Nutmeg, a UK-based online wealth manager, has launched its first personal pension plan to take on the likes of Hargreaves Lansdown in the Sipp market.

The pension plan has a minimum investment of £5,000 and primarily uses exchange-traded funds.

The company will charge one annual management fee of between 0.3% and 1%, including VAT, based on how much a customer has contributed to their Nutmeg funds.

However, the service will be free of set-up charges , exit penalties or commission fees.

Describing the new service as evolutionary in retirement saving founder and chief executive Nick Hungerford said, "We’ve listened to our customers and delivered what they truly want. In an industry embroiled in hidden charges, fees and complexity, our transparency promise will be a welcome reassurance to customers.

"The notion of receiving bi-annual pension statements in the post is incredibly archaic. You should be able to see where your pension pot is invested and how it’s performing whenever you want."

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Customers will also be able to transfer from other providers, and have the option of consolidating all their personal pension pots into one online account.

At the same time, the company will automatically add the 25% government top-up on customers’ net personal monthly contributions.

The pension plan will be operated and administered by Hornbuckle, while Hornbuckle company Embark Trustees will serve as the trustee.