Although you can invest in any project on Abundance from £5, we have had to place a minimum investment of £5,000 for the Abundance Pension. This is because fees and charges apply on the Abundance Pension, and if you have invested funds of less than £5,000 these fees will have a significant impact on your returns and so will reduce the benefits of using the Abundance Pension.

As a SIPP, the Abundance Pension attracts tax benefits which reduce the effective cost of this initial investment. New contributions into the Abundance Pension attract an immediate tax relief of 20%, which is deposited directly into your Abundance Pension for investment, meaning you only need to make new contributions totalling £4,000 to meet the minimum investment level. Higher rate tax payers can also claim an additional 20% tax relief on contributions via their tax return, further reducing the effective cost of this initial investment to £3,000. Transfers into the Abundance Pension from another pension need to be a minimum of £5,000 as all applicable tax reliefs have already been applied to these contributions from your existing provider.

Please note that tax relief levels on pension contributions are subject to change by HMRC. There is also a maximum amount of pension subscriptions that you can make each year, which depends on your tax situation and the value of subscriptions you have made into other pensions. The Abundance Pension Key Features document has more details on maximum investment levels you can make in the Abundance Pension.

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