PensionBee floating on Stock Market

Interesting to note that Pension Bee have announced they’ll be floating on the London stock market in the coming months.

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I switched two of my old pension pots to them a couple of years ago and I’ve been quite happy with them.

Their fee’s are expensive though if you have a decent sized pot and their investment options are pretty limited although i’ve not studied how they perform.

I moved an old pension with no issues too them.

And if you want to switch to them and get £50 extra to your pension here’s a link: http://refer.pensionbee.com/mQhdj66

I’d honestly caution anyone moving a pension or starting a pension with Pension Bee having now looked at some of their ‘plans’ performance and fee’s.

There are much better options out there that over a decent period will make a huge difference to your fund value.

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What would you recommend?

It will in part depend on your age and how big your pot is, smaller pots are often better with the % charge, larger pots fixed fee amounts.

But as an example as to some funds that out perform, consistently, something like pension bee’s funds;

Baillie Gifford Positive Change; Up 137% in 3 years
Baillie Gifford American; Up 205% in 3 years, 375% in 5 years

Compare those to any of the Pension bee funds. Their tracker fund is 7.72% annualised over 5 years, so a bit under 40%.

Even whole account one’s like Vanguard out perform. Vanguards basic 80% equity lifestyle over 5 years is 65% (and cheaper fee’s/charges)

People get far too hung up on the fee’s, although of course they are important and you should know what you are paying and what else is available. No point investing in one with a 0.7% fee if the average annual return is 5% and ignoring the one’s that charge 1% but give double digit return.

Companies like Pension Bee have a place, but in my view in the long term provide a very very poor performance.

Had you have put £100k into their tracker plan 5 years ago you’d have 138,600. Vanguard 165,000. BG American 375,000.

Thats a massive difference i’m sure you’d agree (but you wouldn’t want to put everything in the BG fund, you need a spread).

If you are dealing with fairly sizeable amount I’d see a IFA unless you are comfortable with selecting your own funds.

FWIW I use predominantly ii. But I have a sizeable pot.

PensionBee offer several funds to choose from. It looks like you’re comparing PensionBee’s low risk fund with a lot higher risk funds from other platforms.

Okay bois who should I pension with, I’m 20 :slight_smile: also when the heck can I withdraw and what happens if I die before then

But thats the point, PensionBee have a very restricted set of funds, none of which perform particularly well. Even against the benchmarks.

It’s a nice platform, but if you are more worried about that than the size of your potential fund then go ahead, if you are more concerned with the performance of your money and therefore what you will have in retirement there are an awful lot of better options out there and not many that are worse.