If you're considering a retirement investment product aligned with ethical principles, a Wealthify SIPP may be worth investigating. With options for investing in shares, bonds, and property, with the added benefit of ethical investment options to meet your values.

A recent study found that a single person needs at least £14,400 a year for basic needs in retirement, while the full State Pension is £11,502.04—leaving a significant gap and proving that a Wealthify SIPP could be a strategic move to bolster your retirement savings.¹

At EveryInvestor, we've examined the Wealthify SIPP to help you make informed retirement decisions, with all our content being thoroughly reviewed for accuracy and relevance.

Keep reading to learn how a Wealthify SIPP could support your retirement savings and ethical goals...

What Is Wealthify & How Does It Work?

Wealthify is a UK-based robo-advisor that works by providing investment services designed to help individuals grow their wealth, and offering a range of products that include general investment accounts, Individual Savings Accounts (ISAs), and a Self-Invested Personal Pension (SIPP).

Wealthify simplifies the investment process by using technology to create diversified portfolios based on your risk tolerance and financial goals.

Let's find out more:

What's a SIPP?

A Self-Invested Personal Pension (SIPP) is a type of personal pension scheme available in the UK that provides individuals with more control over their retirement savings.

Unlike traditional pensions, a SIPP allows you to select and manage a wide range of investments, such as equities, bonds, and even real estate, within your pension portfolio.

SIPPs are a popular choice for those who prefer its flexibility and a hands-on approach to their pension investments.

How Does the Wealthify SIPP Work?

The Wealthify SIPP works by offering a flexible and hands-off way to save and invest for retirement; this gives you the freedom to invest according to your values and risk tolerance.

After selecting a risk level that suits your preferences, Wealthify's expert team will manage your investments, ensuring they align with your chosen strategy.

Your funds are securely held by Embark Investment Services Limited, providing a trusted framework for your retirement savings.²

Wealthify offers 2 types of SIPPs:

• The Wealthify Pension: A standard SIPP that focuses on diversified investment strategies.
• The Ethical Pension: A SIPP option that prioritises socially responsible and ethical investment choices.

Who Is Eligible for a Wealthify SIPP?

UK residents over 18 and under 75 are eligible for a Wealthify SIPP.

What Are the Benefits & Drawbacks of a Wealthify SIPP?

The benefits and drawbacks of a Wealthify SIPP depend on your investment needs, but typically, Wealthify offers a simple, low-cost way to invest in a SIPP with great ethical investment options; however, drawbacks include limited fund choices compared to full SIPPs and higher fees for smaller balances.

Check out if SIPPs are a good idea for you:

What Are the Benefits of a Wealthify SIPP?

The benefits of a Wealthify SIPP include access to a professional investment management team that uses a combination of financial algorithms and industry experience.

Other advantages are:

• Contributions are flexible.
• You can open a SIPP with as little as £50.
• The Wealthify SIPP is backed by Aviva.
• You will have online access to monitor your investments.
• You will be able to choose ethical and socially responsible investments.

What Are the Drawbacks of a Wealthify SIPP?

The potential drawbacks to a Wealthify SIPP include the relatively limited investment choices when compared to other SIPPs.

Other potential drawbacks include:

• Your employer will not currently be able to contribute to your SIPP.
• Wealthify does not yet support Carry Forward (which would allow you to carry over any unused allowance from the previous tax year).³
• As charges are calculated based on investment size and performance, there is a potential for higher fees.
• You cannot choose your own stocks to invest in.

What Should You Consider Before Choosing a Wealthify SIPP?

Before choosing a Wealthify SIPP, you should consider your investment goals, desired level of involvement, and fee expectations.

Here's what you need to think about:

What Are the Fees & Charges for a Wealthify SIPP?

The fees and charges for a Wealthify SIPP applies a 0.6% annual management fee, plus fund charges and transaction costs.⁴

There are no fees for deposits, withdrawals, transfers, or account closures, making it a cost-effective option for long-term retirement savings.

These additional costs vary but typically include:

• Original Plans: Around 0.16%
• Ethical Plans: Up to 0.7%
• Investment Platform Fee: 0,25% of the account value per year.
• Fund Charges: Vary by fund selection, typically between 0,2% and 0,5% of the investment value per year.
• Government Levy: 0,01% of the account value per year.

What Investment Options Does Wealthify SIPP Offer?

Wealthify SIPP provides 2 investment choices: the Original SIPP and the Ethical SIPP.

Before selecting a Wealthify SIPP, it's important to assess your financial goals and ethical considerations.

Here's a bit about your options:

• The Original SIPP offers a diversified portfolio managed by experts.
• The Ethical SIPP focuses on socially responsible investments, avoiding companies that harm the environment or society, though it comes with higher fees.

How Flexible & Accessible Is the Wealthify SIPP?

Wealthify offers flexibility and accessibility through its digital platform, where users can easily manage their accounts and adjust risk levels at any time to suit financial goals and tolerance.

Additionally, the platform provides the option to make regular or one-off contributions, giving you full control over how you invest and manage your retirement savings.

What Are the Tax Benefits & Implications of the Wealthify SIPP?

Contributions to a Wealthify SIPP may benefit from tax relief, which can help boost your retirement savings, and the amount of relief depends on your personal tax situation.

However, it is important to consult a tax adviser to understand how the tax benefits apply to your individual circumstances and to ensure that you are maximising any available tax advantages.

What Are the Withdrawal & Retirement Options with a Wealthify SIPP?

The Wealthify SIPP offers flexibility when it comes to withdrawals after retirement; typically, you can take up to 25% of your pension pot as a tax-free lump sum, with the remainder being subject to income tax upon withdrawal.

It’s important, though, to consider the associated rules and tax implications, so always consult with a financial adviser to make informed decisions.

Are There Penalties for Early Withdrawal from a Wealthify SIPP?

Yes, there are penalties for early withdrawal with a Wealthify SIPP, as withdrawing funds before the typical retirement age of 55 can lead said penalties and tax consequences.

SIPPs are designed to incentivise long-term saving for retirement, with tax relief available on contributions, so taking money out early may result in paying higher tax rates on those funds, diminishing the overall benefit of the pension.

However, in some exceptional cases, such as severe health conditions, early access to your funds may be allowed, but these situations are limited.

What Are the Withdrawal Options for a Wealthify SIPP?

Wealthify offers flexible withdrawal options for SIPP clients, including lump sum and flexi-access drawdown.

You also have the option to transfer to another SIPP or take full drawdown, depending on your needs.

While Wealthify doesn’t provide annuities, you can purchase one from another provider if that better suits your retirement plans.

What Customer Support Options Does Wealthify Offer?

Wealthify provides multiple customer support options, including online chat, email, and phone support.

Their customer service team is known for being responsive and helpful, ensuring that users can easily get assistance with their accounts or investment queries.

What Are the Contribution Limits of a Wealthify SIPP?

​For the 2024/2025 tax year, the annual contribution limit for a Wealthify Self-Invested Personal Pension (SIPP) is £60,000, or up to 100% of your income, whichever is lower.

This limit includes all contributions made by you, the government, and any employer contributions.

It's important to note that if your income exceeds £260,000, your annual allowance may be reduced due to the tapered annual allowance rules; additionally, if you have no earnings, you can still contribute up to £3,600 per year (including tax relief) to your SIPP.⁵ 

Who Is a Wealthify SIPP Suited to?

A Wealthify SIPP is ideal for individuals seeking a low-cost, user-friendly option to manage their retirement savings—it is particularly well-suited for those who prefer a hands-off investment approach, as Wealthify provides pre-made investment plans managed by professionals.

This product is also beneficial for those looking for a diversified portfolio tailored to their chosen risk profiles.

Additionally, the option to invest ethically makes Wealthify an attractive choice for those wanting to align their retirement savings with their values.

Wealthify SIPP vs. Competitors: A Comparative Analysis

When comparing the Wealthify SIPP to other popular providers such as Nutmeg, Fidelity, and Charles Stanley, Wealthify offers competitive fees and a strong focus on ethical investment options.

While some competitors may provide a broader range of investment choices, Wealthify distinguishes itself through its excellent customer service, making it an attractive option for those seeking a cost-effective, user-friendly SIPP with the added benefit of ethical investment opportunities.

What Do Customers Say About Wealthify SIPP?

Overall, Wealthify's SIPP receives positive feedback, with a solid 4 out of 5-star rating on Trustpilot.⁶

Customers appreciate the platform's low fees, user-friendly interface, and ethical investment options, however, some users have expressed a desire for a broader range of investment choices.

Despite this, Wealthify's reputation for simplicity and ethical investing remains a key selling point for many.

How Do You Get Started with Your Wealthify SIPP?

To get started with your Wealthify SIPP, you'll need to create an account on their website and choose from a range of investment portfolios based on your risk tolerance and preferences, and you can also use their pension calculator to get an idea of how much you need to save.

Wealthify will then manage your investments, and you can monitor the performance of your SIPP through their online platform.

Here's what you need to know:

How Do You Open a Wealthify SIPP?

To open a Wealthify SIPP, you need to choose your account type, select an investment plan that aligns with your risk profile, and provide personal details.

Here’s a full breakdown on what you need to do:

1. Choose Your Account Type – Select the SIPP option that suits you best.
2. Select Your Investment Plan – Choose from Wealthify's pre-made investment plans based on your risk profile.
3. Provide Basic Details – Fill in personal information to set up your account.
4. Fund Your Account – Transfer funds into your SIPP account.
5. Pick Your Investments – Choose from a variety of investments and let Wealthify's experts manage them for you.

To complete the process, you will need to meet a few requirements, including:

• Identification: A valid form of ID (e.g., passport or driver’s licence).
• Address Verification: Proof of address (e.g., a recent utility bill or bank statement).
• Financial Information: Bank details for fund transfers.
• Tax Identification: Your National Insurance number.
• Previous SIPP Details (if applicable): Information for transferring from another provider.

Does Wealthify Offer a Pension Calculator?

Yes, Wealthify offers a pension calculator that helps you estimate how much you’ll need to save for retirement; by entering key details such as your age, income, and desired retirement age, the calculator provides an estimate of the potential future value of your SIPP.

This tool is invaluable for checking whether your current contributions align with your retirement goals, and if the estimates fall short, you can adjust your contribution levels or retirement plans accordingly.

How to Log in to Your Wealthify Account

Logging into your Wealthify account is easy; simply visit the Wealthify website or use the mobile app, then click ‘Login’ and enter your email and password.

Once logged in, you can view your investments, track their performance, and make necessary adjustments, and if you encounter any issues, their customer support team can help you recover your account or reset your password.

With regular updates, Wealthify’s platform remains user-friendly and uses secure login processes to protect your personal and financial data.

What Are the Regulatory & Contact Details of Wealthify?

Wealthify, operating as Wealthify Limited, is a registered company in England and Wales (company number 09034828);⁷ it is authorised and regulated by the Financial Conduct Authority (FCA) under reference number 662530.⁸

Additionally

To contact Wealthify, their office is located in Cardiff, Wales, and their customer support team is available to assist with any queries regarding your SIPP or investments.

For more detailed assistance, you can use the following contact details:

• Phone: 0800 802 1800
• Email: Secure contact form via the Wealthify website
• Post: Tec Marina, Terra Nova Way, Penarth CF64 1SA

If you prefer written communication, Wealthify also offers a secure messaging option within your account.

Common Questions on Wealthify's SIPP

In Conclusion

If you’re weighing your retirement savings options, Wealthify’s modern, digital platform offers a seamless solution for many, though while its features are certainly appealing, ensuring compatibility with your personal goals is crucial.

A conversation with a qualified financial adviser can provide clarity and help tailor the platform to your unique needs, ensuring you make the most of your retirement planning.

Before making a decision, take a moment to assess whether the Wealthify SIPP aligns with your investment aspirations and long-term financial objectives.