Wealthify Review 2024: Pros & Cons

Wealthify stands as a prominent robo-advisor investing platform, providing a hassle-free investment solution for individuals seeking a hands-off approach to portfolio management.

Owned by Aviva , Wealthify has gained recognition for its cost-effective robo-advisor fees, making it an appealing choice, especially for those with smaller portfolios. As a well-established player in the UK's robo-advisor landscape, Wealthify combines technology with human expertise to offer users a convenient means of saving and investing.

Utilizing smart algorithms and the backing of Aviva, Wealthify endeavors to simplify investment processes, allowing users to manage their portfolios effortlessly through a user-friendly app and website.

Wealthify's inception in 2016 marked the entry of a Cardiff-based digital investment management company into the market. Acquiring a majority stake in 2017, Aviva's support has contributed to the platform's growth. While Wealthify operates primarily online through its digital interfaces, it also provides users with the option to engage with human advisors over the phone, blending technological efficiency with personalized assistance.

Account Options

We will now delve into the account options that Wealthify offers

1. General Investment Account (GIA):
   • Standard account without tax-free benefits.
   • Enables multiple accounts across different investment platforms.
   • Capital Gains Tax applicable on profits above £6,000.
   • Allows investment in a variety of assets.
2. Stocks & Shares ISA (Investment ISA):
   • Tax-free investment up to £20,000 annually.
   • Excludes Capital Gains Tax, Income Tax, and Dividend tax.
   • Limit of one Stocks & Shares ISA per tax year.
   • Not a flexible ISA; withdrawals and re-additions count toward the allowance.
3. Personal Pension (SIPP):
   • Tax-free pension savings with a 25% government bonus.
   • Additional tax relief for higher-rate taxpayers (40% and 45%).
   • Contribution limit: Total income each year or £60,000, whichever is lower.
   • Withdrawals allowed from age 55 (57 from 2028).
4. Junior ISA (JISA):
   • Savings account for children, tax-free.
   • Annual investment limit of £9,000.
   • Operated by parents or guardians, accessible by the child at age 18.

Wealthify provides a diverse suite of accounts catering to different financial objectives and investor preferences. From tax-efficient options like the Stocks & Shares ISA to long-term savings through Personal Pensions and Junior ISAs, users have the flexibility to choose accounts aligning with their financial goals and preferences

Wealthify Fees

• Platform Fee: Wealthify charges a flat annual fee of 0.6%, irrespective of the invested amount. This fee is deducted monthly based on the total value in the account.
• Investment Fees: In addition to the platform fee, investors pay fees for the chosen investment plan (original or ethical). The average cost for the original plan is an additional 0.16%, while the ethical plan incurs an extra 0.7%.
• Total Annual Cost: For the original plan, the total annual cost is approximately 0.76%, and for the ethical plan, it's around 1.30%.
• Comparison with Competitors: Wealthify's fees compare favorably with competitors. For the original plan, it is the cheapest option among Wealthify, Moneyfarm, and Nutmeg for portfolios up to £50,000.
• Adjustments for Portfolio Size: Unlike some competitors, Wealthify maintains a consistent fee (0.6%) regardless of the portfolio size. Competitors like Moneyfarm and Nutmeg offer reduced fees for larger portfolios.
• No Hidden Fees: Wealthify's fee structure is transparent, with no hidden charges for deposits, withdrawals, or account types.
• Flexible Investment: Wealthify allows users to start investing with just £1 and doesn't impose a minimum monthly fee.
• Additional Services Covered: The fees cover various services, including creating a personalized investment plan, ongoing portfolio adjustments, 24/7 app and online service access, customer support, market insights, and buying/selling investments.
• Ethical Investing Cost: Opting for the ethical plan incurs higher fees, making it more expensive compared to the original plan. However, it provides an ethical investment choice for those interested in sustainable investing.
• Comparison with Competitors (Portfolio Size): Wealthify's consistent 0.6% fee becomes a cost-effective option for lower portfolios, making it a more affordable choice for investors with limited funds.

Wealthify's fee structure is straightforward, offering competitive rates and flexibility for investors at various stages, with an emphasis on transparency and accessibility.

Is Wealthify Safe?

Yes, Wealthify is deemed safe for investors, backed by the following assurances:

• Regulation by FCA: Wealthify is authorized and regulated by the Financial Conduct Authority (FCA) . This regulatory oversight ensures that Wealthify complies with financial regulations and safeguards customer interests.
• Financial Services Compensation Scheme (FSCS): Wealthify is covered by the FSCS , providing protection for customers' funds. In the event of any issues, such as Wealthify going out of business, customers are eligible for compensation up to £85,000.
• Asset Protection: Customer investments with Wealthify are held in the investors' names, providing an extra layer of protection. These investments are held with financial institutions that Wealthify cannot access directly, adding security to customers' holdings.
• Ownership by Aviva: Wealthify is owned by Aviva, a prominent financial services company. Aviva's ownership adds an additional layer of credibility and financial stability to Wealthify.

Overall, the combination of FCA regulation, FSCS protection, asset protection, and ownership by a reputable financial institution like Aviva contributes to the safety and security of Wealthify for investors.

Wealthify Customer Reviews

Wealthify receives positive feedback from customers, as reflected in the following ratings:

• Trustpilot Score: Wealthify has a score of 4 out of 5 on Trustpilot , based on over 2,200 reviews. This rating is noteworthy in the financial services sector, where customer satisfaction can be challenging to achieve.
• User Reviews: Customers appreciate the ease of use, user-friendly app, and the convenience of getting started with Wealthify. The positive comments also extend to commendations for excellent customer service through phone and live chat.

Overall, Wealthify's customer reviews highlight its strengths in providing a straightforward and customer-friendly investment platform, contributing to its positive reputation among users.

Wealthify Pros Overview

Wealthify offers several advantages to users, making it an attractive investment platform:

• User-Friendly Interface: Wealthify provides an easy-to-use platform, making it accessible for investors at various experience levels.
• Low Minimum Investment: Users can start investing with as little as £1, and even as low as £50 for pension accounts, allowing for flexibility and accessibility.
• Excellent Customer Service: Wealthify receives praise for its great customer service, including support through phone and live chat, enhancing the overall user experience.
• Reasonable Fees: The platform offers reasonable fees, particularly for the original investment option, making it an appealing choice for cost-conscious investors.
• Diverse Account Options: Wealthify caters to different investment goals by offering various account types, including General Investment Accounts, ISAs, and Pensions, providing users with flexibility and choice in their investment strategies.

Wealthify Cons Overview

While Wealthify offers notable advantages, there are some considerations for potential users:

• Higher Cost for Ethical Investing: Wealthify's ethical investment option comes with relatively higher costs, which could be a drawback for users specifically interested in socially responsible investing.
• Lack of Flexibility in ISA: Wealthify's ISA is not flexible, meaning that if users withdraw and re-add money, it counts as new money against their ISA allowance. This lack of flexibility may be a limitation for some investors.
• No Lifetime ISA: Wealthify does not offer a Lifetime ISA, which might be a disadvantage for individuals looking for a tax-efficient savings option specifically designed for buying a first home or saving for retirement.
• Portfolio Performance: Some users have noted that the portfolio performance of Wealthify is not as competitive as some other platforms in the market. This is an important factor to consider for investors focused on maximizing returns.

Wealthify - Final Thoughts

Wealthify stands out as a user-friendly investment platform, making investing accessible even for beginners. With a low starting investment requirement of just £1 (£50 for pensions), it caters to a wide range of users. The hassle-free approach, where experts manage portfolios to grow investments over time, is particularly appealing to those with little investment knowledge.

The platform's customer service, available through phone and live-chat, receives positive feedback, contributing to a positive user experience. Wealthify's fee structure is reasonable and straightforward, although the ethical investment option comes at a slightly higher cost compared to some competitors.

Despite the cons, including the higher cost for ethical investing and the lack of flexibility in the ISA, Wealthify earns a solid 4-star rating. The platform offers a value-for-money, passive investment option, especially suitable for those starting with smaller portfolios. However, for larger investors, the annual flat fee structure may be less competitive compared to other robo-advisors. Overall, Wealthify is a strong choice for investors seeking simplicity and ease of use in their investment journey.

As an alternative to Wealthify, consider exploring platforms like Moneyfarm , which also offers a range of investment options and personalized portfolios.