In this article, I review my experience of joining Pension Bee in 2023. I cover the pros and cons of joining Pension Bee, the Pension Bee fees, how Pension Bee works, plus a final review verdict of Pension Bee with a £100 refer a friend bonus to your pension account once you transfer your pensions to Pension. *Disclosure: If you complete a Pension transfer via Pension Bee, we both get £100 added to our pensions. This article is a review and not financial advice of any kind.
Table of Contents
What is Pension Bee?
PensionBee is a leading online pension provider listed on the stock exchange, helping you transfer your old pensions into one new plan, that you can then manage online. PensionBee lets you manage your pension like you manage your bank account: check your live balance, see your projected retirement income, and set up contributions. You can combine all your old workplace pensions and SIPPs into one new online plan through PensionBee. If you have worked for several companies with different pensions, it can be very useful to have them in one single place, so you know what you have in total. N.B If you join via these links, I will get a referral bonus.
What is the Pension Bee Calculator?
A pension calculator is a tool that estimates your projected retirement income based on the duration of years you have left until retirement and your long terms saving goals. With PensionBee’s pension calculator, you can set a retirement goal and see if your savings seems to be on track.
Is Pension Bee Free?
Using PensionBee to find your pensions is free. The only fee you pay once your pension is invested is the annual management fee. This ranges from 0.50% – 0.95% fee, depending on which plan you are in. See the below section for more details. Join PensionBee here.
What are the Pension Bee Fees?
An annual pension fee in the market of 1–2% should be considered expensive. PensionBee fees depend on the type of account you choose. PensionBee’s annual management fees range between 0.50% and 0.95%. Personally, my one was a 0.7% annual fee, as I had only a few thousand pounds in pension amount. The fees are 0.70% for the first £100,000 and 0.35% for the remaining balance above £100,000.
Is Pension Bee safe?
Pension Bee is authorised under the Financial Conduct Authority to provide pension services in the UK. Your money is also protected under the Financial Services Compensation Scheme (FSCS), so if something went wrong with Pension Bee/Your Pension Provider you would get 100% of your pension back, so you are safe from a legal point. However, you do put your money at risk every time you invest in the markets, as pensions can grow and decline over time. Generally, they trend higher over time.
How does Pension Bee work?
Pension Bee starts by transferring your old pensions and investing them into a brand new online plan.
Step 1: Sign up in minutes, just apply basic details, National Insurance number,
Step 2: Tell Pension Bee about your existing pensions
Step 3: 12-week switching process – their Beekeepers will provide regular updates every step of the way
What is the Pension Bee Calculator?
The Pension Bee calculator shows how much income your pension could generate in your retirement. It is quite useful finding out how long your pension could last and see how contributions might impact your savings.
Pension Bee referral code
Currently, there is a £100 referral bonus if you join up.
What’s good about Pension Bee?
*Better control over your overall pension pot – All your pensions from previous jobs are in one place, which is easier.
*Live pricing information
*It’s very quick to sign up – literally a few minutes
*Simple but clear range of investment plans
*A strong summary of your pension pots, but with the option to get further details too
*The customer service is good with a live chat feature and a reactive customer service team
*There are useful videos to watch and the website is made easy to follow.
*£100 referral code
What is not so good about PensionBee?
*Their annual costs are not the lowest in the market (between 0.50% and 0.95%). For people with more than 20K in savings, there are cheaper funds out there and you could self-manage your own pension funds (through a SIPP) via many trading platforms
*There is a bit of administration needed to get set up with Pension Bee, e.g. phoning up your old pension provider and verifying change of address details etc.
*Like any pension provider, your pension can go up and down in performance (yet you will still pay an annual management fee).
*Each plan has only set funds, which may disappoint some people who want to invest in shares and bonds.
*No financial advice was given by PensionBee.
Alternatives to PensionBee include AJ Bell lower cost self-invested personal pension (SIPP) which gives you more control over how your pension pot is invested. The right option for you will depend on a number of factors, including your appetite for risk, the time you are willing to keep funds locked away. Soon there is likely to be a Government planned pension dashboard, which will show where your previous pensions are, but won’t consolidate them, which could push more people to review SIPP options on the likes of AJ Bell, Bestinvest and Hargreaves Lansdowne.
PensionBee Pension Types
A range of pension plans, for a range of savings needs. There are key plans like tracker, tailored and fossil fuel fee. However, there are other plans such as Impact, 4 plus, Shariah, Preserve & Pre Annuity Funds.
PensionBee tracker plan
State Street Global Advisers manage this PensionBee pension. It invests your money in global shares, bonds, and cash. This tracker fund follows the markets as they move. When it comes to the risk level, this plan is classed as medium and its fee is 0.50% annually.
PensionBee tailored plan
Managed by BlackRock, this is a plan that reacts according to your age. The further away from retirement you are, the more risks you can afford to take purely because there is time for things to correct themselves should they go wrong. As you get older, this pension fund will become more conservative with the risks being taken. This way of managing a pension is usually referred to as life styling. When it comes to the risk level, this plan is classed as higher and its fee is 0.70% annually.
PensionBee fossil fuel-free plan
Managed by Legal and General, this plan is a socially responsible one. It won’t invest funds into companies where there are reserves of coal, oil, gas or tobacco products. For anyone that wants their investment to make a difference by investing in a socially responsible plan that excludes violators of the UN Global Compact, this could be a good fund. When it comes to the risk level, this plan is classed as higher and its fee is 0.75% annually.
PensionBee Reviews – Trust Pilot
PensionBee Reviews are currently on 4.6/5. Most customers highlight the easy-to-use, simple-to-transfer service of Pension Bee. The negative comments are mainly from customers who have found it challenging to communicate with their customer services. Join here and occasionally there are signing-up new customer bonuses.
Overall rating of PensionBee
PensionBee Reviews are currently on 4.6/5. Most customers highlight the easy-to-use, simple-to-transfer service of Pension Bee. The negative comments are mainly from customers who have found it challenging to communicate with their customer services. Join here and get a £100 bonus into your pension.
Overall, PensionBee is an innovative pension provider, which offers a top service where you combine your old pension into a pot, making it easier to know your current and projected pension pot. Despite, it not being the cheapest service out there and a bit of admin time is needed to ensure the transition. The control over your pension pot, the strong summary of your pension pots. GreatDealsMadeEasy gives it 7.5/10 rating.
*Enjoy a free coffee, free beer and almost a free pizza on me with some free codes to enter.
*Need a new energy supplier? Earn a special £50 joining bonus with ethical energy company Octopus Energy.
*Rent out your spare space (from parking space to a spare room) with Stashbee and get £50 when you host your space.
*Grab a free share (up to the value of £200) when joining FreeTrade.
*Remortgaging or looking at a first-time mortgage? Enjoy a £100 Amazon voucher when using the Trussle mortgage site.
If you have any money-saving or pension tips, please share them with us.