June product spotlight

Charles Kelton

by , Product copywriter

at PensionBee

04 July 2024 /  

June product spotlight

It’s our mission to build pension confidence and create a world where everyone can enjoy a happy retirement. This month, we’ve made significant updates to our plan information to help you better understand your pension.

Your Annual Statement is ready!

Have you seen your annual statement for the 2023/24 tax year? You can find it by logging into your account otherwise known as your “BeeHive”, clicking on ‘Account’ and then clicking on the ‘Resources’ tab. Your Annual Statement includes your current pension savings, projected retirement income and your annual management fee. You can read, download and save your statement straight from your BeeHive.

If you have any questions, please reach out to your BeeKeeper.

Keep reading to find out about this month’s product updates.

Plan performance chart and table

We’ve introduced two new plan performance graphs in our customers’ BeeHives’. These changes are designed to give you a better understanding of how our plans work. This way you can have greater confidence the plan you’re invested in works best for you.

These changes are currently only available by logging in to your BeeHive through our website, but we’re working to bring them into our app soon.

How pension investments work

Both the performance chart and table show how the fund your pension is invested in has grown over time. However, each provides a different way to understand that performance. Before explaining what the chart shows, let’s take a moment to look at how investing your money works.

Like all pensions, when you invest in one of our plans your money’s used to buy units in it. If you own 100 units in your plan and each unit is worth £1.25, then your pension balance is £125. However, the unit price changes daily and reflects your plan’s performance and value on that day.

The unit price itself is made up of the value of the underlying company shares in your plan. For example, if your plan invests in an index which includes Apple and the value of Apple falls, this impacts the unit price of the plan. So, if the unit price drops to £1.10 and you have 100 units, your pension balance becomes £110. Unit prices go up and down, and reflect how the market is doing on any given day. Essentially, if the value of the companies in your plan goes up or down, the units your money’s invested in also go up or down and as a result, the value of your pension balance will reflect this.

The fund performance chart

The chart shows what would have happened to £10,000 if you invested that money in one of our plans five years ago. As you interact with the performance chart, you’re seeing how much the initial £10,000 worth of units was worth at that point in time.

fund performance chart July24

The time frame covers five consecutive 12-month periods. These run to the end of the most recent quarter of the year. As time goes on, the chart will update to show performance information to the end of the recent quarter when that data becomes available.

What’s included in the fund performance?

It’s important to note that the fund value shown may include embedded fund fees that are part of the plan’s annual management fee. These are costs paid to the fund manager to invest your money and manage the fund. The fund value excludes any personal contributions or government top ups made to your pension.

How does the chart work?

You can hover your cursor over the chart to see the value of a fund at different points in time over the past five years. As you move across it, the date, fund value and percentage will automatically update. If you’re interested in what the fund’s value was for a specific day or month, you can zoom in and select a point in time. The date above the chart will change to confirm the date you’ve selected.

The fund performance table

This table gives a simple percentage of how much the fund made or lost in a given calendar year. The figures shown are after any fund charges and taxes have already been deducted. This enables you to compare the fund’s performance to any years before or after.

Please note, there’s limited historical data for our Impact Plan or our Fossil Fuel Free Plan due to when these plans launched and the available data.

Benefits of performance information

Increased confidence

We’ve made important information about our funds’ performance more accessible to help you understand the impact on your pension balance.

Past performance isn’t an indicator of future performance. However, seeing how a fund’s performed historically may offer insight into how it could perform in future. Showing performance over a five-year period should be long enough to see how the fund performed throughout different market conditions.

Performance and your plan’s objective

Different pension plans have different investment objectives. It’s important to remember that a plan’s performance shouldn’t simply be compared to other plans but also to its own objectives. For example, the objective of our Preserve Plan is to preserve the value of your pension balance rather than grow it. It may be most suitable for anyone approaching retirement and planning to make substantial withdrawals from their pension in the near future. It aims to preserve your money by investing in assets like bonds which are lower-risk but are also expected to return less compared to assets like equities. This means this plan’s growth at one point in time may have been less than a plan that invests with a different objective. Whilst the Preserve Plan may still see growth, that’s not its main objective.

Fund value vs. pension balance

Where to find the plan performance information

We’re excited to make it easier for customers to see how their pension investments have performed. We hope this will help you decide how to invest your pension in the best way for you. The plan performance chart and table are currently only available when logging into your BeeHive through our website but we’re working on bringing these features to our app in the near future.

Check it out today by logging into your account, clicking ‘Account’ and then clicking on ‘My Plan’.

Let us know what you think

We want to continue improving our plan information where possible to empower our customers to invest in a pension that’s right for them. This year, we’ll be tackling other aspects of our plans information to make it easier to find key details and understand what they mean. If you have any thoughts about our latest changes or ways we can improve the rest of our plan pages, we’d love to hear from you. Let us know what you think by emailing [email protected].

Future product news

Keep your eye out for our next product blog or catch up on previous posts. We’re looking forward to spotlighting more of our handy features and free financial tools plus we’ve got lots of great new updates in the works we’re looking forward to bringing you this year. We’ll let you know what they are, how they can help you save for a happy retirement and how to get started.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

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