AES independent review - Who is Momentum Pensions?

Each of Momentum Pensions' jurisdictions are fully regulated:

Malta: Momentum Pensions Malta Limited is licensed as a Retirement Scheme Administrator by the Malta Financial Services Authority (MFSA), Company Registration Number C 52627.
Isle of Man: Momentum Pensions Limited is registered as a Retirement Benefits Scheme Administrator by the Isle of Man Financial Services Authority under registration number RA102.
Gibraltar: Momentum Pensions (Gibraltar) Limited is regulated by the Gibraltar Financial Services Commission as a Pension Scheme Operator for the Momentum Gibraltar Pension Plan, holding permissions under the Gibraltar Financial Service Act 2019 to carry out the regulated activities of establishing, operating or winding up a Personal Pension Scheme under Permission Number 19015.

Momentum Pensions mainly offers two products in these well known offshore jurisdictions:

Lite QROPS
Plus QROPS

Let's take a detailed look at each of these offerings.

1. Lite QROPS:

Momentum Pensions' Lite QROPS is available for transfers or investments of up to £100,000 in value.
In general, a QROPS solution can offer many benefits. You should discuss the options most suitable to your circumstances with a regulated financial planner.
Their QROPS products are available through Malta, Gibraltar and the Isle of Man where some local variations may apply.

2. Plus QROPS:

Momentum Pensions' Plus QROPS is available for transfers or investments of over £100,000 in value and adds some additional layers of choice, flexibility and sophistication to your options.
Similar to Lite QROPS, their products are available through Malta, Gibraltar and the Isle of Man where some local variations may apply. Your regulated financial planner can help you find the most suitable jurisdiction for you and understand the different arrangements within each jurisdiction.

The key features of the Lite and Plus QROPS offered by Momentum Pensions are:

Your retirement benefits may be drawn at any time between the ages of 55 and 75.
You can withdraw up to 30% of the accumulated fund, when benefits have started as a pension commencement lump sum (PCLS).
Pension commencement lump sums are paid free of tax across all jurisdictions.
Across Momentum Pensions' QROPS jurisdictions, there is an extensive network of Double Tax Treaties, which allows income to be paid gross, where an effective treaty is in place. Malta leads the way with the number of treaties.
They also offer flexible drawdown options.
The option to rebase the currency of the scheme to that of the residence of the member.
No Lifetime allowance cap in place once you transfer to a QROPS.
They give you the ability to pass 100% of your residual pension assets to your beneficiaries on Death.
Free transfers to any other Momentum QROPS or SIPP product should client circumstances change.

The fee schedule for Momentum Pensions' Lite QROPS is the same for Malta, Gibraltar and Isle of Man:

	Lite Scheme
Type of investment	Approved Investment Companies
Minimum transfer value	£40k
Maximum transfer value	£100k
Set-up fee	£300
Annual trust fee	£525
Number of free pension transfers	4
Additional pension transfer fee	£250

The Fee schedule for Momentum Pensions' Plus QROPS is also the same for Malta, Gibraltar and Isle of Man:

	Plus Scheme	Plus Scheme
Type of investment	Approved Investment Companies	Nominated platform
Minimum transfer value	£100k	£40k
Maximum transfer value	No limit	No limit
Set-up fee	£645	£895
Annual trust fee	£895	£945
Number of free pension transfers	4	4
Additional pension transfer fee	£250	£250

NOTE:

There is an additional termination fee for the Lite QROPS in Isle of Man. Years 1-5: £1500 Year, 6 onwards: £1000.
These may change from time to time and we would recommend checking Momentum Pensions' website for the latest rates.

In line with the investment policy your pension trustees adopt, Momentum’s Malta, Gibraltar and Isle of Man QROPS schemes can hold many types of investments, albeit with a few restrictions.

You can learn more about Momentum Pensions' QROPS investment guidelines in the documents and FAQs section of this review.

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The Pros

> One of the world's leading pension specialists

> Transparent and easy to understand fee structure

> Stong technical and administrative support team

> Free transfers to any other Momentum QROPS or SIPP product should a client's circumstances change

The Cons

> Sub £40,000 options are tied to one investment solution thus reducing choice

> Termination fee applies where all retirement benefits are taken under flexi-access drawdown or where benefits are transferred to an external pension scheme

What are the dealing charges of Momentum Pensions?

They are as follows:

Funds with EU/UK ISINS, Insurance Company Funds, Listed Equities on major exchanges, ETFs, Deposits and Government Bonds - Acceptable Grade	£10
Funds with Non-EU/UK ISINS	£15
Non-Standard Funds, Corporate Bonds, Non-Standard Securities/Instruments or Structured Notes	Maximum £20
Sale Trade Request	£5
FX Request	£Nil

NOTE: The above charges are applicable per requested trade and may be collected on an on-going basis or accrued and collected in arrears.

Actual charges may vary based on the level of analysis required or information publicly available, as determined at the discretion of the Trustees.

Insurance Company Funds refer to funds marketed by an Insurance Company as their own range of funds.

Can I invest in structured notes?

Momentum Pensions has certain QROPS investment guidelines which state:

Where products with underlying capital guarantees are chosen, i.e. structured notes, these will be permitted up to a
maximum of 25% of the portfolio’s value.
No more than 12.5% of the portfolio may be subject to the same issuer/
guarantor default risk, who must be rated as investment grade by an acceptable credit rating agency.
Additionally, structured notes will only be accepted at the discretion of the Trustees.

What can I invest in?

Both Lite QROPS and Plus QROPS offered by Momentum Pensions in all 4 jurisdictions allow you to invest in various assets using Momentum's approved life companies or nominated platforms.

You can learn more about it in the documents section of this review, under "Investment Guidelines".

What are Momentum's pension scheme benefits in Malta?

The Malta pension scheme benefits can be summaried below:

Your Retirement Benefits may be drawn at any time between the ages of 55 and 75.
You can withdraw up to 30% of the accumulated fund, when benefits have started, as a pension commencement lump sum (PCLS)2.
No Maltese tax on your PCLS.
Malta has an extensive network of Double Tax Treaties, which allows income to be paid gross, where an effective treaty is in place.

What will happen to Momentum's Gibraltar pension scheme in the event of death?

In the event of death, any remaining fund paid to your beneficiaries as a lump sum will be paid without any deduction of Gibraltar tax.

Where a beneficiary elects instead to take all or any part of the remaining fund as a pension income, Gibraltar income tax at a rate of 2.5% will apply on each income payment.

Please note, If death occurs after age 75 and the conditions set out above for a transfer before or after the 6th of April, 2017 apply, the person who inherits the remainder of the funds may pay UK tax on the benefits.

What options does the Momentum Isle of Man pension plan offer at retirement?

The Momentum Isle of Man Pension Plan offers the following options at retirement:

A Pension Commencement Lump Sum of up to 30% of the accumulated fund, and/or
Income benefits may be taken as regular payments with the maximum annual payment based on the UK Government Actuary’s Department (GAD) rates, and/or
Option to purchase a pension annuity from an insurance provider.

On death, the Trustees may pass these benefits on to your beneficiaries either by way of a lump sum payment or alternatively an income.

What are the QROPS schemes available on the Isle of Man?

Their pension scheme is the Momentum Isle of Man Pension Plan.

They have 3 levels of membership available depending on your circumstances and the underlying investment structure chosen.

QROPS Lite – For transfers or investments up to £100,000 in value, using an approved investment.
QROPS Plus – For transfers or investments greater than £100,000 in value, using an approved investment.
QROPS Pro – For all Pension Schemes where a complete open architecture flexible investment approach is required.

Very pleased

Judging by what I've read in these reviews, I was one of the lucky few who wasn't ripped off with my pension transfer.

My adviser (I chose Chartered) seamlessly facilitated the transfer of a series of my pensions to Momentum.

Fees and charges are reasonable, service levels excellent and growth is strong.

Good service level

I transferred to Momentum Pensions, and then transferred to another of their QROPS later on...

Very happy with the level of service I have received overall.

Expert assessment of Momentum Pensions

Our verdict is that Momentum offers one of the best all round solutions currently available on the market.

However, because Momentum Pensions operate globally, existing clients run the risk of potentially holding risky and expensive assets through unnecessary and opaque investment bonds.

Read the UK regulator’s advice on pension transfers.

Never deal with a firm that isn’t authorised as a UK pension transfer specialist.

Our advice would be to seek professional, fee-based and independent advice if you have an existing SIPP or QROPS with Momentum Pensions or iPensions Group.

For pensions worth £500,000 or more, we recommend contacting us for a Second Opinion.

Momentum was established in 1998 to deliver high quality pension products to the marketplace. Today they have 10,000 clients via 560 key advisers, and £2 billion of assets under administration.

Momentum Pensions provide comprehensive access to three jurisdictions, namely:

Malta
Gibraltar
Isle of Man

They also offer a fourth jurisdiction, UK, under the name 'iPensions Group'. In July 2020, the SIPP business rebranded to iPensions Group. You can learn more about their UK offerings in our independent review of iPensions Group.

Momentum
Pensions

An independent review by our team of experts

REVIEW SUMMARY