Pension plan FAQs

Question 1

Which PensionBee pension plan is right for me?

Accepted Answer

PensionBee offers six plans (Global Leaders, 4Plus, Tracker, Climate, Shariah and Preserve), with a range of risk levels and goals. Most customers stay in their age-based default plan, either the Global Leaders Plan or 4Plus Plan. Customers under 50 are automatically put into the Global Leaders Plan, with those 50 or older put into the 4Plus Plan. You can switch your plan at any time.
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PensionBee doesn’t give pension advice or offer personal recommendations to customers, but we can explain our products to you. You may want to consider speaking to an Independent Financial Adviser (IFA) if you're unsure.

Question 2

What is PensionBee's default pension plan?

Accepted Answer

PensionBee invests new customers in one of two default plans based on their age. Customers under 50 go into the Global Leaders Plan. It invests in approximately 1,000 of the world's largest public companies. Those over 50 go into the 4Plus Plan, which aims to grow your pension by 4% a year above the Bank of England base rate over a minimum of five years. However, customers can switch to a different plan other than their default at any time.

Question 3

What's the difference between the Global Leaders Plan and the Tracker Plan?

Accepted Answer

The Global Leaders Plan is a higher-risk plan, managed by BlackRock. It invests in 100% equity (company stocks) of approximately 1,000 of the world's largest public companies, includes a 0.70% annual management fee and is PensionBee's default plan for people under 50. The Tracker Plan is a medium-risk plan, managed by State Street, that invests in global equities and bonds. Its investments follow the world’s markets as they move. It's managed by State Street and has an annual management fee of 0.50%.

Question 4

What's the lowest-risk PensionBee plan?

Accepted Answer

The Preserve Plan is PensionBee's lower-risk option. It makes short-term investments in cash and cash equivalents to reduce risk and help preserve your savings, though its value can still fall.

Question 5

Does PensionBee offer an ethical or sustainable pension?

Accepted Answer

Yes, the Climate Plan, managed by State Street, tracks a Paris-Aligned index that excludes direct fossil fuel producers. It’s weighted towards companies reducing carbon emissions over time.

Question 6

Does PensionBee offer a Shariah-compliant pension?

Accepted Answer

Yes, the Shariah Plan invests only in Shariah-compliant companies. Its investments are approved by an independent Shariah committee.

Question 7

Can I invest in more than one PensionBee plan?

Accepted Answer

No, PensionBee customers can only invest in one plan at a time. PensionBee doesn't offer plan splitting. You can switch to a different plan whenever you like.

Question 8

How much do PensionBee plans cost?

Accepted Answer

PensionBee charges an annual fee of 0.50% to 0.95%, depending on the plan. The fee is halved on the portion of your savings above £100,000. For example, £250,000 in the Global Leaders Plan costs 0.70% on the first £100,000 and 0.35% on the remaining £150,000. Transferring old pensions is free. Use our Fee Calculator to see how your fee decreases as your savings grow.

Question 9

Which PensionBee plan has the lowest fee?

Accepted Answer

The Tracker Plan and the Preserve Plan have the lowest annual fees (0.50%). The Global Leaders Plan costs 0.70%, Climate Plan 0.75%, 4Plus Plan 0.85% and Shariah Plan 0.95%. On every plan, the fee is halved on the portion of your savings over £100,000.

Question 10

Who manages PensionBee's pension plans?

Accepted Answer

PensionBee's plans are managed by some of the world's largest money managers. The Global Leaders Plan is managed by BlackRock. The 4Plus, Tracker, Climate and Preserve plans are managed by State Street. The Shariah Plan is managed by HSBC and State Street.

Question 11

Why does PensionBee use BlackRock, State Street and HSBC?

Accepted Answer

PensionBee partners with some of the world's biggest money managers so your pension is invested by experienced professionals, whichever plan you choose. Your plan's assets are held safely by global custodians and are structured as long-term insurance contracts with 100% FSCS protection.

Question 12

Can I switch PensionBee plans?

Accepted Answer

Yes, you can switch plans at any time in your online account, known as your ‘BeeHive’, and there's no limit to the number of switches you can make. PensionBee doesn't charge a fee to switch, but small transaction costs may apply. These are standard across the industry, but PensionBee doesn't make any money from them.

Question 13

How long does switching plans take?

Accepted Answer

A plan switch can take up to 12 working days. This is because your money’s sold into cash and reinvested, so it's out of the market for a short time. Markets can still move during the switch period, so your pension balance may be more or less once it completes.

Question 14

Is my money safe in a PensionBee plan?

Accepted Answer

PensionBee is authorised and regulated by the Financial Conduct Authority (FCA). Your plan's holdings are structured as long-term insurance contracts, so if a money manager fails and the Financial Services Compensation Scheme (FSCS) accepts the claim, it covers 100% of your pension with no upper limit. As with any investment, the value of your pension can go down as well as up.

Question 15

Is PensionBee a private pension?

Accepted Answer

Yes, PensionBee offers a defined contribution personal pension, also known as a private pension. It's separate from the State Pension and any workplace pension, and its value depends on how much you pay in and how your investments perform. PensionBee isn't a Self-Invested Personal Pension (SIPP) where you choose which individual investments to make. Instead, you pick from a range of curated plans.

Question 16

Can I transfer old pensions into a PensionBee plan?

Accepted Answer

Yes, you can either transfer your old pensions into one easy-to-manage online plan, or start a new self-employed pension with us by setting up a contribution (of any size) if you’ve never saved towards your retirement before.

Question 17

Can I choose a PensionBee plan if I'm self-employed?

Accepted Answer

Yes, you can either transfer your old pensions into one easy-to-manage online plan, or start a new self-employed pension with us by setting up a contribution (of any size) if you’ve never saved towards your retirement before.

Question 18

How much can I pay into my PensionBee plan?

Accepted Answer

There's no minimum amount to pay into your pension. You can contribute as much or as little as you like, as often as you like. Most UK taxpayers usually get tax relief on their personal pension contributions, which means that the government effectively adds money to your pension pot. Basic rate taxpayers usually get a 25% tax top up; HMRC adds £25 for every £100 you pay into your pension. Higher and additional rate taxpayers can claim a further 25% and 31% respectively through their Self-Assessment tax returns. You can receive pension tax relief on eligible personal contributions that you make, up to £60,000 or 100% of your taxable earnings (whichever is lower). If you earn less than £3,600 a year, you can still pay in up to £2,880 and receive the top up.

Question 19

When can I withdraw from my PensionBee plan?

Accepted Answer

You can start taking money from your PensionBee pension from age 55 (rising to 57 from 2028). PensionBee's own scheme doesn't offer a Protected Pension Age, but if you transfer in a pension that has one of 55 or 56 and PensionBee is correctly informed, it’ll be honoured.