as of 24/02/2021 at 4:30 pm
Once PensionBee has aggregated all your pensions into one single pot (or 'hive'?) then your money will be invested into one of their 8 plan options. These are all funds managed by global giants State Street, BlackRock, HSBC and Legal & General. PensionBee have a number of niche plans, that can tick very specific boxes. Examples of this include a Shariah plan as well as a recently launched fossil fuel free plan, which only invests in companies aligned with the Paris Agreement goals.
The State Street option is a low-cost tracker fund, which invests into major global markets. The BlackRock 'tailored' option is what's known as a target date fund - the idea being that the closer you get to retirement, the more they dial down the riskier assets such as shares, to avoid any sharp falls just before you might want to cash your investments in. And the L&G option is a climate-conscious plan which invests in nearly 2,000 shares from around the world, picking those with low carbon impact and also excluding controversial weapons. You are free to change your plan at any time so don’t get too stressed when initially choosing!
They make costs simple with one all-in fee. Costs range from 0.5% a year to 0.95% a year depending on your investment choice. Your fees are halved for any amount over £100,000 and there are no drawdown costs (unless you transfer and empty your whole pot within 12 months… they don’t encourage that).
For most people, you can only consolidate your pensions within PensionBee, however as of January 2021, self-employed customers can now open a new pension with PensionBee directly.
Small start-up but has some big friends under the bonnet
"Hi, I'm trying to choose an 80/20 low cost tracker fund to transfer my pension to, as I'm currently paying 1% fees to my provider which I want to save on. Does the performance of different tracker funds vary a lot (e.g. between PensionBee, Nutmeg, AJ Bell) and how do I compare their track records? Many thanks, Vivienne"
22/07/2020Read our reply
"Hello there, I’m 41 years old and have recently become a full time freelancer. I want to continue to pay into a pension and am looking at signing up to PensionBee. I’ve got about five different pension pots floating around, which I know either I or they can track down. My main concern is this - I’m always being told that my Civil Service pension is a great thing to have (I was a teacher for a year and then had a different Civil Service pension for about two years) and so will I lose out by transferring it to a new place? By the way, I am loving Boring Money! I’m really keen to start taking control of my finances and it’s proving so helpful... not making me feel like a clown for not understanding all the financial faffery! Thanks!"
08/07/2019Read our reply
"I am a beginner investor and would like to invest in a "socially responsible" Stocks & Shares ISA. I have looked into the Nutmeg and Wealthify funds, having found out about them through the Money Saving Expert website. Is there information about any other such providers on your website? And do you have any advice about how to compare the "socially responsible" criteria on the different funds?"
16/04/2019Read our reply