PensionBee Customer Reviews
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I’m happy with it and…
I’m happy with it and intend to get a good return in the future
Great easy to use pension
Great easy to use pension
Do not really use
Do not really use
Ok
Ok
No comment.
No comment.
It’s great for combining multiple…
It’s great for combining multiple pensions into one pot.
Very good advice
Very good advice
Fantastic service, great customer service…
Fantastic service, great customer service and addresses a massive pain point in the pensions industry. 5 stars.
Easy to use, efficient and…
Easy to use, efficient and friendly staff, great app
Amazing all round for pensions
Amazing all round for pensions
Very good
Very good
Innovative and agile, great educational…
Innovative and agile, great educational tools, and I love their sustainable investment options.
Amazing customer service, fees and…
Amazing customer service, fees and content!
Easy to use and clear
Easy to use and clear
simple to use
simple to use
Simple and I’m invested in…
Simple and I’m invested in the Impact Plan.
easy to use, does one…
easy to use, does one thing very well
Exceptional product in its industry
Exceptional product in its industry
great platform for managing your…
great platform for managing your pensions
5/5
PensionBee Expert Review
By Ed Sheldon 31/07/24
In this review, we look at what PensionBee offers in terms of investments, the performance of its plans, its fees and charges, and more. We also look at how it stacks up against competitors in the pension space.
PensionBee Review
Name: PensionBee
Description: PensionBee is an online pensions company that has over 240,000 customers. Founded in 2014 by CEO Romi Savova, its aim is to make pensions simple so that everyone can enjoy a happy retirement. With PensionBee, you can set up a new pension from scratch. Or you can consolidate all your old pension accounts. Once you have an account set up, you can view your balance and make contributions to your account online or via the company’s app.
Is PensionBee a good pension provider?
PensionBee is a great way to track down all your old pensions and combine them into one easy-to-manage online pension in a range of different plans managed by established fund managers like State Street, Blackrock and Legal & General.
Who is PensionBee best suited to?
PensionBee could be well suited to those who:
- Want a hassle-free pension.
- Are looking to consolidate old pensions into one account.
- Are self-employed and looking to start a pension.
Summary
- PensionBee is an online pension provider.
- With PensionBee, you can start a pension from scratch or transfer in old pension accounts.
- In terms of investments, there are currently eight plans to choose from.
- PensionBee’s fee structure is attractive but there are cheaper options out there.
Pros
- The user-friendly platform – With PensionBee, it’s very easy to set up and manage a pension.
- Excellent customer service – When you sign up to PensionBee you are given your very own UK-based account manager, or ‘BeeKeeper’, who’ll look after you.
- The tiered fee structure – Fees are reduced if your pension is worth over £100,000.
Cons
- Limited investment strategies – The range of plans on PensionBee is quite narrow.
- Limited investment options – With PensionBee, you can’t invest in regular investment funds, exchange-traded funds (ETFs), investment trusts, or individual stocks.
- Lower returns – Returns may not be as high as those generated by competitors.
-
Pricing
(4)
-
Market Access
(3.5)
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Online Platform
(5)
-
Customer Service
(4.5)
-
Research & Analysis
(4)
Overall
4.2PensionBee CEO Interview
Romi Savova, PensionBee CEO on narrowing the pension advice gap.
What investments does PensionBee offer?
PensionBee offers customers a range of investment plans. These are managed by large-scale global money managers such as BlackRock, HSBC, and Legal & General and have different risk levels.
The plans on offer include:
- Tracker – This invests your money in a mix of global shares and bonds.
- Tailored – This is essentially a ‘target-date fund’ that invests your money differently as you go through life, moving your money into safer investments as you get older.
- Fossil Fuel Free – This is a sustainable investing plan.
- Impact – This plan invests in companies addressing the world’s greatest social and environment needs.
- 4Plus – The aim of this plan is to achieve long-term growth of 4% per year above the cash rate.
- Shariah – With this plan, your money is invested in Shariah-compliant companies.
- Preserve – This is a lower-risk plan that makes short-term investments in creditworthy companies.
- Pre-annuity – This invests your money in bonds to provide you with returns that broadly correspond to the cost of purchasing an annuity.
Plan | Fee | Risk level | Managed by |
Tracker | 0.50% | Medium | State Street Global Advisors |
Tailored | 0.70% | Varies | BlackRock |
Fossil Fuel Free | 0.75% | Higher | Legal & General |
Impact | 0.95% | Higher | BlackRock |
4Plus | 0.95% | Medium | State Street Global Advisors |
Shariah | 0.95% | Higher | HSBC |
Preserve | 0.50% | Lower | State Street Global Advisors |
Pre-annuity | 0.70% | Higher | State Street Global Advisors |
Looking at this range of plans, PensionBee’s offering is a little limited compared to those of rivals. For example, competitors such as Moneybox and Nutmeg offer far more investment options.
How have PensionBee’s plans performed?
The table below shows the 5-year performance of PensionBee’s Tracker plan (which is an 80% stocks and 20% bonds portfolio) along with performance figures from a few other similar types of products. The returns from the Tracker plan are solid, however, one could have potentially generated higher returns with other providers.
Fund | 2019 | 2020 | 2021 | 2022 | 2023 | 5-year return |
PensionBee Tracker | 17.0% | 2.4% | 15.8% | -15.3% | 16.9% | 37% |
Vanguard LifeStrategy 80% Equity fund | 18.1% | 7.7% | 14.4% | -8.8% | 11.8% | 48% |
Nutmeg risk level 8 | 17.0% | 6.4% | 15.4% | -11.0% | 11.3% | 42% |
Wealthify Adventurous | 17.1% | 5.1% | 12.8% | -9.1 | 11.3% | 40% |
What are PensionBee’s charges and fees?
With PensionBee, you pay one simple annual fee of between 0.50% and 0.95% per year depending on the plan you choose. This fee is calculated daily and automatically deducted from your account each month (or when you switch or transfer your plan).
Note that if your pension is larger than £100,000, the company will halve the fee on the portion of your savings over this amount. So, for example, if you have £120,000 in the Tracker plan, the fee for £20,000 of the £120,000 will be reduced from 0.50% to 0.25%.
Now, some of PensionBee’s fees are pretty competitive (i.e. 0.50% for the Tracker plan). But they can be beaten. With Vanguard, for example, it’s possible to pay around 0.25% annually.
What are the benefits of consolidating your pensions with PensionBee?
There are several benefits of consolidating your old pensions into one account. For a start, bringing together your different accounts makes it much easier to manage your money. When your retirement savings are all in one place, monitoring your investments takes less time and it’s much easier to work out if you’re on track for retirement.
Combining pensions also allows for a better understanding of your asset allocation. If your money is spread out over many different pension providers, it can be difficult to keep track of your asset mix and know how much risk you’re taking on.
Additionally, consolidating your pensions can enable you to lower your costs. Today, many pension providers, including PensionBee, have tiered fee structures where annual charges are lower for higher account balances.
It’s worth pointing out that a pension consolidation is not always the best move. If you are a member of a defined benefit pension scheme, or you have a pension that comes with valuable benefits such as guaranteed annuity rates, you may be better off sticking with your current provider.
Can you withdraw money from PensionBee?
With PensionBee, you have to follow standard UK pension rules. So, you cannot withdraw your money until age 55 (57 from 2028). When you reach the age of 55, you can either take your pension flexibly online through PensionBee drawdown, or you can buy a pension annuity through Legal & General. Note that at 55, you can only withdraw 25% of your pension tax-free.
How to open an account with PensionBee
Opening an account with PensionBee is a straightforward process. You can sign up either online or via the app. When signing up, you’ll need to provide some basic details such as your legal name, your current address, your date of birth, and your National Insurance number. If you wish to transfer old pensions to PensionBee, simply tell PensionBee the names of your old pension providers and some basic information and they will do the rest.
PensionBee Competitors
If you’re looking for a pension or SIPP provider, some other options include:
- Hargreaves Lansdown – With a Hargreaves Lansdown SIPP, you have access to thousands of different investments.
- Moneybox – Moneybox offers access to investment funds, ETFs, and US stocks.
- Nutmeg – Nutmeg also offers a range of ready-made portfolios and has ESG options.
- Vanguard – Vanguard offers extremely low fees and a wide range of funds.
PensionBee FAQs
On average, pension transfers take around 12 weeks to complete.
PensionBee’s default plan is the Tailored plan. This is a ‘target-date fund’ that moves your money into safer investments as you get older.
No. With PensionBee you can’t invest in stocks or ETFs. You can only invest in its plans.
Yes. PensionBee offers several sustainable investing plans.
PensionBee is regulated by the UK’s Financial Conduct Authority (FCA). So, you should consider it to be safe.
Yes. If you’re eligible for tax relief, it will be applied to your account (only 20% tax relief is applied automatically).
No. It’s free to set up an account with PensionBee and also free to combine your old pensions.
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A recurring theme when I talk to CEOs and Fund Managers about long-term investing is that to make money most of the time you should do absolutely nothing. That, however, is in stark contrast to the fact that you must do something absolutely immediately, as soon as possible, this instant. Both are true, you should
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
