, see where their money is invested and what fees they are paying.

It comes as Moneybox research revealed many people lack basic information about their pensions.

It found 60% of millennials don’t know how to access old pension pots, 87% don’t know what their money is invested in, and 89% don’t know what fees are being charged.

With the average person now having 11 jobs during their career, Moneybox said it’s more important than ever for people to have access to their old pensions, understand what they have, what they’re paying, and what they are on track for in later life.

As with the other products Moneybox currently offers, the investment cycle means it can take up to 11 days by the time money is debited from the user’s bank account to the funds being invested and settled. The exact timing will also depend on the fund manager.

The Moneybox SIPP also has a contributions feature which allows users to round up their spends with the money going directly into their pension.

For example, if your weekly coffee costs £2.60, 40p (rounded up to £3) would be transferred to your pension. Moneybox claims it is the only provider allowing customers to round up their everyday spending into a pension.

The waiting list for the Moneybox pension opened in April 2019 and attracted 100,000 sign-ups.

‘Pension fit for modern life’

Ben Stanway, Moneybox co-founder, said: “The overwhelming level of interest we’ve seen so far in our pensions service demonstrates a real appetite for change in an industry that has been difficult and confusing for customers for too long.

“It has been fantastic to work with our beta customers to create a product that suits their needs and is fit for modern life. So far we’ve helped thousands of customers consolidate millions of pounds, and we can’t wait to help many more people take control of their financial future.”