Whilst this list will provide you with a brief overview of the costs and investment choices at the best pension providers for retirement plans, I suggest you continue to read the rest of the article as there are other considerations that may affect your choice. If you’re still not sure about which pension provider to choose, consider a pension review with an independent financial advisor for pensions.
Top pension providers for May 2023
Browse my list of the best pension providers in the US
The best pension providers at a glance

Interactive Brokers
- Readymade portfolios available
- Large selection of different investments
- Over 18,000 no-transaction-fee mutual funds
Capital at risk.
M1 Finance
- No hidden costs or fees
- Choose from a wide selection of pre-built portfolios
- Select from a range of individual stocks and ETFs
Capital at risk.
SoFi
- Free career counseling
- No management fees
- $0 account minimum
We can’t take you to this site at the moment.
Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.
Betterment
- Great selection of low-cost funds
- Socially responsible investing accounts
- Annual Fee: 0.25 percent of assets
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Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.
Fidelity Investments
- Fund a Fidelity Investments account with at least $50 and receive $100*
- Wealth management services with a dedicated advisor
- Wide range of retirement accounts to pick from
We can’t take you to this site at the moment.
Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.

Charles Schwab
- Best choice for the self-employed
- Strong selection of IRA accounts
- An industry-leading broker
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Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.
Vanguard
- Leading low-cost retirement broker
- Strong track record and customer-first approach
- Low costs and fees
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Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.

Wealthfront
- Easy to manage robo-advisor funds
- Annual Fee: 0.25 percent of assets
- Min. Investment: $500 for investment accounts, $1 for cash accounts, and $0 for financial planning
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Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.
E*Trade
- Great all-round broker
- Free for no-transaction-fee funds
- Account minimum $0.00
We can’t take you to this site at the moment.
Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.

Merrill Edge
- A great choice for Bank of America customers, thanks to seamless transfers between accounts
- Commissions on stocks and ETFs: $0
- Complete range of brokerage services
We can’t take you to this site at the moment.
Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.
Ally Invest
- A good choice for hands-off investors
- Fees: 0.0% with Cash-Enhanced Managed Portfolio; 0.3% otherwise
- Min. Investment: $100
We can’t take you to this site at the moment.
Have you tried eToro?
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Other fees apply. For more information, visit etoro.com/trading/fees.
Capital at risk.
- Top pension providers for May 2023
- Top 7 retirement income funds
- What are the different types of retirement plans?
- What is the tax relief on IRAs?
- Can you transfer retirement plans?
- Choosing the best IRA
- How much money should you save?
- Are IRAs safe?
- Do I need financial advice to open an IRA?
- Which is the best retirement plan?
- IRA Pension FAQs
Top 7 retirement income funds
The table below shows the best retirement income funds in the US
 | Retirement Fund Name | TTM Yield | 10-year trailing return |
---|---|---|---|
1 | Vanguard Wellesley Income Fund Investor Shares (VWIAX) | 2.85% | 5.81% |
2 | Vanguard Wellington Fund Investor Shares (VWENX) | 1.89% | 8.8% |
3 | Vanguard Balanced Index Fund Admiral Shares (VBIAX) | 1.67% | 8.26% |
4 | Fidelity Strategic Income Fund (FADMX) | 3.10% | 1.46% |
5 | Dodge & Cox Income Fund (DODIX) | 2.1% | 2.42% |
6 | American Balanced Fund (ABALX) | 1.33% | 8.56% |
7 | Pimco Income Fund Institutional Class (PIMIX) | 4.64% | 4.8% |
Source: Morningstar
*Figures quoted correct at the time of publishing and are subject to change. See source for more information.
Best overall broker: M1 Finance
With no annual account fees and $0 commissions for online U.S. stock, ETF, and options trades M1 Finance is a broker that is hard to beat. And with a Roth IRA option with no annual account fees, no required minimum balance, and a wide selection of investment options it is a great choice of broker for retirement savings.

Best broker for active traders: Interactive Brokers
Investors who want to take a hands-on approach to their retirement fund are well served by Interactive Brokers’ IBKR Pro. Interactive Brokers encourage its customers to trade with its low trading fees, the possibility to invest in the global market, a strong selection of well-rated investment products, and relatively high inactivity fees.

Best broker for mutual funds: Vanguard
Vanguard represents one of the best brokers in the US for those looking to save for their retirement. With a selection of Personal Advisor Services and Digital Advisor services, Vanguard is a great choice for investors young and old.
Vanguard is a great choice for those wanting to create a diversified, ETF-based portfolio and has been consistently rated as one of the best brokers for long-term or retirement savers.
We can’t take you to this site at the moment.
Have you tried Interactive Brokers?
Capital at risk.

Best broker for low fees: E-Trade
E-Trade has some of the lowest-cost Roth IRA offers and is a great choice for those particularly concerned with costs. Recently acquired by Morgan Stanley the E-Trade brand is a reliable and trusted broker with access to 4,500 mutual funds with no loads and no transaction fees.
We can’t take you to this site at the moment.
Have you tried Interactive Brokers?
Capital at risk.

Best broker for investment options: Charles Schwab
Consistently rated as one of the best brokers in the US, Charles Schwab has made investing even easier for its customers, thanks to Schwab Stock Slices which lets investors get a piece of S&P 500 stocks for just $5.
Charles Schwab also provides its customers with 24/7 customer support and has strong research tools available to help navigate the markets and trading with confidence and ease.
We can’t take you to this site at the moment.
Have you tried Interactive Brokers?
Capital at risk.
What are the different types of retirement plans?
Paying into a retirement plan is the most efficient way to save for a retirement income. In the US there are two primary types of retirement plans available, namely defined benefit plans and defined contribution plans.
Defined benefit plans
A defined benefit plan is a retirement plan that is sponsored by a qualified employer. Typically, a defined benefit plan is a workplace pension, but can also include cash balance plans. In any case, such plans promise the recipient a defined cash amount upon retirement, with these benefits protected by the Pension Benefit Guaranty Corporation (PBGC).
However, in the US defined benefit plans are the exception, not the rule. In 1980, 83% of private sector workers had a defined benefit plan, at 2018 that figure stood at just 17%.
Defined contribution plans
A defined contribution plan is a plan in which the employee or the employer (or both) contribute to the employee’s individual account under the plan. The employee will ultimately receive the balance in their account, which is based on contributions plus or minus the performance of their investments.
Due to the fact that such plans are tied to the performance of investments their value will fluctuate. Examples of defined contribution plans include 401(k) plans, 403(b) plans, IRAs, employee stock ownership plans, and profit-sharing plans.
Do I have a workplace retirement plan?
Your employer may offer you access to a retirement plan, but you will need to check. In the US legislation is looking to ensure that small business employers offer state-mandated retirement plans.
Individual Retirement Account
The Individual Retirement Account, better known as the IRA,
Any individual in the US with an income is entitled to open an IRA account, to help secure their financial independence and security upon retirement.
There are three main types of IRA:
1. A traditional IRA
In a traditional IRA, contributions made into the account may be tax deductible whereby any withdrawals of pre-tax contributions and earnings are taxed as current income during retirement.
2. Roth IRA
In a Roth IRA, contributions made to the account are not tax-deductible, however, any withdrawals made are tax-free.
3. Rollover IRA
A Rollover IRA is an account where you can move funds from your prior employer-sponsored retirement plan into an IRA. Compared to an IRA you have lower fees, and your funds can continue to grow tax-advantaged.
Can I have a retirement plan and a private one?
Yes, you are free to save into more than one type of retirement plan, however, your contribution limits, remain the same across all your products.
Selecting an IRA
For people who are not enrolled in a workplace retirement plan, the quickest and easiest way to save for your retirement is by opening an IRA. Once you have chosen your provider you only have two choices remaining:
- The amount you wish to save each month
- The level of risk you wish to take
Some providers will even help you identify the level of risk, based on your age and attitude.
This type of retirement plan encourages younger savers to invest in stocks, usually 80%. As you age these riskier investments will be replaced with bonds and other safer investment options.
Charles Schwab, Vanguard, and Interactive Brokers are all highly recommended brokers with strong IRA offerings.
What is the tax relief on IRAs?
As mentioned earlier the traditional IRA will defer your tax contributions and a great way to maximize the tax benefits offered by the IRA is to split your contributions between a traditional IRA and a Roth IRA.
In a Roth IRA, you pay tax on your contributions but are able to make tax-free withdrawals upon retirement.
In a traditional IRA, the contributions you make to the account are tax-exempt, but your withdrawals are consequently taxed.
Can you transfer retirement plans?
Yes. Today most workers will have multiple jobs, each with their own plans that they may be automatically enrolled into. It is often a good idea to consolidate all these diverse funds into one, easy-to-manage pot rather than lots of little pots that are often left languishing and not maximizing your return on investment.
There are plenty of pension providers who will help you with this service and will provide you with a dedicated pension consolidation service that can help locate and transfer your retirement plans.
Be aware, that should you take out your pension as an unauthorized lump sum, this will be classed as an ‘unauthorized payment’ and you will subsequently be required to pay tax on the amount.
Some providers can levy a charge on transfers so it is best to speak to both your current provider and the provider you wish to move your pension savings to before conducting a transfer.
Choosing the best IRA
In order to find the best provider for your unique requirements you should take the following into consideration:
Your investment knowledge and experience
If you have no previous investment knowledge or experience, then you may want to consider an account with Sofi, Wealthfront, or Vanguard. The Wealthfront IRA fund is a comprehensive product and thanks to its leading robo-advisors is a great choice for hands-off investors.
For people with extensive investment experience who would prefer to manage their own investments, a platform like Merrill Edge or Fidelity would be a strong recommendation.
The size of your IRA
If you are transferring an existing retirement fund into your new provider, then you need to take into account the size of your fund in order to match yourself with the most cost-effective fee structure. Larger funds may benefit from a flat fee, whereas smaller funds or people who are just starting a pension, would benefit from a percentage fee structure.
Whether you are looking to consolidate multiple existing pensions
If you are looking to consolidate multiple existing pensions then you may want to consider a provider that has a consolidation service. They will do most of the leg work for you, potentially saving you a significant amount of time. Though you can do this work yourself by checking on websites such as MissingMoney.com and Unclaimed.org.
Annual fees and other charges
Always compare the fund fees and charges for any retirement plans you are considering ensuring you are aware of any annual fees, transaction fees, fund management costs, and also any hidden fees such as a one-off cost for transferring your investments, administration fees, and penalties.
How much money should you save?
This very much depends on your unique circumstances and what sort of lifestyle you wish to achieve in your retirement. However, as a rule of thumb, you should look to contribute a percentage of your salary that is half your current age.
Therefore, if you are 40 years old, you should be contributing 20% of your salary to your pension. There is also access to free pension calculators online so you can gain a picture of your financial future and check whether you are on track to reaching your retirement plans.
Are IRAs safe?
Yes, without a doubt, an IRA is a safe option, however, it is always prudent to ensure that the provider you are considering is authorized and regulated by the Securities and Exchange Commission. Also, brokers that are covered by the Securities Investor Protection Corporation (SIPC) will be protected against loss of cash and securities – such as stocks and bonds – held by a customer up to a limit of $500,000, which includes a $250,000 limit for cash.
Sadly, the sheer value of pensions can make them an appealing target for fraudsters and pension scams. This is why it is always prudent to check your provider is authorized by the relevant authorities such as the Securities and Exchange Commission, Employee Retirement Income Security Act, and others.
Do I need financial advice to open an IRA?
No. Anyone can open and manage their own retirement plan, and providers have now made pensions accessible to all walks of life. However, people with a high net worth or those who are already in possession of a substantial retirement fund may benefit from the services of a regulated financial adviser.
It is also often beneficial to seek the services of an independent financial adviser or pensions adviser when it comes time to draw your pension, as they assist with your retirement planning needs.
Remember there are costs associated with financial advice and whether or not this is cost-effective for you will depend solely on your unique circumstances.
Which is the best retirement plan?
The holy grail of retirement plans is the workplace-defined benefit pension. However, for people who are not employed by one of the few US employers that offer this plan, it isn’t a viable option, in which case a private pension would be the best option.
IRA Pension FAQs
Can I access my IRA tax-free?
When you reach retirement age you are able to withdraw money from your plan regardless of whether you have chosen to continue working. Depending on the type of IRA you have these withdrawals may be tax-free.Â
Should I go for an annuity or lump sum?
When it comes time to access your pension there are a number of options available including a lump-sum or annuity withdrawal. The annuity is, in most cases, the better choice as it means you will have a guaranteed income for life and are not in danger of outliving your money.Â
Which option is best for you will largely depend on your unique circumstances. A financial adviser can offer more guidance when it comes to drawing funds from your retirement account.
When can I access my IRA account?
Generally speaking, you can make withdrawals at the age of 59 without the IRA penalizing you or your fund. In some cases, they may grant permission for you to make withdrawals at 55 and you must make minimum withdrawals upon reaching the age of 70.
What happens to my IRA when I die?
Should the owner of an IRA account die before the account is fully depleted, the IRA will pass to whomever the owner named as the beneficiary of the account.
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