Just like Robin Hood, we’re after a fairer deal for everyone.
At PensionBee, we’re serious about improving the pension industry. Saving should be simple, affordable and stress-fee, not complex, expensive and enough to make you angry.
That’s why we’re not shy to shame the worst offenders. Our first Robin Hood Index called them out on customer service, so this time we’re taking a closer look at fees, transfers and transparency. Take a look to see how your provider compares, and share the data far and wide…
|Pension Provider||Average Annual Management Charge||Highest Annual Management Charge||Highest Exit Fee (£)||Highest Exit Fee (%)||Fee transparency rating (a)||Transfer type (b)||Average Transfer Days|
|Aon Hewitt||N/A (1)||N/A||N/A||N/A||⭐️||Manual||39|
|B&CE (The People’s Pension)||0.50%||0.50%||N/A||N/A||⭐️⭐️⭐️⭐️⭐️||Electronic||c.12|
|Friends Life (c)||0.63%||160.39%||£1,434.10||77.60%||⭐️⭐️||Electronic||c.12|
|Legal & General||0.39%||1.40%||N/A||N/A||⭐️⭐️⭐️⭐️⭐️||Electronic||c.12|
|Now:Pensions (c) (d)||10.40%||4909.39%||N/A||N/A||⭐️⭐️⭐️⭐️||Manual||45|
|Towers Watson||N/A (1)||N/A||N/A||N/A||⭐️||Manual||51|
|Totals||0.95%||4909.39%||£10,771.78||77.60%||⭐️⭐️⭐️ (3.2)||Manual: c.43 days Electronic: c.12 days|
Is your provider performing badly?
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The data in the table is based on analysis between 2016 and 2017. Remember, as with all pensions your capital is at risk.
(a) Fee transparency rating: 1= Not available unless specifically requested over post or extremely complicated to calculate from available info. 2= Leaves a lot to be desired. Requires a calculator, a Google search and occasionally a phone call. 3= Spotty. Requires a calculator. 4= Generally good. Enough information given to calculate fees from the paperwork fast. 5= Very good. Fees visible on the paperwork.
(b) Electronic: using de facto industry platform Origo, Manual: paper transfer forms.
(c) The charge is calculated as a proportion of the pension pot and where the charge exceeds the pension pot – i.e. is over 100% – it is expected to result in an extinguishment (account closure) of the pot.
(d) All data for Now:Pensions is based on deferred members (i.e. those not paying in contributions) earning over £18,000. Active members are subject to different fees and charges. Fees as a % of the pension will be lower as the pension pot grows through contributions.