Penny: A simple pension finding and consolidation app with excellent portfolio returns

Penny is designed to be the perfect entry point for those who are aware they may have lost pensions, but aren't sure how to track them down. The platform does a great job of removing the jargon and makes everything as simple and straightforward as could be. To be clear though (because I'm not sure it's immediately obvious on the Penny website), this isn't just a pension tracing service, this is a service for those who want to transfer those lost pensions into a brand new SIPP - that's a self-invested personal pension. You'll then have control over how those pensions are invested in one, consolidated pot.

Penny starts by gathering some basic information. As with all pension finding services, you'll need the names of your old workplaces and you'll need to know which pension provider the company pension was with. But that's all you'll need - no need to panic if you don't have reference numbers or the exact dates you worked there, for example. Penny then contacts the relevant providers on your behalf to find out what you have. Of course, you don't have to have lost your pension to use Penny. You could just be looking to transfer old work pensions that you receive annual statements for, but don't otherwise give much thought to. It's always worth checking how much you're paying for those pensions to stay where they are and seeing if you could be losing less in fees, or getting better investment returns, by moving them elsewhere.

Penny's fees are kept clear and fair. Annual management fees are 0.58%, and there's a fund fee to pay, which varies depending on which of the three funds you choose. Fund fees are usual, whichever provider you use and, as they go straight to the fund manager (Vanguard or HSBC in Penny's case), they get taken straight from your pension pot.

With just 6 investment options (named Cautious, Conservative, Balanced, Dynamic, Adventurous, and Ethical) you're spared the mind-boggling decision-making process that you're faced with at larger brands. That's probably a welcome relief if you're new to investing. But it does mean more experienced investors will probably find this service too basic. Penny is probably the most pared back pensions app I've reviewed. PensionBee, another app billed as the easy way to take control of your pensions, has 8 different pension plans, by comparison.

Historical performance on those plans has been good - superb in the case of Penny's Adventurous, Ethical, and Balanced funds. With no choice to self-select individual stocks on this platform, strong fund performance is crucial. Penny's choice of funds has been serving their customers very well overall. (Remember, however, that past performance does not guarantee future returns and all investing involves risk.)

Penny's customer services department also has a strong reputation. So, if you're comfortable using apps to manage your finances and you want absolute simplicity at a competitive price, then Penny might just be your perfect self-invested pension solution.