The following is a transcript of a bonus episode of The Pension Confident Podcast - Understanding market volatility. You can listen to this bonus episode or scroll on to read the conversation.

PHILIPPA: Hi, welcome back. For this special bonus episode, we’re going to be talking more about market volatility. Earlier this month, we discussed some of the key need-to-knows for savers worried about big swings in the value of their investments and indeed their pension balances. That was episode 39 of the podcast and if you missed it you can listen to it on our feed right now.

But market volatility is a big topic and it’s well worth knowing more about why it happens and how you might want to respond to it because it’s likely we’ll be seeing more of it over the next few months. You’ve raised lots more questions since that episode went out so today we’re back with more helpful explainers from our expert guests.

Here’s the usual disclaimer before we start, please remember that anything discussed on this podcast shouldn’t be regarded as financial advice or legal advice. When investing, your capital is at risk. And for this episode, in particular, it’s really important to remember that past performance isn’t an indicator of future performance.

Now as you probably already know, the market volatility we’ve seen this year has meant pension balances have been fluctuating. But why exactly does that happen? Here’s podcast regular Faith Archer in episode 32. She’s a Financial Journalist and Founder of Much More With Less.

FAITH: A pension balance is just the amount of money that you have in your pension pot. So, think about it like you might check your current account balance, your savings balance.

PHILIPPA: If you’re looking at the number and you’re thinking, “is that a good number? Is that a bad number? Is that what it should be? It seems lower than last year”. What’s the process? How should you address that number? Because as you say, it’s a snapshot, isn’t it? It’s a snapshot of what your pension is worth right now.

FAITH: There’s two things I’d say. One, don’t necessarily panic if it’s lower than a previous number. Don’t worry so much. One of the things about pensions is that they’re investments. It’s not like money in a bank account that the only reason it changes if you take money out or interest is added. With a pension, it’s invested in the stock market, in shares in companies or loans to either companies or governments. The reason for that is you’re taking a bit of risk in hope of higher returns. Pensions, typically, they’re investments over a very long time, multiple decades. You’ve got time to ride out the peaks and troughs, the ups and downs, of the stock market. But what that means is your pension balance isn’t going to be the same day-to-day. There may be some years when it goes down, there may be some years when it goes up. But historically, over the long term, the stock market does outperform just having your money in cash.

PHILIPPA: Now let’s hear from Alex Langley in the same episode, number 32. He’s PensionBee‘s Head of Customer Success. Alex and his team speak to customers every day who get in touch because they’re watching their balances fluctuate and, understandably, they’re feeling unsettled.

ALEX: It can be quite difficult for customers who’re with a company like PensionBee, where they can see their balance every day. I mean, it might be a certain number, and then it goes down, and then it goes back up. Some customers aren’t used to seeing that every day. Some customers will only have had an annual statement once a year with their previous provider.

PHILIPPA: Do you get anxious calls from customers saying, “what’s happening with my pension balance? Why is it so much lower?”

ALEX: Yes, definitely.

PHILIPPA: What do you say to them?

ALEX: It’s really about explaining the context and [helping] them understand that it’s normal for pension balances to go up and down, that historically markets recover. In the biggest financial crisis we’ve had in the past, markets have always bounced back stronger. It’s just really explaining that to customers and getting them to understand that maybe it’s not best to look at the balance every day.

PHILIPPA: As Alex mentioned, we’ve seen this sort of thing before, so let’s go back to Faith and hear her talking about how she’s dealt with volatility in the past.

FAITH: I think it partly depends how far you’ve got to go until retirement.

PHILIPPA: Yes.

FAITH: Whether you’re really engaged with the fact you’re going to need the money relatively soon. Certainly, I’m certainly not suggesting checking it every day. Once a year, definitely a good plan. I probably check mine once every few months. I know certainly when, for example, COVID hit and the markets all plunged, I was almost sticking my fingers in my ears and shutting my eyes and going, “la, la, la”. I didn’t want to look. I knew it’d be scary.

PHILIPPA: You knew it’d be bad.

FAITH: It would’ve dropped. It’d be scary. But I also was pretty confident it wasn’t the end of civilisation as we know it, and things were likely to come up. So, I just stepped away, didn’t look for about four months. And I think that was much better for me.

PHILIPPA: And that feels like a good time to talk about exactly how our pensions are invested and how they may be diversified to try to insulate investors against those market swings we’ve been hearing about. Here to tell us a bit more about that is Martin Parzonka, he’s PensionBee‘s VP Product.

MARTIN: Most plans that you’d invest into in a pension are diversified

PHILIPPA: When you say diversified, you mean?

MARTIN: Having money in the US markets, having money in UK markets, in emerging markets, Asian countries, African countries. It’s good to have that spread.

PHILIPPA: Pension funds don’t just invest in stocks and shares, do they?

MARTIN: That’s right. It’ll also be bonds. There’ll be some money held in cash as well. Commodities, property, pretty much anything you can put money into.

PHILIPPA: Commodities being things you make stuff out of, copper, gold, that sort of thing?

MARTIN: Oil.

PHILIPPA: Yeah, all that sort of thing. They have this very diverse, to use your word, range of investments. That essentially is all about insulating you from risk, isn’t it?

MARTIN: That’s right.

PHILIPPA: If something goes badly, hopefully something else is going well.

MARTIN: Yeah. It’s important also to have a look at the type of investment plan you’re putting your money into. So not all plans are like that. Some will just be 100% company stocks, and that’s OK, depending on your risk profile. If you want that, you can have that. Some people want it 100% in bonds. That’s OK.

PHILIPPA: Personal choice.

MARTIN: Yeah, personal choice. Exactly.

PHILIPPA: And even plans which are 100% invested in company shares or equities as they’re called - or 100% in bonds - they may be geographically diversified - which means they hold shares in companies or government bonds all around the world. How does that help? Well if one country’s market dips, another might see gains. So that might help to balance things out and that’s how global markets play into our pension balances.

So let’s move on to dealing mentally and emotionally with those fluctuations. Here’s Founder of Money to the Masses Damien Fahy and PensionBee’s own CEO Romi Savova in episode 34 reminding us that volatile times can sometimes be an investment opportunity.

DAMIEN: I think it’s important to have an idea where your money’s invested - if people are invested in tracker [pensions], if the market crashes, what tends to happen is people panic and then they might sell out. And by understanding what’s really going on, what’s driving the ups and downs, it actually encourages people to stay in the long term and invest in the long term because they’re understanding this is the natural flow. It’s a bit like you’re trying to surf and getting wet. You never realise that’s what’s going to happen. You’re going to fall off the board every now and then. What’s going on in your pension is the natural cycle.

PHILIPPA: Yeah. I mean, as you said, that’s the other side of handheld technology knowing where your pension is right now, this minute, isn’t it? I mean, Romi, you must see this. People, if they want to, they can look every day on the app.

ROMI: Some people look more than once a day, even though the balance only updates on a daily basis.

PHILIPPA: Is that a good thing? Because obviously -

ROMI: - I think it’s alright.

PHILIPPA: You do?

ROMI: It’s alright. I do. I truly believe that if you give people enough time to learn these things that, Damien, you’re speaking about, that markets do go up and down, your pension will go up and down. It’s supposed to go down because that’s a good investment opportunity, and it’s supposed to go up as well because that’s what long-term growth looks like.

PHILIPPA: So market volatility is part of life and it isn’t necessarily bad news in the long run. And as Romi went on, in her experience, the longer people invest, the wiser they get about dealing with these ups and downs.

ROMI: We’ve had a couple of market downturns since PensionBee came into the financial landscape. I remember all of them really well.

PHILIPPA: Yeah, I’ll bet.

ROMI: I remember 2018. I remember 2022. 2022 was substantially more severe than 2018. But what we did see is that people who had been with us, customers who had been with us in 2018, had seen a dip, had seen a recovery. They looked at 2022 differently to the customers that had recently joined us because they’d always been kept in the dark by their pension provider before us.

PHILIPPA: Ah ha!

ROMI: So, they hadn’t had the benefit of that transparency over the past 10 years. But now we know that when the next downturn eventually does come - and it’ll come because that’s how markets work - we feel very confident that the customers who’ve been with us, who’ve experienced what a pension is supposed to do, go up and down, we feel very confident that those customers might see it as an investment opportunity.

PHILIPPA: If you’d like to know more about market volatility and how you can better understand your pension investments, head to the PensionBee website - there’s a host of really straightforward blogs, videos and explainers on there.

You can listen back to all the episodes we’ve clipped today in full wherever you get your podcasts. We’re on YouTube and in the PensionBee app too so why not subscribe right now so you never miss an episode? While you’re there, we’d love it if you could give us a rating and a review. It’s really quick to do.

Just a last reminder before we go that anything discussed on the podcast shouldn’t be regarded as financial or legal advice. When investing, your capital is at risk.

We’ll be back next month with a brand new episode exploring money and ADHD and why the two often clash. We’ll be with guests who’ve experienced this for themselves and as always, we’ll be sharing actionable tips to help you stay on top of your personal finances, whatever challenges you may be having. Thanks for listening.

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.

Do you ever feel the ‘Sunday scaries‘? Is the thought of another week at your job making you feel weary? You’re not alone. Since the COVID-19 pandemic, about four million Brits have already taken that leap and changed careers. But how do you make that change and come out on top?

Here are six simple steps to help you along the way.

1. Reflect on your ‘why?’

Founder of the Talented Ladies Club, Hannah Martin says: “I often get people to think back to when you were a child. In one of my workshops, a woman really hated her job. She worked in a basement for a micromanaging boss. When she did this exercise, it was all climbing trees, building dens. It was all outside and it was all free. She was in a job that was the opposite.”

First, think about why you want to change jobs. What makes you happy? What type of work gives you a sense of purpose? If you often feel unhappy in your current role, this could mean a change is needed. Try to remember what you loved to do as a child. Those interests might give you clues about what you want to do now.

Tip - take some time to journal your thoughts on what brings you joy and satisfaction in your work.

2. Research potential new paths

Next, look into different careers that interest you. Keep an open mind as you explore these options. Use online resources like Glassdoor to learn about various roles and industries. Talk to people who work in those fields to get a real sense of what the job is like. You might even consider volunteering to see if the work suits you before fully committing.

Tip - reach out to professionals and ask about their experiences in roles you’re curious about.

3. Gain hands-on experience

Co-Founder of the Startup School for Seniors, Suzanne Noble says: “The best time for you to [make a career switch] is when you’re still in work. A lot of people decide to make that move as a result of volunteering. The win there is about confidence building and feeling capable about making that career shift.”

If you can, try to get some hands-on experience in your new field. This could be through part-time work or even volunteering. This experience can boost your confidence and help you learn more about the industry. Remember, the skills you’ve built in your previous jobs are often useful in new careers.

Tip - look for local volunteer opportunities that align with your interests to gain relevant experience.

4. Make a financial plan

Changing jobs can affect your finances, so it’s important to plan ahead. Start by reviewing your current financial situation and consider how your job change might impact your pension contributions. Create a simple budget to see your essential expenses. Look for ways to keep earning money while you transition, like working part-time or finding grants for training.

Tip - use budgeting apps to help you track your expenses and plan for any changes in income.

5. Acquire necessary skills

Senior Software Engineer at PensionBee, Anindya Bhattacharyya says: “No employer was going to hire a Junior Programmer with zero experience, who was in his 40s, who’d been a newspaper Journalist for the past 20 years. I had to go and do the boot camp and that’s what taught me the career skills. That’s what got me the first job.”

As you prepare for your new job, consider the skills you may need to acquire. Take the time to identify which skills are essential for the roles you’re interested in. Research training options, such as online courses or local workshops, and don’t hesitate to seek help or advice from others. While learning new skills can feel challenging, remember that it’s a valuable investment in your future.

Tip - explore platforms like Coursera or Udemy for affordable online courses that can help you acquire new skills.

6. Build your support system

Changing careers can be tough, so having support makes a big difference. Surround yourself with friends and family who encourage you. Reach out to your network and let them know you’re looking for new opportunities. Take small steps, such as updating your LinkedIn profile or CV, and consider joining new training sessions.

Tip - join online communities or local groups related to your desired field for additional support and networking.

Summary

Making a career change is a big decision. With some reflection, research and a solid plan - you can find a job that fits your values and goals better. Here are the main points to remember:

• Reflect on your ‘why?’ - understand what truly motivates you.
• Research potential new paths - explore different career options and consider which of your existing skills could be transferred.
• Gain hands-on experience - look for opportunities to learn in real-world settings.
• Make a financial plan - budget for your career transition so you can maintain your standard of living.
• Acquire necessary skills - invest in learning skills relevant to your new career.
• Build your support system - surround yourself with encouraging people.

Listen to episode 38 of The Pension Confident Podcast as our expert guests share how to make a career switch at any age. You can also read the full transcript or watch the episode on YouTube.

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.

This page contains information for Tailored Plan customers born in or before 1959. It accompanies an email related to their future switch to the 4Plus Plan in August 2025.

Each vintage of the Tailored Plan will be notified of their switch timeline separately by email, please see our FAQ below on our staged rollout dates. If you have any switch-related questions please contact us on engagement@pensionbee.com.

Why are you updating the Tailored Plan?

As part of our mission to build pension confidence, we regularly review our plans to ensure that their objectives continue to align with changing customer needs and expectations, as well as the regulatory landscape.

Over the past few years we’ve listened to what our customers have said about the Tailored Plan, focusing on the experiences of different age groups. Customers told us they found the fixed de-risking approach to the Tailored Plan to be too rigid. Specifically, younger customers didn’t want to be moved away from higher-risk investments from the age of 35. Some older customers told us that a fixed retirement age of 65 wasn’t right for their situation either. Many of these customers still wanted growth opportunities in their later years, but with some element of protection to market volatility.

A key part of our decision making was that older customers said they’d prefer a plan that better responds to the unexpected events occurring in the financial system. For example, proactively moving money to lower-risk assets in times of great market volatility.

Years of customer feedback has offered us valuable insights into how they use and feel about the Tailored Plan. As a direct response to this feedback, we’ve decided to offer different default plans for our younger (under age 50) and older (age 50 and above) customers. Our new offering of two default plans has been designed to better suit customers expectations and reflect their views in a changing world.

Why did you select the 4Plus Plan as an alternative for customers over 50?

We’ve offered the 4Plus Plan since 2018, as one of our Financial Conduct Authority (FCA) Investment Pathways. We’ve observed the way this plan has responded to different market cycles and events since 2018, and believe that its actively managed approach brings additional certainty for those nearing or in their retirement phase.

The plan is managed by State Street Global Advisors, one of the largest money managers in the world. At its core, the 4Plus Plan aims to strike a balance between growth and stability for savers over 50 years old.

This balance is achieved through a target return objective of 4% above cash over the long term, which should be considered as a period of five years or more. This long-term perspective allows for more predictable drawdown planning.

A key feature of the 4Plus Plan is its responsive asset allocation strategy, designed with the aim of protecting your savings during turbulent times.The team of money managers behind the plan meet weekly to make necessary and tactical adjustments based on changing market conditions.

The long-term asset allocation is reviewed annually to ensure it remains relevant, but strategic adjustments are also made on a monthly basis. This dynamic management, combined with the target return objective, provides a powerful tool for navigating market volatility.

What are my options if I don’t want to be switched to the 4Plus Plan?

If you think the 4Plus Plan isn’t the right plan for you, you might want to consider switching to one of our other plans.

For example, our Tracker Plan could be suitable for anyone looking for a cost effective way to invest in 80% global shares and 20% bonds. This plan offers both growth and diversification, following the world’s markets as they move. The annual fee for the Tracker Plan is 0.50%. .

You can switch to any PensionBee plan of your choice. To switch, log into your BeeHive (your online account) and select ‘Account’ and then ‘Switch plans’. With PensionBee you can switch to any new plan of your choice at any time, just note that the switch will take around 12 working days to complete.

If you don’t actively request a plan switch to another plan, you’ll be automatically switched into the 4Plus Plan in August 2025. We’ll confirm the exact date by email in the coming weeks.

How does the 4Plus Plan differ from the Tailored Plan?

There are two key differences between the plans:

• investment strategy; and
• risk management.

The 4Plus Plan is an actively managed plan. This means money managers are adjusting your investments in response to any market movements or volatility. The plan offers an active and dynamic approach to managing your retirement savings. While the Tailored Plan provides a passive strategy based on your target retirement date.

This active component requires more research, analysis, and trading, which leads to a higher management fee. The 4Plus Plan also has a target return objective of 4% above cash over the long term, which should be considered as a period of five years or more.

The Tailored Plan is a target date fund, using a ‘glidepath’ approach, which is passively managed. This means the mix of investments are automatically adjusted over time, becoming more conservative as you approach your target retirement date, which is fixed. This means that the money managers don’t have discretion to change the asset allocation or investment strategy during turbulent market conditions.

How will performance compare for the 4Plus Plan?

Past performance shouldn’t be used as an indicator of future performance. However, we do have historical performance data that can be used to guide our understanding of how the 4Plus Plan performs in times of extreme market volatility. For example, the COVID-19 pandemic or the UK’s 2022 Mini-Budget crisis, which you can see in the table below.

The table below shows how the 4Plus Plan has demonstrated resilience during periods of market turbulence. In almost every market event listed, the declines for the 4Plus were significantly smaller than those experienced by the FTSE World TR benchmark, which is a global stock market index.

This suggests that the 4Plus Plan’s dynamic diversification strategy has been effective in softening the impact of various key market events. Including geopolitical conflicts, economic crises, and trade escalations.

4Plus Plan performance during key market events

Source: State Street Global Advisors

Please also see the Morningstar pages for more data on the 4Plus Plan and Tailored Plan Flexi.

How do the fees compare for the 4Plus Plan?

At PensionBee, we only charge one simple annual fee. The 4Plus Plan annual fee is 0.85% (Tailored Plan: 0.70%).

Additionally, if you have more than £100,000 in your pension pot, your fee will be halved on the portion above £100,000.

Please note the 4Plus Plan is actively managed. This means the portfolio is being frequently adjusted by a team of experts, based on changing market conditions. You can read more about the 4Plus Plan’s approach to volatility management.

You can also see our other plan options and their fees on our dedicated ‘Plans’ page.

Can I switch plans earlier if I want to?

Yes, you can switch to another PensionBee plan, including the 4Plus Plan, at any point before mid-July 2025.

You can view all PensionBee Plans on our plans page and you can request a plan switch in your BeeHive. Please be aware that from mid-July we need to prepare for switching by freezing activity in or out of the fund.

What if I want to withdraw funds at this time?

We understand the importance of withdrawals to your financial planning and want to ensure you’re properly informed of these upcoming changes.

Once the switch begins, your BeeHive balance will be frozen until it completes. We estimate this will take around three weeks. This means that you won’t be able to make any withdrawals, and any regular withdrawals you have scheduled won’t be processed during this time.

If you anticipate needing a withdrawal in the period of the fund switch, we recommend that you make any necessary arrangements as soon as possible, before the switch begins. This could mean increasing the size of your withdrawal in the month before the switch.

We’ll send a dedicated email on withdrawals in the coming weeks. We’ll also share more information and the deadline to make any changes to your withdrawal if you have regular withdrawals set up on your account.

Please note that if withdrawal requests are made before 12pm on a working day, we’ll aim to make a trade request on the same day. Requests made after 12pm may be processed the following working day. As long as there are no issues verifying your bank details, it should take around 12 working days for you to receive your money.

Will the value of my pension be impacted?

During the time of the switch, your balance will appear frozen and the graph on the ‘Analytics’ tab in your BeeHive will indicate a straight line. We’re working to minimise out of market exposure during the time of the switch, to enable customers to stay invested in the market during the time of the switch. Please check this page for regular updates.

During the switch your pension will be subject to some market movements, and its value may go down as well as up while the switch is in progress. Any changes in your pension’s value that occur during this period will be reflected in your balance once the switch has been completed.

What are the costs of switching?

We have a commitment from BlackRock and State Street Global Advisors to minimise any costs associated with moving funds. By staging the rollout of the switches, we can also keep a sharp focus moving funds in the most efficient way.

There are always small subscription and redemption costs associated with fund switches. This is both the case if you decide to switch earlier or we move the funds for you. These small costs are an unavoidable feature of the market when moving money between different funds. PensionBee doesn’t profit from the transaction costs associated with switches.

Owing to the dynamic nature of the 4Plus Plan, the underlying investments could vary significantly from today to the trade date. Currently, the estimated cost of this transfer will be around 0.12%, although it could change on the day. This means the estimated cost for a pension pot size of £20,000 would be £24.

What if the stock market is volatile, will you still switch me?

We’re working closely with BlackRock and State Street Global Advisors to optimise the switching process for customers. If any extreme market turbulence occurs in the run up to the fund switch date, we’d review the switch timeline and notify customers of any changes.

Why are you staging the rollout?

We’re switching customers in stages to minimise out of market risk. This is to ensure we can keep the majority of funds invested in the market throughout.

We’ll be moving customers vintage by vintage throughout 2025. Although customers can switch to the 4Plus, Tracker - or any other PensionBee plan - earlier should they wish.

Our staged rollout approach aims to promote good outcomes for all our customers in the Tailored Plan. We’ll be contacting customers in groups in the coming weeks and months to share the timeline for their vintage.

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.

Summer offers a prime opportunity for relaxation and enjoyment. While holidays can provide much-needed respite, they can also lead to extra spending. Last year, the average family of four faced a bill of almost £5,000 for a holiday abroad.

But these outings can often contribute to impulsive financial decisions. What you may not see in the moment is how these summer splurges impact your long-term financial wellbeing.

Striking a balance between short-term enjoyment and long-term financial security is key. Here’s how to enjoy a fulfilling summer while keeping your savings on track.

Set clear financial priorities

Ahead of your holiday, take some time to assess and categorise your finances. Prioritise essential costs such as rent and debt payments. While also setting aside funds for long-term savings and pension contributions. Try to stick to a budgeting rule, like the 50/30/20 framework which allocates:

• 50% to necessities;
• 30% to fun; and
• 20% for savings, investments and retirement.

This way, you leave fun for summer activities without the financial strain that can loom after.

Create a holiday savings pot

Setting up a dedicated holiday fund could help you to avoid a financial headache later in the year. With a separate high-interest savings account or easy access ISA account, you have the opportunity to grow your money while keeping it accessible. You could also consider automating contributions to help you save consistently. This might make it easier to budget for activities and trips which can eat into your household budget.

Budgeting apps are also a great way to track progress and prevent overspending. When using them, try to differentiate between necessary savings and discretionary spending. In other words, those emergency savings should be kept aside for unforeseen situations. For example, if the car breaks down or the washing machine packs in.

By keeping these savings separate, you can see how much is available for holidays and activities without overspending.

Keep pension contributions on track

Summer might feel like a tempting time to deprioritise long-term savings like your pension. But doing so can have consequences. Keeping up with regular contributions means that retirement savings continue to grow in the background. This is thanks to potential investment growth and from the magic of compound interest.

There are other benefits to keeping up with pension contributions, like tax relief. This is one of the main benefits of saving into a pension and is essentially ‘free’ money from the government. Usually basic rate taxpayers get a 25% tax top up. This means HMRC adds £25 for every £100 you pay into your pension making it £125.

Higher and additional rate taxpayers can claim further tax relief through Self-Assessment. Try PensionBee’s Pension Tax Relief Calculator to understand how much you could get on your pension contributions.

If you’re employed and eligible to be enrolled into a workplace scheme, you’ll also benefit from employer contributions. With most workplace pensions, your contributions are taken directly from your salary. Your employer then adds a percentage on top. Under Auto-Enrolment rules:

• the minimum employee contribution is 5% of your ‘qualifying earnings’; and
• the minimum amount your employer has to pay is 3%.

However many employers offer matched pension contributions, so it’s worth reaching out to your HR team to see if they do and what the maximum limit is.

If you opt out or pause your contributions, you’ll also miss out on money from your employer. So before considering cutting back on contributions, try to identify other areas in your budget to adjust.

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Making the most of investments and savings

Investing is a powerful strategy for achieving long-term financial stability. But it can be hard to balance investing while you’re paying for shorter term things like holidays. If you have cash savings, this money can be eroded by the rising costs of everyday goods and services - otherwise known as inflation. Whereas investments have the potential to grow over time and out pace the rate of inflation. So having a balance of the two is key.

Here’s why investing is a smart strategy:

• The power of compound interest - regular investing takes advantage of compound interest. This is where you earn interest on the interest gained. Missing contributions could slow down this momentum.
• Consistency builds wealth - trying to pause and restart investments based on seasonal spending can lead to missed growth opportunities. Staying invested, regardless of short-term priorities, keeps your investments on the right path.
• Balances summer spending with future savings - while summer costs are temporary, financial stability lasts a lifetime. Keeping some money invested can help you enjoy the present without compromising your long-term finances.
• Avoids emotional spending decisions - keeping investments automated to ensure summer spending doesn’t eat into your investments.

Building financial resilience beyond summer

Building mindful spending habits can help you balance short-term spending and long-term financial security. A well thought out budget and regular pension contributions can go a long way to protecting ‘future you’.

If seasonal costs squeeze your budget, consider what other adjustments you can make. For example, to your everyday expenses. As opposed to cutting back on your investments and pension contributions. That way, you can build your financial future while making room for that summer fun you deserve.

Maria is a Freelance Editor and Writer who previously worked as Global Editor at Female Invest. Her writing focuses on gender equality in finance. She’s also written for a variety of other publications including Harper’s Bazaar, The Telegraph, i news, Metro, Glamour and more.

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.

Annuity sales are rocketing. According to the Association of British Insurers (ABI), they jumped 24% to a 10-year high in 2024 as pensioners seek a stable, guaranteed retirement income. That’s a huge turnaround for a product that saw sales plummet by 75% only a decade ago. But what’s behind this renewed interest, and how can you make the most of what annuities offer?

Why are annuities back in demand?

An annuity is a way to turn your pension savings into a regular, guaranteed income for life or for a set period of time. You won’t have to worry about running out of money if you enjoy decades of retirement.

According to Legal and General, the rise in annuity rates at the end of 2024 meant that with a rate of *6.57%, a 65-year-old man in good health could get an annuity paying £6,570 a year in exchange for £100,000. With an annuity rate of 6.57%, if you live past your 80th birthday you’ll start receiving more in income than you paid for the annuity.

You can also get an index-linked annuity so that your income rises in line with inflation, so your purchasing power isn’t eroded over time. PensionBee’s Inflation Calculator can help you see how your pension could be impacted by inflation.

Buying an annuity can also reduce the amount of investment risk your pension is exposed to in retirement as it won’t be affected by any fluctuations in the stock markets.

Why annuities fell out of favour

The introduction of pension freedoms in 2015 meant savers had more options for how to take their pension. One of those was flexi-access drawdown, which lets you access your pension savings whenever you need to, while reinvesting your remaining funds.

At the same time, a long period of low interest rates and poor returns on government bonds (gilts) meant that the rates being paid on annuities were far from attractive. Insurance companies tend to invest in gilts and fixed interest products to secure the returns they need to pay out annuity incomes. So, when gilt yields and interest rates are low the income offered on annuities also drops.

Back in 2019 annuity rates hit an all-time low. A £10,000 annuity would have paid a 65-year-old just £468 a month, according to MoneyFacts - meaning they would’ve had to live to 86 just to break even.

This is the key problem with annuities – you lock in rates at the time of purchase. If rates are low when you buy you could be lumped with a meagre income for the next 30 years. But smart investors can get around that problem.

How to use annuities wisely

A common criticism of annuities is their lack of flexibility. You hand over a large chunk of your pension pot and in return you get a set income for life or a set period of time. But if interest rates rise after your purchase, you could miss out on better deals.

One option is to stagger your annuity purchases throughout your retirement. Instead of buying one large annuity when you retire, consider purchasing smaller annuities at different stages. This approach has three key benefits:

1. Reduces investment risk – moving into annuities gradually over time means you slowly remove your pension from the stock market. You don’t have to sell all your investments at once, leaving some invested with the opportunity to continue growing.
2. Take advantage of rising rates – if interest rates improve you can secure a higher income on an annuity in the future.
3. Your age could boost your income – as you get older, and if your health changes, you may qualify for an enhanced annuity, which offers a higher return.

You’ll also want to consider the type of annuity you’re buying. A single annuity pays an income only while you’re alive. Whereas a joint life annuity provides an income for your partner if you die first.

Working out how much money you need in retirement

The amount you can get from annuity depends on several factors, such as your age when an annuity is purchased, your health and lifestyle, the size of your pot and whether you want an increasing or fixed level of income.

Begin by adding up your essential housing, bills and food costs and subtract your State Pension, if you’re eligible. This is currently around £11,973 per year (2025/26) if you qualify for the full new State Pension. If you aren’t sure what your State Pension entitlement is, you can check your forecast at GOV.UK.

According to The Pension and Lifetime Savings Association (PLSA) the average minimum you need in retirement (as a single person) is £13,400 (2025/26). If you receive the full new State Pension, you’d need an annuity that pays £1,427 annually to cover the rest.

The PLSA’s Retirement Living Standards were developed to help people visualise retirement at three different income levels. They’re well worth looking at to see what you’d need as a single person, or a couple for a minimum, moderate and comfortable standard of living.

If you purchase an annuity to cover the difference between your State Pension entitlement and the minimum standard, you know you have a guaranteed income to cover the essentials. Or, if you can afford to, you could buy a larger annuity to cover a bit more than the essentials.

Using a mix of withdrawal options in retirement

When it comes to taking money from your pension, you don’t have to stick to just one approach. Depending on your plans and what suits your situation, you can mix and match different options.

For example, you might take a lump sum to pay for a holiday or home improvements, while keeping the rest of your pension invested through drawdown. Or you could start with flexible income from pension drawdown early in retirement, then switch to an annuity later on for a guaranteed income - some people also do this the other way around.

You might also consider whether or not to take Pension Commencement Lump Sum (PCLS) before purchasing an annuity. This is where you take 25% of your pension, as tax-free cash, once you’ve reached age 55 (rising to 57 from 2028). This allowance is per person, not per pension scheme. So the maximum you can take across all of your pension pots is £268,275. If you want to purchase an annuity to guarantee a set level of income, you might decide to do this after taking a PCLS.

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Summary

Annuities are enjoying a comeback as a result of a rise in interest rates meaning they can be a valuable part of your retirement income. By staggering your annuity purchases or mixing them with pension drawdown, other savings and your State Pension, you can create a flexible, reliable income. When used wisely, annuities can be a useful part of retirement planning, providing peace of mind and a guaranteed income in your later years.

There are different features to consider and varying types of annuity, and what best fits your needs will depend on your own individual circumstances. If you’re aged 50 and over and want free, impartial guidance, you can book an appointment with Pension Wise. They’ll talk you through your pension options, explain how the tax works and share tips for avoiding scams. You can book an appointment with the government-backed service online via the MoneyHelper website.

Ruth Jackson-Kirby is a Financial Journalist passionate about making money matters clear and accessible. She’s written for The Mail on Sunday, MoneyWeek, The Sun, and Good Housekeeping, helping readers navigate pensions and personal finance with confidence. She believes everyone deserves financial security and is on a mission to cut through jargon and make finance relatable.

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.

It’s no secret that saving for retirement can be challenging for the self-employed. PensionBee’s Invisible Worker research found that half of the British gig workers surveyed can’t afford to save into a pension. And when it comes to setting up a pension, nearly 30% of them said they wouldn’t know where to start.

Unlike the 20.8 million full-time employees who are paying into workplace pensions, self-employed workers don’t benefit from Auto-Enrolment. This workplace pension law was introduced in 2012 to make it easier for people to save for retirement. It meant that eligible full-time and part-time employees were automatically enrolled into a pension scheme, rather than having to opt in themselves.

Unfortunately, there’s no alternative for the self-employed, leaving many to set up and manage their own private pensions. While it might seem daunting, it can be straightforward to set up a pension and manage your retirement savings. Here’s how to get started today.

Why you need a pension when you’re self-employed

When your freelance business or entrepreneurial venture takes centre stage, saving for retirement can often be sidelined. But without a workplace scheme, it’s even more crucial to take action early. Why? Because relying solely on the State Pension - which is currently around £11,500 (2025/26) - likely won’t be enough to cover your living costs in retirement.

Investing in a self-employed personal pension gives you:

• financial security in later life;
• tax relief on contributions;
• compound growth through long-term investing; and
• flexibility and control over how much you contribute and when.

Step-by-step to setting up a self-employed pension

1. Assess your financial situation

Start by looking at your income, expenses, and how much you can realistically afford to save into a pension each month. Even a small, regular contribution can flourish over time thanks to compound interest. A good rule of thumb is to try and aim for around 10-15% of your income if you can. If your self-employed income fluctuates and that percentage feels difficult to work out, you could try using the 50/30/20 rule on each month’s income. This is where you allocate:

• 50% on current needs such as living expenses like rent/mortgage payments, food, bills and transport;
• 30% on current wants such as eating out, holidays and hobbies; and
• 20% towards future savings and debt repayments such as emergency savings, pension payments and other investments.

2. Choose the right pension type

As a self-employed person, you have a few pension options. All of which are types of defined contribution pension. This means the value when you retire will depend on how much you’ve paid in and how your investments perform. Two common options include:

• Personal pension - offered by providers like PensionBee, these are flexible and easy to manage online. You’ll be invested in a pension fund via the provider you choose which is then managed by professional money managers.
• Self-Invested Personal Pension (SIPP) - great for those who want more control over their investments. With a SIPP, you’ll choose and manage your own investments yourself.

Both options would mean your contributions benefit from tax relief, if you’re eligible. This is essentially free money from the government. Usually basic rate taxpayers get a 25% top up. This means when you pay £100 into your pension, it’s topped up with £25, bringing the total contribution to £125.

With all defined contribution pensions, the withdrawal age is 55 (rising to 57 from 2028).

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3. Research and compare pension providers

There’s lots of providers offering personal pensions. So when looking at your options, consider:

• Fees - look for transparent fee structures. Make sure you understand how much you’ll be charged and when. While some providers might charge multiple fees, PensionBee charges one simple annual management fee of between 0.50% and 0.95%. You can see the fee for all of the PensionBee plans on the fees page.
• Investment options - some providers offer ready-made plans, while others allow full control via a SIPP. When thinking about the investment options that are ready-made for you, consider your age and stage. Some providers offer higher risk plans which might be more suitable if you’re decades away from retirement. Whereas if you’re approaching retirement, you might want to look for a plan that lowers risk. You can see all of PensionBee’s plans on their dedicated page.
• Ease of use - lots of providers now give you the option to access your pension online or via an app. This can make managing your pension easier and more intuitive. With PensionBee, you can see your balance anytime via your online account, known as your BeeHive. Plus there are tools to help you manage your savings like their onboarding checklist, Retirement Planner and fund past performance chart.
• Customer service and support - read reviews and see how easy it is to get support when needed. Check the provider’s website to see what tools and resources are available. On the PensionBee website, you can read blogs, watch videos and use tools like their calculators to help you plan for retirement.

4. Open your pension and set it up

Once you’ve selected a provider and pension type, you should be able to set it up online. You’ll typically need:

• Your personal details - including contact details, identification documents, your bank details and National Insurance (NI) number. Need a hand finding your NI number? Read this handy guide.
• To choose an investment approach - many providers offer a range of plans based on risk tolerance or personal values and religion.
• To set up contributions - either a regular monthly payment, occasional lump sums, or a mix of both. With PensionBee’s self-employed pension, there’s no minimum contribution level so you can flexibly contribute as much or as little as you like.
• To transfer in old pensions - if you have existing pensions from previous jobs, it might make sense to bring them together into one plan. This can simplify your retirement planning and potentially reduce any fees you’re paying across providers - more on this later!

5. Contribute regularly

To lessen the admin of manually contributing to your pension, you could consider automating your savings. Set up monthly direct debits to make sure you’re regularly putting money away. Even if this is a nominal amount, consistency is essential for building a solid pension pot. And during higher-income months, you can give your pot a boost with one-off contributions.

If you’re unsure how much to contribute every month due to that irregular paycheque, PensionBee allows flexible contributions, so you’re not locked into a fixed amount. To help you visualise how your contributions build over time, you can use PensionBee’s Pension Calculator.

6. Consolidate old pensions

It’s estimated there’s around £50 billion in lost pensions in the UK. If you have pension pots you may have forgotten about, for example from previous jobs, you could bring them together into one plan. This could help you simplify your retirement planning and give you a clearer picture of your total pension savings. It’s worth doing a bit of research before combining any old pensions. For example, to make sure you won’t be charged any additional fees, or lose any benefits.

If you aren’t sure where to start, here’s a quick guide to finding any lost pensions.

7. Review your pension annually

Rather than ‘set and forget’, it’s a good idea to take time to review your pension at least once a year. Especially if your circumstances change. For example, if your earnings increase or decrease, you start a family or move homes. Mark some time in the diary to:

• review how much you’re contributing;
• check investment performance and fees;
• adjust your contributions if your income has changed; and
• re-evaluate your risk profile as you get closer to retirement.

Build your personal pension today

Whether you’re new to self-employment or have been building your business for years, saving into a pension is a crucial part of building a strong financial future. The earlier you start, the more time your money has to grow. Providers like PensionBee make the process simple, accessible, and flexible, so you can save for the future while focusing on your own business today.

Maria Collinge is a Freelance Editor and Writer who previously worked as Global Editor at Female Invest. Her writing focuses on gender equality in finance. She’s also written for a variety of other publications including Harper’s Bazaar, The Telegraph, inews, Metro, Glamour and more.

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.

The following is a transcript of a bonus episode of The Pension Confident Podcast - Personal finance tips for the self-employed. You can listen to this bonus episode or scroll on to read the conversation.

PHILIPPA: Hello, welcome back. Today, we’re sharing a special bonus episode all about managing your personal finances when you’re self-employed. PensionBee has been looking into this and its new Invisible Worker research tells us more than half of the British gig workers surveyed say they can’t afford to save into a pension. Nearly 30% of them also said they wouldn’t know where to start if they did want to set one up.

So today, we’re going to hear from a range of experts about how to save into a pension even if your income is unpredictable and how to keep your eye on the long term money picture even when your daily working life is taking up a lot of your energy.

Before we get into it, here’s the usual reminder that anything discussed on the podcast shouldn’t be regarded as financial advice or legal advice, and when investing your capital is at risk.

We’re going to start by going back to one of our most popular episodes - number 17 which was all about whether you should save into a pension or an ISA. The Financial Times’ Consumer Editor Claer Barrett joined us for that one and she shared her thoughts about how and where you might stash short-term savings in preparation for your next tax bill.

CLAER: I think the hardest thing for people who’re self-employed is feeling confident enough to lock money up, where you can’t get to it. That’s one of the reasons that pension saving among the self-employed is so low. But also, if you think about how your earnings can fluctuate when you’re self-employed. The luxury of having a salary where you’re getting the same amount of money hitting your bank account every month, where you don’t have to phone up your employer repeatedly to say ‘hello, can you pay me?’ - which is the life of the self-employed. Late payments are an absolutely massive problem for small businesses and for self-employed people. You may not get paid for something for months, so if you don’t have short-term savings pots to raid, then you’re gonna be in trouble.

So, say you’re paid £1,000 for a job, then you’d probably wanna put at least 20-25% of that money away for the tax bill that’s eventually gonna arise. That trips up a lot of people. But then maybe put another 10%, as Damien was saying, into an accessible place where you can reach it. Maybe an ISA, maybe premium bonds? You could win a tax-free prize while it’s sitting in there. But then if you can live without it for a year, then it’ll give you more confidence that you could actually lock it up into a pension, or invest it for the long term using a Stocks and Shares ISA.

PHILIPPA: Here’s Damien Fahy, Founder of Money To The Masses talking about how he balances looking after his business, his employees AND his family.

DAMIEN: I was the person who was only saving into ISAs for years, that was me. And part of that was down to flexibility because I had a young family and there was always that element that I might need to get the money out. And then I started running Money To The Masses. So effectively becoming self-employed meant then that I missed out on Auto-Enrolment. So ISAs, at one point, were a good way for me to start investing. But they also gave me the flexibility I needed, with a young family and if you wanted to buy a house and all those things.

So when I talk about my scenario, it’s because I’m technically a business owner. My staff are auto-enrolled and they all get the match on pension contributions. But then for me, as somebody who runs a business, you’re focused on the business and your staff, and you sometimes then have to take a step back and go, ‘well there’s something beyond this, I’ve got a family, I’ve got a future and I don’t wanna do this forever’. And so, there’s a point where you have to start doing exactly what Claer suggested and you have to start trying to put more money away each month.

PHILIPPA: If you’re a business owner, you might be wondering whether your business could also be your retirement fund, in the same way you might see property as a retirement fund. But according to Emma Jones CBE - founder of Enterprise Nation (she joined us for episode two) - that’s not quite as straightforward as it might sound.

EMMA: So, the interesting dynamic you have in people starting businesses is, many people who start businesses feel that the business will be their pension, and therefore they feel they don’t need to make any provision because the business will take care of them. And indeed, that was my situation. So, I started Enterprise Nation, I thought, “I don’t need a pension, I’m going to keep working at this business until I’m 85. This business is going to sort me out”. And actually, for me, it was Auto-Enrolment, that forced me into saving. So, everything in terms of the government influencing people to pay into pensions through Auto-Enrolment has absolutely taken place. So, I think sometimes you have to be nudged into action. You have to look at what your other fellow founders are doing to try and get experiences, you have to hear from trusted advisors as to what you should be doing. But I think to get the behavioural change that we need in entrepreneurs, you have to try and almost distinguish the entrepreneur from the business and say to the entrepreneur, “The business is a separate entity, you’ve started, and you’re growing this great business, but you also have to make provisions for yourself as an individual”. And I think when founders think of it in that way, that’s when pensions become much more attractive.

PHILIPPA: But realistically, if you’re self-employed and/or running your own business, there are going to be a lot of demands on your finances and some of them are going to be very pressing in the short term. Here’s Emma again.

EMMA: Anyone who’s listening who runs a small business or [is] self-employed, will know that there’s many, many other things that small business owners think about. They’ve got to get their product right, they’ve got to make their sales. We’ve talked about that before, maybe they’re going to hire people, maybe they’re exporting, and export has just changed. Business owners wake up and every day, they’ve got 15+ things that they need to think about and so it’s tough to get pensions as a priority on that [list] when business owners are very much for the here and now.

One thing, maybe as a start for small businesses, which can get overlooked actually, is just to keep money aside in your bank account. So, one of the things - small businesses tend to bring in cash, and therefore they think all of that cash is ready to spend. But of course, if you’ve got tax bills coming up, or you want investments to make, maybe set up a separate account where you’re putting money aside, so you feel that that’s a saving.

PHILIPPA: Speaking of keeping money aside in a separate account, here’s PensionBee’s Chief Business Officer UK, Lisa Picardo from episode 24 talking about something we mention a lot - that all-important cash cushion.

LISA: I think when you’re starting a business, it feels like everything, right? It’s your baby, it’s your passion, you’re so into it. But actually there’s a whole life outside of that as well and that has to continue. You need a roof over your head, you need to pay for your children and you need to keep the car going. You need to do whatever it was that you were doing before.

PHILIPPA: How big a cash cushion should you keep aside? Six months’ expenses or, I mean, what’s your suggestion on that? Because it matters, doesn’t it?

LISA: I’m not sure there’s one answer to that. I mean, I think it really depends - I think there’s two sides really, which is one, what are the factors around your business? And then the second is what are the factors around your lifestyle? Are you on your own? Do you live with someone? Do you have a partner that can help shoulder that financial responsibility of life whilst you’re starting your business? So I think it’s a very individual decision based on your circumstances.

PHILIPPA: Back onto pensions now and for self-employed people one of the common worries is how they’ll manage those contributions if their income varies from month-to-month. Here’s PensionBee’s VP Product, Martin Parzonka from episode two with a solution for that!

MARTIN: Companies like us, like PensionBee, and some others will offer flexible options. And so, we enable people to make regular contributions, but for as little as they want. So, if all someone can afford is say £2 a month, then they can set up a contribution for £2 a month on a regular basis. But also, that they don’t have to. They don’t have to set up regular contribution at all. They can just set up the intent to contribute, and then they can just throw money at their PensionBee account, and we’ll invest it as and when they can throw it at us. So, they have a good month, throw in £100, the next month, nothing. Doesn’t matter. The next month again, nothing, doesn’t really matter. Month after that, putting £50, totally flexible. We’re there when they want to contribute.

PHILIPPA: Let’s hear from Martin again as he explains why contributing into a pension - even if you aren’t able to commit a big sum every month - can be more beneficial than just stashing the money in a savings account.

PETER: Oftentimes, people would rather put money into a savings account, particularly lump sums as well. What’s your argument against putting money into a savings account, rather than just a pension?

MARTIN: So, there’s the tax benefits, then there’s also the investment growth benefit, or potential investment growth benefit. So, by putting your money into a pension pot, you can choose your investments and be invested in a range of assets, which could see rates of return above inflation. Now, past performance is no guarantee of future success. But it’s important to take these things into account.

PHILIPPA: And finally, let’s hear again from Emma Jones as she shares a helpful way to keep your eye on the long-term when you’re trying to run a business and save for your future.

EMMA: Consider those future options and be predicting: How do I want this business to grow? What do I want my own financial freedom to look like? And I know this can be tough when business owners are very much in the day-to-day.

And there’s no bad thing for business owners to do what I call “work on the business, not in the business”. Literally just to head out one day, find a big view, pen out your next three years in business. Pen out your next three years in your personal life. And I think maybe if we all do that slightly longer-term planning, we’ll hopefully realise all the things that we want, and indeed have the money to do it if we’ve got a great pension.

PHILIPPA: That’s it for this bonus episode and we’d love to know what you think was the most helpful takeaway? Let us know in the comments or email us at podcast@pensionbee.com.

You can listen back to all the episodes we mentioned in full on our feed - just look out for episodes two, 17 and 24. You can find us on any podcast platform and remember we’re on YouTube and in the PensionBee app too!

A last reminder before we go that anything discussed on the podcast shouldn’t be regarded as financial or legal advice. When investing, your capital is at risk.

Thanks for listening. See you next time.

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.

This article was last updated on 12/08/2025

As you enter your 50s, retirement may no longer be such a distant idea. Potentially, just a few years, rather than decades away, investing for retirement may be best served by a shift in approach.

When you’re further away from retirement, investments with a higher-risk/higher-reward can serve you better in the long term. They typically offer greater opportunities to grow and recover from market downturns. Our Global Leaders Plan is designed with that approach in mind. It’s aimed at savers further away from retirement to maximise their pension’s growth opportunity.

However, if you’re looking to start taking your pension as retirement income in the short term, you may want to consider a pension investment strategy that focuses on:

• preserving the money you’ve already built;
• steadier growth; and
• actively reducing the impact of market volatility.

PensionBee’s 4Plus Plan

Our 4Plus Plan aims to reduce the impact of market volatility compared to equities (company shares. It aims to protect balances and target growth, smoothing returns and bringing more certainty in the retirement years. It could be most suitable for people considering accessing their pensions in the near-to-medium term. This can support pension savers to transition more confidently into retirement while optimising their hard-earned savings.

Key features of the 4Plus Plan

Targeted growth

The 4Plus Plan aims to grow your savings by 4% per year above The Bank of England’s base rate over a recommended five-year period. It’s designed to grow the fund’s value above inflation so savers can withdraw a sustainable long-term income. This approach is also known as a target return strategy.

Risk management

The 4Plus Plan is actively managed. A team of money managers monitors global trends and adjusts how the plan invests on a weekly basis. This is a particularly important feature during periods of market volatility for those making withdrawals, as it can help to preserve retirement pots and protect against sequencing risk. Sequencing risk refers to the risk of making pension withdrawals when the market is down, which can have a negative impact on the long-term value of your retirement savings.

The 4Plus Plan’s long-term return target objective aligns with the 4% rule, the generally accepted rate for sustainable withdrawals, supplemented by modelling. This approach brings more certainty to those who wish to preserve their retirement pots whilst also making withdrawals, in a time of increased global instability.

4Plus Plan performance

Active management can play a crucial role during periods of volatility for those approaching or in retirement. It can soften the negative effects of falling markets on investments like pensions.

The following chart shows the 4Plus Plan’s performance (represented by the blue line) against MSCI World (the orange line) between 1 January and 31 May 2025*. MSCI World is an index that tracks the performance of the biggest public companies across developed markets. These include companies such as Microsoft Corp, Apple, and Tesla. It’s used here to show the performance of the 4Plus Plan compared to major global stock markets.

*with prices rebased to 100.

As you can see, the 4Plus Plan’s year-to-date performance is aligned with MSCI World when market volatility was low. However, it outperformed it between the end of February and the end of April. This is due to changes made by the 4Plus Plan’s portfolio managers to manage volatility as global equities (company shares) lost their value.

Early April is especially notable as a time of intense market volatility. This was driven, in large part, by the US President’s ‘Liberation Day’ announcement and subsequent tariffs on goods being imported into the United States. This news resulted in big market swings, which impacted the performance and value of many investments, including pensions. You can read more about what drove volatility in this period on our pensions and tariffs blog.

How the 4Plus Plan’s performed during historic market events

Since the plan’s inception in 2013, there have been multiple periods of volatility. Below you’ll find a list of a few recent and notable market events, as well as the above-mentioned US government announcements around tariffs.

Like many funds, the 4Plus Plan was impacted during these periods. However, as the table shows, the 4Plus Plan saw notably less decline in value compared to the FTSE World Index (which tracks global stock performance of both developed and emerging markets) in every case. The figures below represent how much in value a fund fell from its highest to lowest point before it started to recover.

During these periods, the plan’s money manager, State Street, responded to the particular market conditions at that moment. They did this by moving geographies and asset classes, such as:

• developed to emerging markets; or
• equities to bonds, real estate or cash.

This demonstrates the 4Plus Plan’s effectiveness in helping preserve the pension savings built up, as it reduces the impact of market volatility.

4Plus Plan performance during key market events

*Source: State Street, Investment Solutions Group. As of April 2025. Past performance is not a reliable indicator of future performance.

Summary

The 4Plus Plan’s active management gives it greater flexibility to respond to short-term market volatility. This approach serves the plan’s objective of helping those starting to think about drawing an income from their pension. It does this by adapting its approach to preserve the value of pension savings already built up in it.

This is why we’ve made the 4Plus Plan our default plan for customers aged 50 or over. For many people, at this point in their life, retirement considerations become more prominent. The 4Plus Plan can support you in preparing to make that transition.

Read about how our 4Plus Plan works in more detail on our dedicated blog.

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.

The following is a transcript of our monthly podcast, The Pension Confident Podcast. Listen to episode 40, or scroll on to read the conversation.

PHILIPPA: Hi, welcome back. Are you one of the 2.6 million people in the UK with ADHD? If you are, you might be finding it particularly challenging to stay on top of your finances. Why? Well, according to the organisation, Think ADHD, it can affect how your brain handles things like planning, focus, and organisation, all of which are pretty crucial when it comes to managing money. So paying off debt, saving into a pension, paying a bill on time, things like that can feel really overwhelming. So this time, we’re going to explore exactly why money and ADHD can clash, find out what can help, and take a look at how to build systems that’ll work for you.

I’m Philippa Lamb, and just before we begin, if you enjoy this episode, we’d love you to subscribe. Just hit the button. It’s completely free. It doesn’t cost you a thing. You’ll be the first to get every episode we release. On top of that, you’ll be helping new listeners to find us, too.

Here to help us dig into ADHD and coping strategies, I’m really pleased to welcome Krystle McGilvery. She’s a Financial Strategist, Coach and Behavioural Expert. Emily Tribe is back with us. She’s Head of Culture, Inclusion, and Wellbeing at PensionBee, and so is Registered Psychologist Dr. Tara Quinn - with us for the second time. Hello, everyone.

All: Hi. Hello.

PHILIPPA: Here’s the usual disclaimer before we start. Please remember, anything discussed on the podcast shouldn’t be regarded as financial advice or legal advice. When investing, your capital is at risk. Tara, I thought we might make a start by actually defining ADHD. What is it?

What is ADHD?

TARA: So ADHD is what we call a neurodevelopmental presentation. It can impact the front part of the brain, which is where all of our executive functioning is. So that’s the things that control, impulse control, our ability to plan and follow through with tasks, but also our emotion regulation. So it’s quite an important part. For people with ADHD, there can be differences in how they present and conduct themselves. Sometimes it can cause problems in their everyday life. Sometimes it can be a wonderful thing as well. So hopefully, we’re able to explore both sides.

PHILIPPA: Absolutely. We’re hearing so much about it in the media now. Krystle, you have ADHD. Tell me when you first realised that you did.

KRYSTLE: I’d just started my Master’s at Warwick University and noticed some struggles with my studies. Going back to university as a mature student, it’s a big contrast to the life that you’ve created, the systems and routines you’d put in place, but then going to university and doing a Master’s and following this new way of working. Yeah, that was quite disruptive for me. I noticed some struggles and went to the wellbeing section and explored it.

PHILIPPA: Really? They were helpful? Did they point you in that direction in the first place then?

KRYSTLE: Eventually. I mean, initially, because I’m a Chartered Accountant, because I’ve got a Bachelor’s Degree, because I’ve been working [and] heading up finance departments for years, they initially said, “oh, it’s because you’re studying psychology now as opposed to maths”. I had to push to get a dyslexia diagnosis because I’d done some reading and learnt about it. That’s when the world of neurodivergence really opened up to me.

PHILIPPA: Emily, you must come across this in the course of your work, but it’s a personal thing for you, too.

EMILY: Yes, it is. I’d say in general, neurodivergence is something that runs in my family. I’m also on the path that’s very common for women thinking about getting a diagnosis now in my 30s.

PHILIPPA: So does that feel like a positive thing for you now that you’re getting your arms around the idea that maybe this is why I feel like I feel, why I operate, why I operate?

EMILY: Overall, a positive thing, but I think it’s also quite a destabilising thing because it leads you to questioning a lot about your identity and the way that you’ve been throughout childhood, throughout your teenage years, throughout your adulthood. When you start to recognise how neurodivergence played into that and wasn’t picked up on, wasn’t recognised, there can actually be a bit of grief that comes alongside that as well as the understanding. I’d say it’s been mixed for me.

PHILIPPA: Yeah, because Tara, we hear a lot about children being diagnosed, school children, taking medication for ADHD. But later life, that’s really coming to the fore now, isn’t it?

TARA: Absolutely, and for women, particularly. When we look at the formal diagnostic pathway, people will be categorised, and we have what we call hyperactive presentation and inattentive. Inattentive is the stuff that we don’t tend to notice. It’s the less observable things, and that’s the stuff that women tend to predominantly have. People then are thinking back and going, “actually, I was accused of being a daydreamer at school”.

EMILY: I was just going to say that ‘head in the clouds’, ‘daydreamer’.

TARA: Some of these things that actually get missed, and women are much better at masking as well. So that’s covering up things that they might notice in themselves, how they conduct themselves around other people. So when you add those things together, you get this perfect storm, which is why, because we have so many more wonderful people talking about this now, helping us to understand, reducing the stigma and the shame. We have people going, “hey, this is me, and I’d like to pursue this”, but in a really compassionate way. And it’s not about this diagnosis, this label. It’s about formulating you, and what you need and what you don’t need. And that’s just how it should be. It really should.

PHILIPPA: It’s such an interesting conversation. We’re going to limit ourselves to money, really, in this podcast because there’s so much we could talk about with ADHD. But I’m wondering, Krystle, in terms of managing money, in your personal experience, have you found that ADHD plays into it?

Managing money with ADHD

KRYSTLE: Personally, for me?

PHILIPPA: Yeah, you’re an Accountant, so we’re all thinking you’d be good with money.

KRYSTLE: You’d think. It’s not the case. Not at all. I mean, there was one year that I particularly remember where I lost my bank card, I think four times in the year. But what’s really funny about this story is I’d find it after ordering a new one. But yeah, for sure, when it comes to the admin side of managing your money, doing your budget, even for me as a Chartered Accountant and someone who works in the space of finance all the time, some of these tasks are really monotonous and repetitive. Even as a finance expert, I struggle with some of these things.

PHILIPPA: As an Accountant, obviously, AI and tech really plays into that work now. Does that help you? Do you use that to minimise that repetition that you find challenging?

KRYSTLE: Oh, 100%. One of the common tips I think a lot of people make is around automation and taking advantage of standing orders. Setting up effectively your own Direct Debit. You’re just organising it yourself. Yeah, and same with the admin tasks. I use a range of software in my business that helps get that admin stuff done so I don’t have to think about it. Because back to what you said earlier, it’s less so about being a finance expert. It’s more about having the systems in place to support you in the way that you work. That’s what I’ve done for myself, and that’s what I support the people I work with, do and set up for themselves as well.

The ADHD tax

PHILIPPA: We’re going to get into all that because I think it’s going to be really useful for listeners. But Emily, we can actually quantify the cost of having ADHD. We’ve heard about the pink tax, the single tax, and now the ADHD tax. Tell us about that.

EMILY: The ADHD tax is the concept that all of these issues add up and end up costing money. I’ve got a personal example, which is [that] I really struggle with the executive function required to do a weekly shop at a supermarket and plan what I’m going to eat in advance. I end up just relying on shopping at the corner shop when I run out of stuff. And corner shops, I realised this, it really sank in for me when I saw a supermarket chain delivery van delivering to my corner shop. And I thought, if they’re stocking up from the supermarket, there’s a big mark up there.

PHILIPPA: I’m paying the profit difference there.

EMILY: Yeah. Also, I’ve been trying really hard to get into budgeting recently and using some AI to help me get there and saw how much I was spending on eating out and takeaways, partly because of the executive dysfunction of not being able to have a stocked cupboard and cook from scratch.

PHILIPPA: Because this is the study, the one I’m looking at here is from Monzo, the bank, and they’re saying about £1,600 a year, it’s going to cost you [to have] that dysregulation, that just not being able to plan ahead easily. So, yeah, serious money.

Executive dysfunction

PHILIPPA: Tara, we’re going to get into specifics about how ADHD manifests with people in relation to money. But the overarching term for it would be executive dysfunction?

TARA: Yeah. So the front part of our brain does all these wonderful things, but sometimes it can go on holiday, sometimes it can have little rewiring problems. And it controls our ability to plan and to follow through with tasks. So what we see more often in people with ADHD are issues then in terms of what do I need to do with my money, where does it need to go, and actually then following through on that. But also if you add in the other functions of that part in the brain, sometimes you can be more impulsive about what you’re buying. Your emotions are a huge part of that as well. You can have more of that, in the moment “I want that”, which may then mean that something else isn’t going through, standing order, a debit is cancelled, or you might not also be keeping track. If we throw in the fact that we’re all humans and we have emotions, sometimes you’ll notice those behaviours, maybe at a later stage, sometimes that can infect your emotions. You feel a bit of shame or guilt or low mood because you haven’t got enough money to cope, or that you did this behaviour and it’s something you know you do. It’s looking at what we call those behavioural loops and trying to be really compassionate because that’s a lot to manage.

PHILIPPA: It’s like you were saying earlier, that whole “I did this stuff” and actually only now really understanding why you did that stuff.

EMILY: Self-compassion is the biggest one because I find I get in a cycle where I’ll be really impulsive, spend lots of money. Then the next month, I’ll put as much money as I physically can into a savings account. I’ll be like, “I’m not going to touch that”. Then I inevitably end up doing that because I’ve set too much of a restrictive goal. Then when you add in shame on top of that, you just keep yourself in the cycle.

TARA: I’m so glad you said that because conversations like this can help to reduce the shame that if someone listening goes, “this is something that we all do”, and people without ADHD do as well. We’re all subject to having issues with our frontal lobes and impulsivity. The more we talk about it or the more you share with friends, family, the more, actually, you can help each other. I think that’s a good thing.

Impulsivity

PHILIPPA: It’s not uncommon this impulsivity, is it? That study, that Monzo study, they say 48% of people with ADHD, they do this often, they struggle with impulse control, and that’s compared to 12% of those without it. It’s a big difference, isn’t it? It’s a big driver of that problem. Krystle, I’d like to talk about strategies, specifically around impulsivity. How can people try and iron that out of their day to day?

KRYSTLE: Yeah, it’s so funny when you mentioned the delay part not being a thing. For some people, it works. Some people waiting 24 hours or seven days actually works because they come back and they’re like, “I don’t really care to buy that thing”.

PHILIPPA: Oh, is this the ‘put it in your online shopping basket, but don’t buy’?

KRYSTLE: I was going to mention that, yeah.

PHILIPPA: I use that myself. A lot of us find that quite helpful, actually.

KRYSTLE: You get that dopamine hit of, actually, “oh, I’ve got this stuff in my basket that I could buy”. Then you’ve got to go and cook dinner, then you’re going to bed, and it’s the next day and it’s, “oh, what’s that? Clear it out”. That’s one tip. I think the other is this comes down to the initial organisation and maybe having pots of money for different things. Where you maybe have a bank account that’s for your bills that you have to pay. You don’t need to think about that. But having a space where you have ‘fun money’, where actually you can be a bit reckless with that. You’ve put away your savings, you’ve invested, but you’ve got this spare bit and you can see quite clearly, Well, that’s all I have. It doesn’t have an overdraft feature as well, for example.

PHILIPPA: Absolutely.

KRYSTLE: But then you can be free and allow yourself to have fun because there are going to be moments when you actually just want to buy the thing.

PHILIPPA: That’s a nice idea.

EMILY: I haven’t tried that before, having a fun money budget. I really like the idea. I’ve tried doing a daily budget before and then never end up sticking to it, whereas that - I’m going to go away and use AI to work out what my fun money budget could be.

KRYSTLE: The way I look at it is the wrong way to go about it is saying, “I’m going to stop this bad habit, full stop” because actually it’s serving a purpose. There’s a reason why that habit, whether it’s good or bad, exists. Instead, what we’re doing here is we’re putting something else in place that helps it not be so bad. You’re still satisfying that need.

PHILIPPA: I’m with you. It feels easier to do, doesn’t it? If you frame it that way, less of a hill to climb. The other thing I’m thinking is, the society we live in, we’re driven to spend, aren’t we? If you have a tendency to impulse spend, it’s the worst possible time to exist in the world, isn’t it? So strategies around trying to reduce that noise?

KRYSTLE: Oh, 100%, yeah. I do it myself. I have to go through my emails and just find who’s telling me to buy things and actually just delete, unsubscribe, and get rid, because then it’s not brought to your attention. That’s how it works. If we look at certain products and services and the colours they use and the positioning of how they set up their web pages, they’re using behavioural science, which is my area of expertise, to get you to do the thing. So actually, you can be a bit smarter and be like, “actually, I’ve unsubscribed to that. I’m not going to go there anymore”.

PHILIPPA: Because it really matters, doesn’t it, Tara? Because just having it arrive in your inbox and then deleting it isn’t the same thing, is it?

TARA: Absolutely. I’ve noticed recently, I could be on social media and an advert will come up for something, and I might look at it or even click on it, but then it’s everywhere else. Everything’s against you. That can also help when we come back to self-compassion, that actually this isn’t you and your brain and something wrong with you. You may have your formulation, but these companies are also doing stuff.

PHILIPPA: It’s a whole industry.

TARA: Absolutely. That can help - we can all get drawn into that. What we look at in psychology are what we call our internal regulators. What have I got in me to go, “no, yes, change my environment, what am I looking at?”. But also that there are external regulators. That’s turning off stuff, staying away from things. Doing different pots of money, using AI and different apps as well and getting that perfect balance that fits you.

Time blindness

PHILIPPA: Let’s get back to our list of characteristics and the way this manifests for people. I’m thinking the next one that’s really interesting is time blindness. Tell me about that.

TARA: Again, part of our frontal lobes, our ability to pay attention in the moment can mean it’s very easy to lose track of time and what we’re doing. One of the things you might notice more of in people with ADHD is getting from A to B, for example, and getting there on time, or things like hyper focus, for example, where you’re looking at something, concentrating on something that could be work, outside of work, and four hours have gone by. What it can mean is that you’re more susceptible, therefore, to spending money in different ways. You may realise you’ve been in a pub for four hours, five hours and drunk so much. It’s being orientated and just being compassionate because it’s quite a hard thing to catch actually as well.

PHILIPPA: Yeah. Also, things as simple as being regularly late for work. It’s not going to play well, isn’t it? In long-term career progression, earnings, all that sort of thing. Just little things, but more directly about money, paying bills on time, presumably. You’re nodding.

EMILY: Well, I just automate everything. If it can be automated, I automate it. I set a lot of alarms, a lot of reminders. But the worst one is things that don’t come up very often - tax return every year. I don’t think I’ve managed to complete a single tax return without having at least two meltdowns.

PHILIPPA: Really?

EMILY: Because I hate breaking rules as well. I’m very rule-focused. I accidentally missed a rule because I misread something about the tax return. There was some difference between doing the online/offline version. I can’t quite remember. But anyway, I missed a deadline and I was just devastated by the fact that I’d missed this deadline. It worked out completely fine. I didn’t even have to pay a fine.

PHILIPPA: Yeah, but the anxiety is real, isn’t it? Because, yeah, that study, again, three times more likely to miss bill payments, according to that, ADHDers. That’s a lot. There’s real financial consequences to that, aren’t there? But I’m guessing automation, Krystle, here.

KRYSTLE: Yeah, automation for sure. Like you said, the consequences might be a fine or a fee or other spiralling problems, which can be really problematic. I mean, time blindness is such a real thing, 100%. Actually, it works on both sides because it allows you to complete some amazing things and really drill down into things. But I’ve got this really nice, old-style alarm clock on my table. I set a timer for the work I want to do. Because it’s so loud and aggressive, it’ll disrupt me. But it’s when I need to do a specific task, like update my financial planner, for example. It’s going to take me like an hour, and I’ll get really into it and excited. Before you know, it could be three, four hours, but the alarm clock will stop me in my tracks.

PHILIPPA: Yeah, now it’s interesting using an alarm clock because everyone would automatically think, set a phone alarm, right? But this is a regular noise, isn’t it? They’re quite easy to ignore, aren’t they? The quotidian things.

TARA: It’s easy to stop like [hitting] the snooze button. That’s what you call an external regulator. But your brain will also then just associate that with that thing. Then your brain will be doing loads of stuff for you every time you use that alarm clock for other things as well.

PHILIPPA: But it’s important, and you mentioned this before about the hyper-focused thing. That’s not necessarily a bad thing?

TARA: No, there’s loads of wonderful research about people with ADHD and how hyperfocus can make them incredibly brilliant people to have in the workplace, innovators, entrepreneurs. It’s just recognising that sometimes, like with any behaviour, there can be pros and cons. If you’re hyper-focused and you’ve missed your train to work, or you’re supposed to go and pick your kids up, or you were supposed to do something else, it’s just, again, bringing, we’re going to use that word a lot, compassion around that as well. Try stuff out. That’s what we always say in psychology, test it out. Let’s see if this alarm clock works. What happens after an hour? Do I tend to just turn it off, put it in a drawer, or am I paying attention to it? That’s where the compassion can really help you build up your strategies as well.

PHILIPPA: Yeah. I mean, strategies - just from someone who doesn’t have this, I find my online calendar is an absolute godsend for me in terms of things like you’re saying tax returns, car tax, all those things that pop up only once a year and aren’t on the edge of your consciousness. I throw them in my calendar on repeat every year. It works so beautifully. In some ways, digital is great, isn’t it, for this stuff, as well as driving bad behaviours. I’m guessing things as simple as that. Krystle, do you find it works for the people you work with?

KRYSTLE: Oh, 100%, yeah. I think when we think about finance, again, people think it means numbers and actually being good at that stuff. But no, it’s about having a system that works for you. I think what we’re talking about here is time blocking. What I do in my diary is I actually block out times to do things. So not just for meetings, but actually, “how long will it take me to do this financial planner? How long will it take me to check and update my subscriptions?” and actually put that in my calendar. But same as you, my diary, my calendar is my life.

Body doubling

PHILIPPA: We’ve talked a lot about tech, which is obviously really, really helpful. I’m wondering about other people. Can we co-opt other people to assist with this sort of thing?

TARA: Oh, absolutely. I’m such a dinosaur psychologist. This is old-school stuff. Looking at your environment and the people. Those external regulators can be people or things. If you’ve got a partner or a friend who knows that you’re the person who might be late to the pub or has got the tickets for the airline on their phone or whatever that can message you beforehand and ask you, “what do you need? How can we make this easier?”. And that’s why having the conversations are so wonderful.

PHILIPPA: It’s a lot, isn’t it? I suppose I’m thinking about Emily sitting down doing her tax return and hey, none of us love doing this, right? But if you had someone actually with you while you’re doing that task, so not just telling you, reminding you to do it. Is that at all helpful?

EMILY: I think I’m more inclined to just pay someone to do it for me.

PHILIPPA: Well, there’s that way. Obviously, more expensive. But I’m going to say that’s the more expensive option. It’s called body doubling, isn’t it?

KRYSTLE: Body doubling, I think, is a godsend. It’s worked with so many people I’ve worked with. I need it myself with certain things. It’s where you, if we think about doing it online, because I might be at home. We jump on a Zoom together and we don’t have to work on the same thing. You could be writing a book or you could be, I don’t know, planning your meals for the week, but I’m doing my budget. But we’re both in this space together, committed to doing a task with each other. It’s so powerful. I’ve had people, and I conduct these spaces as well, but I’ve had people get things done that have been on their to-do list for months and months and that you feel so good and so proud of yourself. It’s something about being with somebody, the co-regulation in that space. Try it if you haven’t.

Emotional dysregulation

PHILIPPA: That brings us very neatly to generally emotional dysregulation around money. I mean, shame, guilt, all that stuff we do again and again that we know isn’t good for us or others and just isn’t working for us. You do, the self-loathing creeps in, doesn’t it, about repetition? Why are you doing it again to yourself?

TARA: We’re always the biggest critics of ourselves. We’re less likely to say that to a friend. I always say, a compassionate friend, if your friend was telling you what they’ve just spent and how they feel about it, you’d always judge them differently to yourselves. It’s how we’re hardwired. But being compassionate about it and having conversations also just reduces what I call the ‘ick’. When it’s up here, we tend to feel worse about things. Once we said, “you know what? I feel really guilty or shameful about what I’ve done”. You do feel better.

EMILY: On the point of emotional regulation, probably the thing that’s been most helpful for me is therapy, which isn’t obviously available to as many people as it should be, but having someone who gets it to go and speak to every week about what’s going on. And I think back to the point about not piling on shame, like viewing everything as a learning opportunity.

PHILIPPA: So that’s it, Krystle, it’s understanding what you’re doing, understanding you might do it a few times or keep on doing it, but taking the lesson, because otherwise you’re trapped in that repeat spiral, aren’t you?

KRYSTLE: Yeah. When it comes to making a decision, impulse spending, for example, what I like to remind people is you’ve made this decision because there’s an emotional need. You feel a certain way, and there’s nothing wrong with that. Actually, maybe looking at the fact that, for example, you’ve impulse spent, that’s your go-to technique right now to deal with that emotion. All that needs to happen is maybe learning a new way of doing the thing when you’re feeling that emotion. Reframing that lets people let go of that negative feeling they’re feeling about, “oh, I’ve done this thing again, and it’s problematic.”

Support and resources

PHILIPPA: There’s a huge amount of information about ADHD online, and I’m wondering about curating what’s useful and what isn’t. I don’t know if you have recommendations for people if they want to read into understanding themselves more. Have you got favourites?

TARA: I have unfavourites. Is that alright to say? So I always say, because I’m such a huge pusher of making sure that whoever is talking about it is someone who knows what they’re talking about. So there’s lived experience, which I think is fantastic, absolutely. But also there are people in the mental health space who’re talking about things that are factually incorrect, and therefore you might be more prone to buying and following and paying for programmes and things that aren’t helpful. Look at things like the NHS website, ADHD UK, and they’ll have branches of where to go from there. So they’ll have people talking about lived experience. Follow podcasts where people are talking themselves about experience, and they’ll have lovely lists of things to follow.

PHILIPPA: Guidance you can rely on.

TARA: Yes, absolutely. And it’s nice and structured. So one thing, take it from there.

PHILIPPA: Thinking about the people you work with, Krystle, I mean, how long do you tend to work with people?

KRYSTLE: It ranges. Some people actually just need a little boost, and it might just be a quick phone call. Or sometimes some people work with me over several months, actually. That might be where we start with the reframing and actually getting you to think differently about yourself and what you can achieve and what’s possible for you. Because I think a lot of people start to think that certain things aren’t possible for them, like buying a home or investing. Actually, it is. We just have to find our own ways of getting there. That might be a couple of months, including actually some basic knowledge around debt management or credit score building and things like that.

ADHD and the finance industry

PHILIPPA: The saving, pensions, investments, all the things we normally talk about in the podcast. That’s a stress space here, isn’t it? Because it involves planning, doesn’t it, Emily? Yeah. You’re nodding at me. This is your area.

EMILY: I’m not here because I’m the person who’s cracked financial planning.

PHILIPPA: But it’s a challenge, as you say. If you’re going to struggle with, “what am I going to eat? What’s my family going to eat next week?”. The idea of when I’m older, what will I need? How much money? I mean, that must seem really hard to grapple with.

EMILY: Well, actually, that’s one thing that I’ve done and I’ve prioritised, which is a monthly contribution into my pension that I can afford. I was going to say, I think pensions are actually quite a well-designed financial product for people with ADHD because they’re ring-fenced from impulsivity.

PHILIPPA: You can’t take the money out.

EMILY: You can’t access the money until you’re 55. That was why I prioritised it because I was like, once it’s there, I don’t have to think about it and I can feel good about it and knowing I’m doing something for my future.

PHILIPPA: Yeah, that’s very affirming, isn’t it? I’m thinking there’s 2.6 million people, I think, with a diagnosis. We’ve talked about the possibility of many, many more who don’t, who’re undiagnosed officially. Are banks and the finance industry generally getting their arms around this and offering help, Emily, in your experience? It’s your sector.

EMILY: I think it’s really starting. I think the biggest thing is actually just about listening to your customers. At PensionBee, we do a lot of focus groups and interviews, and we’ve done those with our customers who’re neurodivergent as well.

PHILIPPA: To understand what they want?

EMILY: Yeah, but also I think there’s something really interesting, which is called the Curb Cut Effect, which is about these adjustments that we make for people with a disability actually end up impacting most people positively. They lower the curbs for wheelchair users. But actually, as I discovered on maternity leave, it’s very, very helpful for people with prams. It’s very helpful for people with heavy luggage.

PHILIPPA: That’s such an intriguing idea. I’ve never thought about it like that before. But as you said, well we’ve talked about in this podcast, the things you’ve all been talking about, some of them I use already, and I’m not an ADHDer.

EMILY: They just make good sense. When it comes to our product at PensionBee, we’ve designed it with simplicity in mind, and that helps people who might have ADHD or other neurodivergence, but also it just helps everyone. Everyone enjoys using a simple product. We also have BeeKeepers, so everyone gets that human support. Someone they can call. Lots of people with neurodivergence hate phone calls so we also have live chat, email. It’s about having flexibility, simplicity, and listening, I think.

PHILIPPA: Multiple channels. Krystle, what’s your take on the finance industry? Who’s doing what?

KRYSTLE: Yeah, you’ve got quite a few banks. For example, NatWest have a panel which is all about neurodiversity and creating spaces and making sure their products and services support people with ADHD, for example.

PHILIPPA: I think Barclays, you can actually register with them, can’t you, for tailored assistance? What might that look like?

KRYSTLE: Yeah, it’s phenomenal. It’s about them getting first-hand experience to understand what needs you have so they can incorporate that into their services, which is phenomenal.

PHILIPPA: Yeah, it is. I think M&S, their bank, I think they’ve partnered, haven’t they, with the ADHD Foundation to do work in this area?

KRYSTLE: Yeah, as well. I think what they do is great. They provide actual guidance and support and content for you to help manage your finances properly. I think that’s where it’s really helpful because you can go through the list of everything that’s there and be like, “I’m going to pick and choose these things that work for me”.

PHILIPPA: Yeah, and I’m glad to see, actually, looking down my list of banks and financial institutions, it’s not just the big ones because there’s a challenger bank, Neuros. I think they’re developing tools specifically for neurodiverse customers, too. It’s spreading, isn’t it? But it’s encouraging to know it’s coming.

Thank you very much, everyone. Great discussion. That’s it for this time. You’ll find all sorts of useful links in the show notes. If you want to dig a bit deeper into ADHD and money, remember to give us a rating and a review, it only takes a moment, I promise.

If you missed an episode, don’t worry, you can catch up anytime on your favourite app or YouTube, or if you’re a PensionBee customer, of course, in the PensionBee app.

Join us next time when we’ll be talking about multi-generational living. Now, with housing costs sky high, working people, time poor, could it be a good solution for people of all ages? Just a final reminder, anything discussed on the podcast shouldn’t be regarded as financial advice or legal advice. When investing, your capital is at risk. Thanks for being with us. We’ll see you next time.

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.

We have lots of features to help you plan and adjust for a happy retirement, from our Pension Calculator to our fund performance chart. But managing your pension also means keeping on top of other important features on your journey to and into retirement. This month, we take a look at how your Annual Statement can help you keep your retirement goals on track and why adding your pension beneficiaries matters.

Annual Statement

You can check your PensionBee pension’s balance from your BeeHive anytime. It’s a convenient way to keep track of how much you have, especially as your balance changes daily. Setting aside time to review your Annual Statement can be a good time to look at the wider picture.

Following the end of each tax year, we send you a summary of your PensionBee pension - your Annual Statement. It provides an easy-to-digest overview of your pension’s value and helps you see:

• whether your savings are on track to help support you financially in retirement; and
• whether you need to make any adjustments to help you achieve your goals.

Your Annual Statement shows you three things:

1. how much money you already have in your pension plan;
2. how much money you could have on your retirement birthday; and
3. what you could do to give your savings a boost.

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Our projections give you an idea of how your plan may perform over the coming years. Figures are estimates and consider the impact of inflation on your savings between now and your ‘retirement birthday’, i.e. the date you let us know you expect to retire.

When you look at how much your money could be worth in future, you’re looking at its purchasing power. So, the figure provided is an estimate of what we think the size of your pension on your retirement birthday would be able to buy you today.

Where to find your Annual Statement:

1. log in to your BeeHive and go to ‘Account’;
2. click on ‘Documents & Resources’ (‘Resources’ in the app); and
3. scroll to find all your Annual Statements here.

Your Annual Statement and our retirement planning tools

You can combine the information in your Annual Statement with our other tools to help you plan or adjust for life in retirement. For example, use your BeeHive’s ‘Retirement Planner’ to see how adjusting your contributions could impact the value of your pension and how much retirement income you could have.

Nominating your beneficiaries

Naming your beneficiaries is all about ensuring that when you die, your pension goes to the person or people you want it to. Pensions aren’t generally considered part of your estate, so you won’t be able to pass them on through a will. If you don’t nominate anyone, your pension will often go to your next of kin. But to be sure it goes to who you prefer, it’s important to let your pension provider know.

You don’t have to leave your entire pension to just one person. Instead, you can leave a portion of it to multiple people or even a charity.

How to add your beneficiaries

It’s quick and easy to add your beneficiaries to your BeeHive.

1. Login to your BeeHive and click ‘Account’;
2. click or tap on ‘Beneficiaries’;
3. choose if you want to add a ‘Person’ or ‘Charity’; and
4. add your beneficiary’s details and how much of your PensionBee pension you want to leave them.

Alternatively, watch our how to add a beneficiary video.

After you’ve added your beneficiaries, you can leave special instructions for how you’d like your PensionBee pension to be treated.

You can name up to four beneficiaries through your BeeHive. If you’d like to add more, email your BeeKeeper to let them know.

Understanding what could happen to your pension when you pass away is an important part of financial planning. It can be tricky to navigate, but you can find further helpful information on our Pensions Explained centre, starting with our pension rules after death article.

Future product news

Keep your eye out for our next product blog or catch up on previous blogs. 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. Once released, we’ll let you know what they are and how they can help you save for a happy retirement.

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.

Managing your finances can feel like a juggling act at the best of times. But if you’re one of the estimated 2.6 million people in the UK living with ADHD, it can feel even tougher. Tasks like paying bills, budgeting, or saving for a pension can easily slip through the cracks. Not because you’re careless, but because your brain works a little differently.

ADHD (Attention Deficit Hyperactivity Disorder) affects the way people process information, focus, plan and stay organised. Since those skills are essential for day-to-day money management, it’s no surprise that many people with ADHD find personal finances particularly overwhelming.

So why exactly does ADHD make money harder, and more importantly, what can you do to make things easier?

Impulsivity and emotional spending

Impulsivity is a common trait in ADHD, and it can show up in your financial habits as unplanned spending. That might look like buying things on a whim or giving in to retail therapy during times of stress. It’s easy to justify small purchases in the moment, but they can add up quickly.

What helps:

• Wait it out - use a ‘24-hour rule’ before making non-essential purchases. Save the item to a list or screenshot it, and revisit it later.
• Create a ‘fun budget’ - set aside a manageable weekly amount for guilt-free spending. That way you don’t have to avoid spending altogether, you have a set amount you can spend.
• Declutter your triggers - unsubscribe from marketing emails or unfollow social media accounts that tempt you to spend.

Time blindness

Time blindness is having difficulty keeping track of time or visualising the future. This can make it harder to remember when bills are due, or to plan for long-term goals like retirement.

What helps:

• Automate payments - set up direct debits for things like monthly bills, credit card payments, and regular pension contributions.
• Visual cues - use wall calendars, sticky notes, or colourful digital reminders for key dates.
• Set reminders - schedule regular monthly check-ins labelled ‘Future me – finances!’ to help build the habit.

Executive dysfunction

People with ADHD can find it hard to start, plan, or finish tasks, especially ones that feel boring, like budgeting or sorting out paperwork. This can lead to procrastination, avoiding money tasks altogether, or create difficult situations further down the line.

What helps:

• Break it down - split big tasks into small steps. Instead of setting yourself the goal of sorting out your pension, break this into more manageable steps like finding your login details or checking your annual statement.
• ‘Body doubling’ - working with someone else, either in person or virtually, can help provide focus and motivation needed to complete tasks. It could be a friend, partner, or just someone else being in the same room.
• Use a timer - try the Pomodoro method. This is a time management technique where you allocate 25 minutes to focus followed by a short break. It could help you get started on a task without feeling overwhelmed.

Hyperfocus and burnout

Hyperfocus can mean spending hours creating the perfect budget spreadsheet, only to abandon it a week later out of exhaustion or boredom.

What helps:

• Keep it simple - choose tools or apps that track spending automatically. The less maintenance, the better.
• Limit time - set short sessions (e.g. 20 minutes a week) to check in on your finances, rather than long deep dives.
• Make it a habit - create a regular slot like ‘Finance Friday’ to build a sustainable rhythm.

Emotional dysregulation

ADHD can make it hard to manage emotions, which can show up in your financial habits. You might spend to feel better in the moment, then feel ashamed or avoidant afterwards.

What helps:

• Pause and name it - ask yourself, “what am I feeling right now?” before spending. It’s often about the emotion, not the item.
• Practice self-kindness - treat yourself as you would treat a friend. Mistakes aren’t failures, they’re feedback.
• Share your goals - having someone supportive to talk to can help keep you accountable without judgement.

How financial services are starting to adapt

Some banks and financial providers are beginning to design services with neurodiversity in mind. Features like simplified communications, personalised support, and inclusive design are becoming more common. These changes benefit everyone, because when products are built with accessibility in mind, they tend to be easier for all of us to use.

If you have ADHD and find money overwhelming, know that you’re not alone. With the right strategies and tools, you can build a system that works for your brain, your life, and your financial future.

Listen to episode 40 of The Pension Confident Podcast as our expert guests explore the relationship between ADHD and money management. You can also read the full transcript. There’s a handy list of links to helpful resources and support in the show notes too.

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.

There was a time when retirement meant closing the door on your career and never looking back. You’d clock off for good at around 65 or so, collect your pension and start a new life. Whether that’s pursuing your passions, taking up new hobbies, or jetting off to see places you never got the chance to. But fast-forward to today, and more people are going about retirement a bit differently.

A study by Indeed Flex found that nearly a third of UK retirees are considering returning to work to cope with rising living costs. Additionally, almost one-in-six have already ‘unretired’. The majority (53%) cited the need for additional income as the main reason.

Welcome to the world of unretirement - a growing trend where people head back into work after they’ve already called it quits. But for some, unretirement isn’t just about boosting their finances. It’s because they’re not quite ready to give up the structure or sense of purpose that work brings. Whatever the reason, it’s changing the way we think about later life - and how we plan for it.

So what does unretirement look like in practice?

What exactly is unretirement?

To put it simply, unretirement is when someone retires - either fully or partially - and then returns to work later on. That could mean picking up a part-time role, launching a freelance career, or even starting their own business. It could be a few days a week in a job that feels fulfilling, or something more casual that fits around other commitments.

But unretirement doesn’t always mean returning to the same kind of job you had before. In fact, for many people, it’s a chance to do something different. That could be something with less stress, more flexibility, or something that brings joy. The key factor is choice. Rather than working because you have to, unretirement is often about working because you want to, and doing it on your own terms.

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Why is unretirement becoming more common?

There are a few reasons the trend of heading back to work later in life is gaining traction. It’s not just about money - though that can definitely play a role.

For one, people are generally living longer, healthier lives. That means hitting retirement age doesn’t always come with a desire to slow down. Many still feel healthy, sharp-minded and full of ambition. A 30-year stretch of retirement might sound appealing at first, but for some, it starts to feel like too much downtime. Especially if they miss the routine, social interaction or sense of purpose that work can bring.

That’s reflected in the numbers, too. According to the Office for National Statistics (ONS), the average age of leaving the workforce rose to 65.7 for men and 64.5 for women in 2024 - the highest since records began. More people are clearly either choosing or needing to stay in work longer. And with many of us now facing the prospect of a 100-year life, it makes sense that retirement is starting to look less like a finish line and more like a flexible, extended phase of life. You can read more about the 100-year life on the PensionBee blog or listen to episode 26 of their Pension Confident Podcast.

The way we work has also changed. With more flexible hours, remote roles and freelance gigs on offer, it’s easier than ever to earn without locking into a traditional full-time job. Whether it’s a few days a week, something seasonal or a complete career pivot, the options are out there. These types of jobs often fit around retirement rather than disrupt it.

Of course, the financial side can’t be ignored. The cost of living keeps rising, and some people find their pension or savings don’t stretch as far as they’d hoped. A return to work, even part-time, can help ease pressure or fund some of the nicer things in life. But for many, it’s not just about the money.

Full retirement doesn’t suit everyone, and unretirement offers a middle ground, one where you can still work but on your own terms.

How does this change retirement planning?

Unretirement changes how we think about retirement, not as a permanent full-stop, but more of a gradual transition. And that has some interesting implications for how we plan ahead.

If there’s a chance you’ll earn some money after retiring, you might not need to draw on your pension as early or as heavily as you originally thought. This can give your pension pot more time to grow and benefit from compound interest - where you earn interest on both the money you put in and the interest it’s already made.

It could also make retiring feel a bit less daunting. If you know you’ve got the option of picking up some extra work later down the line, it can make the idea of retiring earlier - or reducing your hours gradually - more appealing. That flexibility can be really valuable, especially if your priorities change as you get older.

At the same time, returning to work after retirement can raise new questions. For example:

• how your income will affect your tax bracket;
• what happens to your pension contributions; and
• whether you can still pay into your pension while working.

The good news is that it’s possible to do most of these things. It just means thinking a little differently about how your finances are structured.

What unretirement means for your pension and savings

If unretirement is something you think you might want (or need) to do in the future, it’s a good idea to build that possibility into your plans now. That doesn’t mean you should assume you’ll have to work again, but it helps to be open to the idea and have some flexibility in your financial setup.

And so, here are a few things that might be worth thinking about as you head towards retirement:

• Think carefully about when you access your pension - if you can afford to delay, it might be worth doing so, especially if you’re still earning income elsewhere. Delaying means your pension stays invested, giving it more time and opportunity to grow. Plus, if you’re still working, you can continue contributing and benefiting from tax relief. Usually basic rate taxpayers get a 25% tax top up while higher and additional rate taxpayers could claim more through their Self-Assessment. You can use PensionBee’s Pension Tax Relief Calculator to see how much you could get.
• Save as though you’re not going to work again - that way, if you do ‘unretire’, it’s a bonus rather than a financial necessity. While you’re still earning, try to make the most of your tax-free annual allowance. For 2025/26, it’s 100% of your salary or £60,000 (whichever is lower). If you haven’t used the full amount in previous years, you might also be able to take advantage of the carry forward rule. This is where you can carry forward any unused allowance from up to three previous tax years and still receive tax relief.
• Be mindful of the money purchase annual allowance (MPAA) - if you start drawing down from your defined contribution pension and then go back to work and want to continue contributing, your annual allowance (mentioned above) gets reduced to £10,000 (2025/26).
• Keep some emergency savings handy - life can throw surprises your way and so having a cash buffer means you’re less likely to need to draw from your pension in a pinch. A good rule of thumb is to keep around three-to-six months’ worth of your essential expenses set aside, just in case.

These are small steps, but they can make a big difference when it comes to keeping your options open and reducing stress later on.

Can your pension still work for you if you unretire?

The answer to that is a yes, and it absolutely should. A good pension should support your lifestyle, whether you’re fully retired, working part-time, or dipping in and out of jobs.

The ability to pause or adjust your withdrawals, track your performance and make changes when needed can help make sure your pension fits around your life, not the other way round. Pension providers like PensionBee help you simplify your pension savings into one easy-to-manage online plan. You can see your balance anytime via the website or app so you’re not left second-guessing how your savings are doing. You can even see how much income your pension could generate in e retirement savings using their Pension Calculator.

Your pension should be a tool that gives you flexibility and the freedom to either stop working, return if you want to, or do a bit of both. That’s why planning ahead, staying informed and choosing the right provider should be a top priority.

Returning to work during retirement doesn’t mean failure - it can be a smart, empowering move that helps you shape your later years in a way that works for you.

Unretirement isn’t a trend that’s going away any time soon. If anything, it’s likely to become more common as we live longer, healthier lives and the lines between working and retirement continue to blur. There’s no better time to start thinking about what your future might look like, and how your finances can support it. Whether you end up fully retiring, unretiring, or doing a mix of both, having a flexible plan in place now means you’ll be ready for whatever path you choose later on.

Lee Bell is a freelance Journalist and Copywriter specialising in B2B/consumer technology, specifically AI, health and lifestyle. Sponsored by the Journalism Diversity Fund in 2009 to complete an NCTJ diploma, Lee has over 15 years of writing and editing experience. You’ll find his words in the likes of The Metro, The Sun, Men’s Fitness, Stuff Magazine and T3.

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.

This page contains information for Tailored Plan customers, born between 1978 to 1983. These customers will receive email communications indicating they’ll be switched to the Global Leaders Plan in September 2025.

Why are you updating the Tailored Plan?

As part of our mission to build pension confidence, we regularly review our plan range to ensure that their objectives continue to align with changing customer needs and expectations, as well as the regulatory landscape.

In February 2025 PensionBee launched a new accumulation default plan, Global Leaders, to allow our customers aged under 50 the opportunity to invest in growth, for longer. The plan is designed to give you greater control, clearer understanding, and better alignment with your retirement goals.

Why did you select the Global Leaders Plan as an alternative for customers under 50?

The Global Leaders Plan was developed in response to customer feedback. It aims to bring more transparency and growth opportunities to customers in their accumulation years - the years before they reach retirement. This plan is the default choice for all customers under 50 who join PensionBee and don’t pick a specific plan.

The Global Leaders Plan invests in approximately 1,000 of the world’s largest and most successful companies, spread across 48 developed and emerging market countries. It follows a customised MSCI index, built specifically for PensionBee. The plan is structured as a life fund. This means your savings will continue to have the same protection you currently benefit from under the Financial Services Compensation Scheme (FSCS), with no upper limit should BlackRock, the money manager, fail.

The plan is focused on the world’s biggest and most recognised companies - the ‘global leaders’ - giving customers the chance to be part of their success journeys. It’s a simple and easy to understand 100% equity plan, bringing complete transparency over where and how your money is invested. You’ll be able to see how the events in global markets and companies such as Apple, Microsoft, NVIDIA and Amazon influence your pension.

Additionally, PensionBee will share updates on how it votes at the company AGMs (Annual General Meetings), showing how your feedback, gathered through our annual surveys, influences decisions on important issues.

How does the new Global Leaders Plan differ from the Tailored Plan?

The younger vintages of the Tailored Plan, for those born after 1978, have the same higher risk profile as the Global Leaders Plan. In these plans, most of your money is in riskier equity-like investments.

However, two key differences between plans are:

• the number of holdings; and
• the future behaviour of the plan.

The Global Leaders Plan invests in approximately 1,000 large or mega-cap companies, which are the world’s largest by value and are worth more than $10 billion. Whereas the Tailored Plan invests in approximately 7,000 companies, of which 40-50% of those are small-cap companies, worth between $250 million to $2 billion.

The other key difference is around future behaviour of the plans. The Tailored Plan is a target date fund, which means it starts slowly moving away from equities and derisking to bonds from age 35 onwards. The Global Leaders Plan doesn’t change its risk profile over time. This means you’ll stay invested in the world’s biggest companies until you decide to switch plans later.

As you can see from the table below, the top 10 holdings for the two plans are very similar, however the weightings are slightly different.

Top 10 companies and their weights in each plan as at 31 May 2025.

How will performance compare to the Global Leaders Plan?

The starting position for the top holdings in the Tailored Plan, BlackRock LifePath 2043 - 45 and your new Global Leaders Plan are very similar. Although the weights or the percentage each company comprises in your pension, will be slightly different. This means we expect the returns to be broadly comparable in the short-to-medium term.

However, performance will be different in the longer term. The Global Leaders Plan will stay heavily invested in global equity markets and remain a higher risk 100% equity plan. This is different from the Tailored Plan which slowly starts to derisk from age 35 onwards, moving your money to more historically stable asset classes, like gilts and bonds. This asset class, also known as fixed income, seeks to reduce risk by generating regular interest payments as you approach retirement.

How do the fees compare for the Tailored Plan?

Your one simple annual management fee won’t change. The Tailored Plan costs 0.70% annually and the Global Leaders Plan will also have an annual management fee of 0.70% of your pension balance.

Additionally, if you have more than £100,000 in your pot, your fee will continue to halve on the portion above this.

What are the costs of switching?

There are usually very small subscriptions (to enter a fund) and redemption (to leave a fund) fees when moving money. Also known as anti-dilution levy they protect other investors in the fund and are an unavoidable feature of the market when moving between different funds. PensionBee doesn’t profit from these costs associated with switches.

BlackRock’s transition team has committed to minimising all costs associated with moving your funds to Global Leaders. BlackRock estimates that the cost of this switch will be around 0.12%, although it may be lower on the day. This would mean that the average cost for customers, based on an average pension pot size of £20,000 would be £24.

The annual management fee will remain unchanged at 0.70% of your pension balance.

What are the risks of switching?

Your money manager will continue to be BlackRock - the world’s largest asset manager with $11.6 trillion in assets under management as of 31 March 2025.

We’ll seek to minimise the out of market risk of this switch by working closely with the team at BlackRock to keep the majority of your funds invested throughout the switch. During this time your Beehive balance will be unavailable, but your funds will be invested throughout and therefore subject to market movements.

There’s no guarantee that the Global Leaders Plan will perform better than the Tailored Plan in the short, medium or long term. We can’t predict the future performance of any fund. However, based on feedback, we’re confident that the Global Leaders Plan better aligns with our customers’ needs and expectations.

What are my options if I don’t want to be switched to the Global Leaders Plan?

If you don’t want to be automatically switched into the Global Leaders Plan, you can switch into one of our other plans. If you want to switch plans, please log into your online account, your BeeHive. Switches take around 12 working days to complete.

Why are staging the rollout?

To ensure customers stay invested in the market throughout, we’re conducting our default transition in stages. This means we’ll move customers across to Global Leaders vintage by vintage throughout 2025, although the new plan launched in February 2025 so customers can switch into it earlier should they wish.

Our staged rollout approach promotes good outcomes for all our customers in the Tailored Plan.

Can I continue to make contributions?

All your regular and ad hoc contributions will continue to be paid into your Tailored Plan until your switch to Global Leaders begins. Once the switch begins, your BeeHive balance will be frozen until it completes.

If you have a regular contribution set up, your money will still be collected during this period. They’ll then be invested in your new plan once the switch is complete.

What if the stock market is volatile, will you still switch me?

We’re working in close partnership with BlackRock to optimise the switching process for customers. If any extreme market turbulence occurs in the run up to the plan switch date, we’d review the switch timeline, make changes to the approach and notify customers.

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.

This is part of our monthly global investment market update series. Catch up on last month’s summary here: What happened to pensions in May 2025?

Conflict in the Middle East escalated in June, leaving investors cautious about the disruption to oil supply. Brent Crude (the global benchmark price for oil worldwide) jumped from around $65 in May to over $77. This eased slightly when US President Donald Trump announced a two-week hold on military escalation with Iran. While oil markets cooled briefly, the uncertainty remained. Analysts warned that if supply were cut by just one million barrels a day, oil could trade between $75–$78. If that disruption stretched to three million barrels, it could spike to $90 or even $120, according to ING.

While most investors won’t be hoarding barrels in their garages, oil prices influence something far more familiar - inflation.

Keep reading to find out what fluctuating oil prices and inflation could mean for your pension.

What happened to stock markets?

In the UK, the FTSE 250 Index rose by almost 3% in June. This brings the 2025 performance close to +5%.

Source: Google Market Data

In Europe (excluding the UK), the EuroStoxx 50 Index fell by 1% in June. This brings the 2025 performance close to +8%.

Source: Google Market Data

In North America, the S&P 500 Index rose by 5% in June. This brings the 2025 performance close to almost +6%.

Source: Google Market Data

In Japan, the Nikkei 225 Index rose by almost 7% in June. This brings the 2025 performance close to +2%.

Source: Google Market Data

In the Asia Pacific (excluding Japan), the Hang Seng Index rose by 3% in June. This brings the 2025 performance to +20%.

Source: Google Market Data

Oil, inflation and interest rates

Rising oil prices mean higher costs for businesses and households, from transport to energy bills. This pushes up inflation, and that puts pressure on central banks.

In June, the UK’s central bank - the Bank of England - held interest rates at 4.25%, despite weaker retail sales and a rise in corporate insolvencies. Many had expected a rate cut. But persistent inflation, and fears of further oil shocks, kept policymakers cautious.

What does this mean for your pension?

June was a reminder that international politics can affect your pension, even when they feel far away. So far, the tension in the Middle East hasn’t had a major impact on UK pensions, but it’s created some uncertainty.

Rising oil prices could keep inflation higher for longer and delay interest rate cuts, both of which can affect how pension funds perform. When interest rates stay high, borrowing (like mortgages) remains more expensive, but savers may benefit from better returns on cash savings. Inflation, on the other hand, can quietly eat away at what your pension savings will be able to buy in the future. That’s why it matters, even if markets themselves seem calm.

While your pension can be impacted by geopolitical events, such as the ongoing conflict in the Middle East, just remember that it’s designed to be invested for the long term. Through diversification across sectors, regions and asset types, your pension has the opportunity to continue to grow in the long-term, even in uncertain market conditions.

This is part of our ongoing monthly investment market update series. Check out the next month’s summary here: What happened to global investment markets in July 2025?

Have a question? Get in touch!

Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.

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.

This page contains information for Tailored Plan customers, born between 1984 to 1989. These customers will receive email communications indicating they’ll be switched to the Global Leaders Plan in September 2025.

Why are you updating the Tailored Plan?

As part of our mission to build pension confidence, we regularly review our plan range to ensure that their objectives continue to align with changing customer needs and expectations, as well as the regulatory landscape.

In February 2025 PensionBee launched a new accumulation default plan, Global Leaders, to allow our customers aged under 50 the opportunity to invest in growth, for longer. The plan is designed to give you greater control, clearer understanding, and better alignment with your retirement goals.

Why did you select the Global Leaders Plan as an alternative for customers under 50?

The Global Leaders Plan was developed in response to customer feedback. It aims to bring more transparency and growth opportunities to customers in their accumulation years - the years before they reach retirement. This plan is the default choice for all customers under 50 who join PensionBee and don’t pick a specific plan.

The Global Leaders Plan invests in approximately 1,000 of the world’s largest and most successful companies, spread across 48 developed and emerging market countries. It follows a customised MSCI index, built specifically for PensionBee. The plan is structured as a life fund. This means your savings will continue to have the same protection you currently benefit from under the Financial Services Compensation Scheme (FSCS), with no upper limit should BlackRock, the money manager, fail.

The plan is focused on the world’s biggest and most recognised companies - the ‘global leaders’ - giving customers the chance to be part of their success journeys. It’s a simple and easy to understand 100% equity plan, bringing complete transparency over where and how your money is invested. You’ll be able to see how the events in global markets and companies such as Apple, Microsoft, NVIDIA and Amazon influence your pension.

Additionally, PensionBee will share updates on how it votes at the company AGMs (Annual General Meetings), showing how your feedback, gathered through our annual surveys, influences decisions on important issues.

How does the new Global Leaders Plan differ from the Tailored Plan?

The younger vintages of the Tailored Plan, for those born after 1978, have the same higher risk profile as the Global Leaders Plan. In these plans, most of your money is in riskier equity-like investments.

However, two key differences between plans are:

• the number of holdings; and
• the future behaviour of the plan.

The Global Leaders Plan invests in approximately 1,000 large or mega-cap companies, which are the world’s largest by value and are worth more than $10 billion. Whereas the Tailored Plan invests in approximately 7,000 companies, of which 40-50% of those are small-cap companies, worth between $250 million to $2 billion.

The other key difference is around future behaviour of the plans. The Tailored Plan is a target date fund, which means it starts slowly moving away from equities and derisking to bonds from age 35 onwards. The Global Leaders Plan doesn’t change its risk profile over time. This means you’ll stay invested in the world’s biggest companies until you decide to switch plans later.

As you can see from the table below, the top 10 holdings for the two plans are very similar, however the weightings are slightly different.

Top 10 companies and their weights in each plan as at 31 May 2025.

How will performance compare to the Global Leaders Plan?

The starting position for the top holdings in the Tailored Plan, BlackRock LifePath 2049 - 51 and your new Global Leaders Plan are very similar. Although the weights or the percentage each company comprises in your pension, will be slightly different. This means we expect the returns to be broadly comparable in the short-to-medium term.

However, performance will be different in the longer term. The Global Leaders Plan will stay heavily invested in global equity markets and remain a higher risk 100% equity plan. This is different from the Tailored Plan which slowly starts to derisk from age 35 onwards, moving your money to more historically stable asset classes, like gilts and bonds. This asset class, also known as fixed income, seeks to reduce risk by generating regular interest payments as you approach retirement.

How do the fees compare for the Tailored Plan?

Your one simple annual management fee won’t change. The Tailored Plan costs 0.70% annually and the Global Leaders Plan will also have an annual management fee of 0.70% of your pension balance.

Additionally, if you have more than £100,000 in your pot, your fee will continue to halve on the portion above this.

What are the costs of switching?

There are usually very small subscriptions (to enter a fund) and redemption (to leave a fund) fees when moving money. Also known as anti-dilution levy they protect other investors in the fund and are an unavoidable feature of the market when moving between different funds. PensionBee doesn’t profit from these costs associated with switches.

BlackRock’s transition team has committed to minimising all costs associated with moving your funds to Global Leaders. BlackRock estimates that the cost of this switch will be around 0.12%, although it may be lower on the day. This would mean that the average cost for customers, based on an average pension pot size of £20,000 would be £24.

The annual management fee will remain unchanged at 0.70% of your pension balance.

What are the risks of switching?

Your money manager will continue to be BlackRock - the world’s largest asset manager with $11.6 trillion in assets under management as of 31 March 2025.

We’ll seek to minimise the out of market risk of this switch by working closely with the team at BlackRock to keep the majority of your funds invested throughout the switch. During this time your Beehive balance will be unavailable, but your funds will be invested throughout and therefore subject to market movements.

There’s no guarantee that the Global Leaders Plan will perform better than the Tailored Plan in the short, medium or long term. We can’t predict the future performance of any fund. However, based on feedback, we’re confident that the Global Leaders Plan better aligns with our customers’ needs and expectations.

What are my options if I don’t want to be switched to the Global Leaders Plan?

If you don’t want to be automatically switched into the Global Leaders Plan, you can switch into one of our other plans. If you want to switch plans, please log into your online account, your BeeHive. Switches take around 12 working days to complete.

Why are staging the rollout?

To ensure customers stay invested in the market throughout, we’re conducting our default transition in stages. This means we’ll move customers across to Global Leaders vintage by vintage throughout 2025, although the new plan launched in February 2025 so customers can switch into it earlier should they wish.

Our staged rollout approach promotes good outcomes for all our customers in the Tailored Plan.

Can I continue to make contributions?

All your regular and ad hoc contributions will continue to be paid into your Tailored Plan until your switch to Global Leaders begins. Once the switch begins, your BeeHive balance will be frozen until it completes. If you have a regular contribution set up, your money will still be collected during this period. They’ll then be invested in your new plan once the switch is complete.

What if the stock market is volatile, will you still switch me?

We’re working in close partnership with BlackRock to optimise the switching process for customers. If any extreme market turbulence occurs in the run up to the plan switch date, we’d review the switch timeline, make changes to the approach and notify customers.

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.

This page contains information for Tailored Plan customers, born in 1990 or later. These customers will receive email communications indicating they’ll be switched to the Global Leaders Plan in September 2025.

Why are you updating the Tailored Plan?

As part of our mission to build pension confidence, we regularly review our plan range to ensure that their objectives continue to align with changing customer needs and expectations, as well as the regulatory landscape.

In February 2025 PensionBee launched a new accumulation default plan, Global Leaders, to allow our customers aged under 50 the opportunity to invest in growth, for longer. The plan is designed to give you greater control, clearer understanding, and better alignment with your retirement goals.

Why did you select the Global Leaders Plan as an alternative for customers under 50?

The Global Leaders Plan was developed in response to customer feedback. It aims to bring more transparency and growth opportunities to customers in their accumulation years - the years before they reach retirement. This plan is the default choice for all customers under 50 who join PensionBee and don’t pick a specific plan.

The Global Leaders Plan invests in approximately 1,000 of the world’s largest and most successful companies, spread across 48 developed and emerging market countries. It follows a customised MSCI index, built specifically for PensionBee. The plan is structured as a life fund. This means your savings will continue to have the same protection you currently benefit from under the Financial Services Compensation Scheme (FSCS), with no upper limit should BlackRock, the money manager, fail.

The plan is focused on the world’s biggest and most recognised companies - the ‘global leaders’ - giving customers the chance to be part of their success journeys. It’s a simple and easy to understand 100% equity plan, bringing complete transparency over where and how your money is invested. You’ll be able to see how the events in global markets and companies such as Apple, Microsoft, NVIDIA and Amazon influence your pension.

Additionally, PensionBee will share updates on how it votes at the company AGMs (Annual General Meetings), showing how your feedback, gathered through our annual surveys, influences decisions on important issues.

How does the new Global Leaders Plan differ from the Tailored Plan?

The younger vintages of the Tailored Plan, for those born after 1978, have the same higher risk profile as the Global Leaders Plan. In these plans, most of your money is in riskier equity-like investments.

However, two key differences between plans are:

• the number of holdings; and
• the future behaviour of the plan.

The Global Leaders Plan invests in approximately 1,000 large or mega-cap companies, which are the world’s largest by value and are worth more than $10 billion. Whereas the Tailored Plan invests in approximately 7,000 companies, of which 40-50% of those are small-cap companies, worth between $250 million to $2 billion.

The other key difference is around future behaviour of the plans. The Tailored Plan is a target date fund, which means it starts slowly moving away from equities and derisking to bonds from age 35 onwards. The Global Leaders Plan doesn’t change its risk profile over time. This means you’ll stay invested in the world’s biggest companies until you decide to switch plans later.

As you can see from the table below, the top 10 holdings for the two plans are very similar, however the weightings are slightly different.

Top 10 companies and their weights in each plan as at 31 May 2025.

How will performance compare to the Global Leaders Plan?

The starting position for the top holdings in the Tailored Plan, BlackRock LifePath 2061 - 63 and your new Global Leaders Plan are similar. Although the weights or the percentage each company comprises in your pension, will be slightly different. This means we expect the returns to be broadly comparable in the short-to-medium term.

However, performance will be different in the longer term. The Global Leaders Plan will stay heavily invested in global equity markets and remain a higher risk 100% equity plan. This is different from the Tailored Plan which slowly starts to derisk from age 35 onwards, moving your money to more historically stable asset classes, like gilts and bonds. This asset class, also known as fixed income, seeks to reduce risk by generating regular interest payments as you approach retirement.

How do the fees compare for the Tailored Plan?

Your one simple annual management fee won’t change. The Tailored Plan costs 0.70% annually and the Global Leaders Plan will also have an annual management fee of 0.70% of your pension balance.

Additionally, if you have more than £100,000 in your pot, your fee will continue to halve on the portion above this.

What are the costs of switching?

There are usually very small subscriptions (to enter a fund) and redemption (to leave a fund) fees when moving money. Also known as anti-dilution levy they protect other investors in the fund and are an unavoidable feature of the market when moving between different funds. PensionBee doesn’t profit from these costs associated with switches.

BlackRock’s transition team has committed to minimising all costs associated with moving your funds to Global Leaders. BlackRock estimates that the cost of this switch will be around 0.12%, although it may be lower on the day. This would mean that the average cost for customers, based on an average pension pot size of £20,000 would be £24.

The annual management fee will remain unchanged at 0.70% of your pension balance.

What are the risks of switching?

Your money manager will continue to beBlackRock - the world’s largest asset manager with $11.6 trillion in assets under management as of 31 March 2025.

We’ll seek to minimise the out of market risk of this switch by working closely with the team at BlackRock to keep the majority of your funds invested throughout the switch. During this time your Beehive balance will be unavailable, but your funds will be invested throughout and therefore subject to market movements.

In addition, there’s no guarantee that the Global Leaders Plan will perform better than the Tailored Plan in the short, medium or long term. We can’t predict the future performance of any fund. However, based on feedback, we’re confident that the Global Leaders Plan better aligns with our customers’ needs and expectations.

What are my options if I don’t want to be switched to the Global Leaders Plan?

If you don’t want to be automatically switched into the Global Leaders Plan, you can switch into one of our other plans. If you want to switch plans, please log into your online account, your BeeHive. Switches take around 12 working days to complete.

Why are staging the rollout?

To ensure customers stay invested in the market throughout, we’re conducting our default transition in stages. This means we’ll move customers across to Global Leaders vintage by vintage throughout 2025, although the new plan launched in February 2025 so customers can switch into it earlier should they wish.

Our staged rollout approach promotes good outcomes for all our customers in the Tailored Plan.

Can I continue to make contributions?

All your regular and ad hoc contributions will continue to be paid into your Tailored Plan until your switch to Global Leaders begins. Once the switch begins, your BeeHive balance will be frozen until it completes.

If you have a regular contribution set up, your money will still be collected during this period. They’ll then be invested in your new plan once the switch is complete.

What if the stock market is volatile, will you still switch me?

We’re working in close partnership with BlackRock to optimise the switching process for customers. If any extreme market turbulence occurs in the run up to the plan switch date, we’d review the switch timeline, make changes to the approach and notify customers.

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.

Market volatility is a normal part of investing, but how you respond to it matters most.

When markets drop sharply, you may react emotionally and feel you need to take action or sell your investments quickly. This ‘panic selling’ is usually driven by fear and following the herd mentality rather than independent analysis. Letting short-term movements in the market derail your investment strategy means you could end up selling at a loss without opportunity for recovery.

Staying calm is not always easy, especially when you see your pension balance fall. Still, remaining patient during market dips can give your investments time to recover.

In fact, downturns can be seen as opportunities to buy at lower prices. If you’re investing for the long term, especially in a pension, it’s important to stay focused on your goals. Continuing to make contributions through a market downturn can be beneficial for your pension.

Please note that all figures and data presented in this blog are for educational purposes only and should not be considered financial advice. PensionBee is not liable for any personal investment decisions made based on this content.

Why staying invested matters, even in volatile markets

During uncertain times, continuing your regular pension contributions can work in your favour. Regular contributions help smooth out short-term volatility and improve long-term growth. Here are four reasons to make regular contributions to help you stay on track with your saving goals.

1. Pound cost averaging works in your favour

‘Pound cost averaging’ is an investment strategy where you contribute a fixed amount regularly over time, rather than making a single lump sum contribution. It’s commonly used in long-term investments like pension funds.

This approach helps smooth out the impact of market fluctuations. When prices are low, your fixed contributions buy more units in a fund. When prices are high, it buys fewer. Over time, this results in a lower average cost per unit.

Below is an illustration of the concept of pound cost averaging over 12 months.

For example, if you invest £1,000 each month, your purchases will vary based on the unit price, so:

• in the first month, with a unit price of £1, you buy 1,000 units;
• in the second month, when the unit price rises to £1.20, you buy 833 units; and
• in the third month, with a unit price of £1.30, you buy 769 units.

This continues over the months. By the time of your last contribution, with the total contribution of £12,000, you’ll have accumulated around 7,900 units, with an average cost per unit of around £1.52.

In contrast, making one lump sum payment of £12,000 when the unit price is higher, say in month nine at £2.20, you’d only buy around 5,454 units.

Therefore, pound cost averaging means that when the market is doing well, unit prices go up, making it more expensive to buy. When the market is doing poorly, unit prices go down, making it cheaper. By contributing regularly, you can average out the cost of buying more units over time.

2. Market downturns are a good investment opportunity

It can seem counterintuitive to continue contributing when you see markets in decline. Or when you see your balance go down immediately after making a contribution. However, a common mistake that many investors make is stopping contributions altogether. Continuing to make regular contributions can help smooth out your investment over time. By purchasing units at lower prices during market downturns, you can buy more units for less money. This ultimately benefits your long-term investment strategy.

Historically, markets have always recovered from volatility. Your consistent contributions during market downturns can be beneficial over the long term when the market eventually recovers. So if you stop making contributions, you may hinder the long-term growth of your pension pot as you miss out on buying opportunities. We published a blog that explains the cost of missing the best trading days in the markets.

3. Takes emotion out and keeps you invested

Market volatility can trigger emotional reactions, which could lead to rushed decisions without proper analysis. For example, panic selling or delaying contributions in an attempt to time the market.

One effective way to stay on track is by setting up regular contributions. Automating your contributions can remove the emotion, helping you remain patient and disciplined during market volatility. This consistent investment approach will help you stay on track towards your retirement goals.

4. Keeps you on track with long-term goals

Pound cost averaging and leveraging market dips as buying opportunities can help reduce volatility in your pension investments. It’s also important to remember that pension investing is a long-term journey. The key to navigating these periods of volatility is to stay focused on your goal and committed to your investment strategy.

The sooner you start contributing and the longer you can stay invested, the greater your potential for positive returns, regardless of short-term market fluctuations.

Market resilience over the long term for pension investors

The graph above illustrates the historical performance of the MSCI World Index from January 1999 to May 2025. The MSCI World Index is a widely followed global stock market index. It tracks the performance of approximately 1,500 large and mid-cap companies across 23 developed countries.

Overall, the graph shows an upward trend with short-term volatility at various points. Over the past 25 years, the market has experienced numerous significant events. This includes the Dotcom bubble in 2000, the global financial crisis in 2008, Brexit in 2016, and the COVID-19 shock in 2020. More recently, geopolitical events, including shifts in US policies and conflicts in the Middle East are creating uncertainty.

And yet, through it all, one thing remains clear: the market has shown remarkable resilience. Through numerous cycles, it’s bounced back from downturns, often emerging even stronger.

For long-term investors, especially those investing in a pension, this historical perspective is important. It’s a valuable reminder that short-term volatility is a natural and inevitable part of investing. But staying the course has consistently delivered strong results over time.

Have a question? Get in touch!

Do you want to know more about your pension plan with PensionBee? Learn more about the top 10 holdings in your pension fund on our blog, which is regularly updated. You can also look at our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.

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.

This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing as at Q1 2025.

The second quarter of 2025 was another rollercoaster for investors. It began with a sharp market selloff on 2 April after US President Trump announced ‘Liberation Day’ tariffs, sparking global trade panic. By quarter end, however, investors’ confidence returned, pushing the value of US equities (company shares) to new highs.

In early April, the US tariff announcement raised trade war fears, leading to declines in equity and bond markets, including the S&P 500 (an index that tracks the performance of 500 of the largest public companies in the US) while 10-year government bonds in the US and UK rose. To ease tensions, the US announced a 90 day pause on tariffs and reached early agreements with about 60 countries, excluding China.

The market began recovering in May after the US and China agreed to reduce tariffs following trade talks in Geneva. While rate cut hopes persisted, bond markets shifted focus to long-term US debt concerns, keeping yields high.

June brought further geopolitical shocks. Israel bombed Iranian cities over nuclear threats, followed by US strikes on Iran’s key nuclear sites. Oil and gold prices surged on fears of Iran’s retaliation, such as closing the Strait of Hormuz. Instead, Iran fired missiles at a US military base in Qatar, which were all intercepted. This eased investors’ fears of escalation, lifting US stocks and stabilising oil prices.

PensionBee plans’ Q2 25 performance is detailed below. For updates on global markets in June, see our latest blog.

The performance data covers 1 April to 30 June 2025 and is sourced from our money managers or factsheets. All figures are before fees (except for Global Leaders and Tailored Plan) and past performance is not a guarantee of future performance.

PensionBee’s default plans

4Plus Plan

The 4Plus Plan is managed by State Street with an equity proportion of 52.1%^. It’s the default plan for our customers over 50 years of age. The plan is actively managed for volatility management in times of market turbulence, whilst targeting a 4% above cash over a minimum five-year period.

^Equity % at 30 June 2025, asset allocation changes on a weekly basis due to the plan’s actively managed component.

Global Leaders Plan

The Global Leaders Plan is managed by BlackRock with an equity proportion of 100%. It’s the default plan for our customers aged under 50. The plan invests in around 1,000 top public companies globally. It aims to maximise the growth of your pension savings in the years before retirement.

^ The plan was launched in February 2025, so performance data for the 3-year and 5-year periods is currently unavailable.

Tailored Plan

The Tailored Plan is managed by BlackRock. Please note that the 2037-2039 vintage was closed down during the second quarter as part of the default plan transition to the Global Leaders Plan.

PensionBee’s sustainable plans

Climate Plan

The Climate Plan is managed by State Street with an equity proportion of 100%.

^ The new Paris-aligned strategy was launched in September 2024, so performance data for the 3-year and 5-year periods is currently unavailable.

Shariah Plan

The Shariah Plan is managed by HSBC and traded by State Street with an equity proportion of 100%. The plan invests in the 100 largest stocks traded globally that comply with Shariah investment guidelines.

PensionBee’s other plans

Tracker Plan

The Tracker Plan is managed by State Street with an equity proportion of 80%. The remaining 20% is allocated to fixed income.

Pre-Annuity Plan

The Pre-Annuity Plan is managed by State Street with a fixed income proportion of 100%. The plan invests in bonds to provide you with returns that broadly correspond with the cost of purchasing an annuity.

Preserve Plan

The Preserve Plan is a money market fund managed by State Street. The plan makes short-term investments in high-creditworthiness companies to preserve your money.

Learn more about how your pension is invested

Your pension is invested in a range of assets like equities, bonds, property and cash, and your pension balance depends on how these assets perform. See below for a summary of their performance in Q2 2025.

How did global stock markets perform in Q2 2025?

Global stock markets have shown a strong rebound despite ongoing global conflicts and uncertainty, particularly in Asian markets like China, Taiwan, South Korea and India, which saw significant gains in Q2. The MSCI Asia ex-Japan Index (an index that tracks the performance of large and mid-size public companies across Asia, excluding Japan) returned 12.7%. Information Technology and Communications led gains as trade fears eased and sentiment toward AI and tech stocks improved. This outperformance relative to the US was largely driven by a weakening US dollar, which boosted local currency returns in USD terms.

The US market also advanced in Q2, recovering from April’s volatility. The S&P 500 surged 10.9%, which showed a strong rebound in the quarter(Q1: -4.6%). Investor sentiment improved on the back of steady employment figures and a lower-than-expected Consumer Price Index (CPI) inflation reading in May, down from April.

In contrast, European and UK markets posted modest gains following a strong Q1. The MSCI Europe ex-UK index (an index that tracks the performance of large and mid-size public companies in Europe, excluding the UK) rose 3.7%, and the FTSE 100 (an index that tracks the performance of 100 largest UK public companies) gained 3.2%. This modest performance compared to other regions stemmed from sector allocation, as growth stocks like tech and communications outpaced value stocks like financials, energy, and consumer goods. The latter are areas where Europe and the UK are more concentrated. Ongoing US trade policy uncertainty also weighed on sentiment. However, the industrial sector, particularly defence stocks, saw strong growth after NATO countries pledged to raise defence spending to 5% of their GDP by 2035.

*Please note that the performance figures above are reported in local currencies, except for the MSCI Asia ex-Japan, which is reported in USD due to the use of multiple currencies among its constituents.

Overall, the global stock market showed a resilient performance in Q2 compared to the previous quarter, reflecting a strong rebound in investor confidence. This recovery was supported by the initial shock of the US Liberation Day tariffs in April and settled by a subsequent 90-day pause, along with at least a temporary resolution in geopolitical tensions and trade policies.

^ All figures are presented in local currencies, except for MSCI Asia ex-Japan, which is reported in USD.

How did UK bond markets perform in Q2 2025?

The US Liberation Day tariffs led to a global bond selloff as investors expected rising US inflation from higher import costs, causing volatility in both the US and UK markets.

Despite mid-quarter volatility, UK government (gilts) and corporate bonds stabilised and delivered modest gains by quarter-end. This was supported by the latest monthly data showing that the UK CPI (3.4%) is broadly in line with the Bank of England (BoE)’s anticipation of an increase in inflation (3.7%) due to higher energy prices. Therefore, the BoE decided to keep its interest rate at 4.25% during its meeting in June 2025, after starting to cut rates in April.

Source: MSCI and Bloomberg

UK government bonds (gilt) yields and Bank of England (BoE) interest rates

Generally, short-term UK gilt yields are closely linked to the BoE base rate changes. These yields closely reflect current monetary policy and expectations for near-term rate change. Whereas long-term gilt yields, like 10-year gilts, are also affected by BoE rate changes, but are influenced by other factors, including inflation rates, fiscal policy and global economic trends.

The following graph illustrates their relationships. In 2025, when the BoE cut its base rate from 5% to 4.25%, the 10-year gilt yield remained elevated, whereas the 3-year gilt yields broadly followed the changes in rate cuts.

For the rest of 2025, long-term gilt yields are expected to be shaped by BoE monetary policy decisions, fiscal measures like the Autumn Budget, and international trade development with the US, while short-term yields are likely to align with changes in the base rates.

Have a question? Get in touch!

Do you want to know more about your pension plan with PensionBee? Learn more about the top 10 holdings in your pension fund on our blog, which is regularly updated. You can also look at our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.

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 invested. This information should not be regarded as financial advice.

Financial planning may not top the list of fun couple activities. And when you add another person’s financial personality into the mix, it can get even more complicated.

But getting your finances in sync as a couple can be a real game-changer. Building a strong financial foundation together not only reduces stress, but it can also strengthen your relationship. So, what’s the best way to approach money as a team? Here are some practical tips to help couples navigate their finances with confidence.

The cost of avoiding the money talk

Finances can put a strain on anyone - and relationships are no different. Research from ClearScore found 23% of couples only speak to their partner about money four times a year - and 20% say they wish it was more often. While financial conservations can make some feel vulnerable, it’s essential in building a solid financial future together.

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Start with financial self-awareness

Financial transparency is a key pillar to any relationship. Couples who share financial planning are thought to have higher levels of satisfaction in their relationship. But before you get honest with your partner, it’s essential that you’re honest with yourself.

Start by understanding how much you’re spending and where. This could include how much income you’re bringing in, your pension contributions, any debts and general financial health. This will enable you to come to the conversation with confidence and transparency. Invite your partner to do the same before you sit down to talk.

Not everyone’s perfect - and neither are financial situations. Remember to show each other respect and empathy when discussing your personal finances. Once you’ve created a space to chat openly, it can become clearer to discuss long-term finances, like your retirement savings, together.

3 steps to take control of your retirement savings as a couple

Money can be a tricky subject to bring up - it can bring on all sorts of emotions from guilt and shame to awakening. But ultimately there’s no one right path because everyone’s circumstances and relationship with money is different. Figuring out how to plan longer-term finances, like your retirement savings, as a couple can feel like an even bigger task. But it doesn’t have to be. Here are three ways you can feel more confident about your future savings.

1. Find out where your pensions are

First things first, do you know whether you’re currently saving into a pension? If you aren’t sure but you’re employed full-time, ask your HR department. You’re likely enrolled in a workplace scheme - provided you’re eligible. Self-employed? You’ll need to set one up yourself. PensionBee offers a self-employed pension plan which allows you to contribute flexibly, whatever your income. And don’t forget about any previous jobs you’ve had where you may’ve been paying into a workplace pension. You may have a couple of pension pots that you can consider combining together into one plan.

When you find your pension(s), or start setting one up, make sure you understand:

• what type of pension you have (whether defined contribution or defined benefit);
• who your pension provider is;
• what fund you’re investing in;
• what the risk level is; and
• whether it aligns with your values.

2. Think about your retirement goals

Now you know where your retirement savings are, it’s time to think about how far you want them to go. PensionBee’s Pension Calculator shows you how long your pension could last and how adjusting contributions can help you reach your goal. Depending on your age, income and desired retirement income, you may want to consider increasing your contributions. Even a small boost now can make a significant difference over the long term thanks to free tax relief from the government, potential investment growth and compound interest.

If you find it tricky to think of an end goal when it comes to retirement, the Pensions UK can help. Their Retirement Living Standards show retirement lifestyles at three different income levels - minimum, moderate and comfortable. The table below shows the annual retirement income needed per couple (2025/26) plus examples of the sort of lifestyle you could have.

3. Consider your future plans

If you and your partner have plans to expand your family, your pension might be the last thing on your mind. But while having children is a major lifestyle adjustment, it’s also a financial one. And that includes your pension and other long-term finances.

If one of you is taking time off for parental leave, it’s a good idea to continue contributing to your pension if you can. If you’re in a workplace scheme (and it’s a defined contribution pension), this will ensure your employer continues to contribute too. If you feel unable to keep up with the contributions yourself, your partner can do this on your behalf. This is a great way of preventing any pension gaps for the caregiving partner. Ultimately, it allows you both to build towards your retirement goals, sharing the family responsibilities. Plus it future-proofs your finances. Ensuring you keep building up your own pension savings means you’ll have some financial security should your familial or relationship status change in the future.

Building a secure financial future together

Future-proofing your pension with your partner isn’t just about making a sound financial decision - it’s about building the life you want together. With open communication, financial transparency and supporting each other through major life decisions, together you can build the life you want. Here’s a recap:

• Get on top of your individual pension savings - make sure you both know where and how your pension is invested. And if you have any lost pots, track them down and consider combining and managing your retirement savings into one easy-to-manage plan.
• Initiate open conversations - schedule regular ‘money dates’ to discuss your progress towards both your short-term and long-term financial goals.
• Set shared retirement goals - define what a fulfilling retirement looks like for both of you and use the Retirement Living Standards to help you visualise the lifestyle you could achieve at different income levels.
• Ensure equitable contributions - discuss and plan for balanced pension contributions, considering income disparities, career breaks and parental leave.
• Utilise available resources - take advantage of free tools like PensionBee’s Pension Calculator to assess and plan for retirement needs.

Uneesa Zaman is the Founder of Ayda Invest, a platform helping Muslim women grow their financial confidence through ethical, faith-aligned investing. With a background in financial communications, she’s passionate about making money matters more inclusive and empowering.

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.

The following is a transcript of a bonus podcast episode of The Pension Confident Podcast. Listen to the episode or scroll on to read the conversation.

PHILIPPA: Hi, welcome back. For this special bonus episode, we’re looking at how automation can help you manage your personal finances. Standing orders, calendar reminders and of course apps - they can all save us time and make sure we keep our payments and our savings on track. So what might work best for you?

I’m Philippa Lamb - if you haven’t subscribed yet why not click right now and never miss an episode? And before we get going, here’s the usual disclaimer: please remember that anything discussed on this podcast shouldn’t be regarded as financial advice or legal advice. When investing, your capital is at risk.

1. Establishing good financial habits

PHILIPPA: So, automating your finances, and first up, here’s Financial Advisor and Author, Bola Sol, from episode 37, talking about how automation is great if you’re keen to establish good financial habits.

BOLA: Wherever you can automate money and contributions to your pension. Yeah, I’d say that’s key. And potentially, if you can add more in manually yourself, maybe set quarterly reminders on top of the automation, that way you have two different sets of reminders. One that’s happening automatically and one where you can say, “oh, I wonder, do I have a bit more money at the moment to put in?”.

PHILIPPA: I do that. Calendar reminders, that simple. It’s a nice idea, isn’t it? Set them for weekends, though, because if you set them in the week, you don’t do it. I speak from experience here because life gets busy. And then before you know it you’ve forgotten about that calendar reminder.

2. Sharing expenses

PHILIPPA: Automation can also take some of the awkwardness out of sharing expenses with loved ones too. Here’s Brooke Day, Head of Brand and Communications at PensionBee, back in episode 27.

BROOKE: So whenever I’ve gone on big group trips, we’ll use an app called Splitwise, and I’m sure there’s many others.

PHILIPPA: Oh, yeah.

BROOKE: And so then it takes away the awkwardness of, I guess sometimes you feel like if you’re owed £10 by the end, you don’t really want to ask for it. When everyone’s putting all of the different expenses on there and who bought things or shared things with, it rounds it all up and at the end, it splits it. So everyone gets what they put in. So some of my friends will like to go away with no cash, but they know, “oh, it’ll all be figured out towards the end”. Whereas I think I’m a bit more like, I like to know what I’m going with. But then equally, I’m going to get some back later on. So win-win from the situation.

3. Automation and credit scores

PHILIPPA: In episode 31 we chatted about credit scores and how vital it is to understand how your financial behaviour can impact your score. Here’s Financial Content Creator and Author, Clare Seal, remembering how automation helped her keep her finances stable at a really busy time in her life.

CLARE: It’s a really good idea to check your report if you notice a sudden change in your score. And this is why I check it every month. So I’ve got a 15-month-old daughter, and when she was born last year, fell over when a repayment was due on a small loan that I took out when we moved house a couple of years ago. And on the day that my daughter was born, I hadn’t done that.

PHILIPPA: You had your hands full though, didn’t you?

CLARE: I did, and my loan payment bounced.

PHILIPPA: OK.

CLARE: The next day, I phoned up and made it manually, but -

PHILIPPA: The next day, after you’d had your daughter?

CLARE: I did, yeah.

PHILIPPA: It’s impressive, isn’t it?

JOHN: That’s keeping control of your finances.

CLARE: She was - Well, this is, this is because I have everything set up to notify me on my phone, you see?

PHILIPPA: Understood.

CLARE: Also, she’s my third. So it was very much - It was par for the course.

PHILIPPA: No problem.

CLARE: But in the window between when the payment bounced and when it was made, the monthly submission of information to the credit reference agencies had happened.

PHILIPPA: OK.

CLARE: And it’d been recorded as a missed payment. And so I noticed then, a couple of months down the line, that my credit score had tanked, even though -

PHILIPPA: Really tanked? Just over that?

CLARE: Really tanked. But because I noticed that, I called my loan provider. They said, “Oh, this is what’s happened. I’ll put a note on your file. If you contact all the credit reference agencies with a query, we can let them know”. And so I did that. I submitted a form on each of the three. It took -

PHILIPPA: Fiddly?

CLARE: It was fiddly but it took 45 minutes, and it meant that that information was wiped from my files.

4. Boosting your credit score

PHILIPPA: And from that same conversation, here’s a credit score expert - John Webb, Consumer Affairs Manager at one of the big credit score providers, Experian. In this clip, he’s talking about how you can use automation to help boost your score.

JOHN: There’s loads of ways to do it. But actually, the first thing I’ll say is be patient. These things don’t happen immediately. If you’re renting, you can share your rent payments with Experian, so you can add that information to your credit report as well. That will help if you’re making your rent payments on time regularly. We also have something called Experian Boost, where if you’re paying for certain things like digital subscriptions, Amazon, Netflix, Spotify, if you’re paying for your Council Tax regularly, if you’re paying into any savings regularly, you can get that information included in your credit score.

PHILIPPA: How do you do that?

JOHN: So it’s open banking. So you connect your bank account securely. We only scan for those transactions, so things like Amazon Prime, for example.

PHILIPPA: OK.

JOHN: And then you can boost your score by up to 101 points. That’s really great. If you’re looking for credit, your score is not particularly great, and it can unlock other lenders and other deals that are there. But the process of, you know kind of, building it up over time, making it look a bit better, is fundamentally, make your payments on time and try not to get into too much debt. So your outstanding borrowing will have a big impact on that. And if that’s why your score is low, work on a plan to bring it down over time.

5. Stress-free retirement planning

PHILIPPA: Now, onto pensions. Here’s Financial Journalist, Faith Archer, from episode 32 explaining how automation can take the stress out of retirement planning - especially if you work for yourself and you don’t have an employer doing the heavy lifting for you.

FAITH: I’m a big fan of pensions and I do pay a lot into mine.

TIM: But are you behaving optimally? Are you just behaving in a reasonable way, in a way that you think is making a really informed decision that you’re not going to regret? Or are you worried about making the pure, optimum decision? Because I think if you sit there trying to work out the exact right answer for yourself, you might be sat there a long time. So, I like to take the pressure off and think about it.

FAITH: I think the bit I worried about was choosing which pension because I’m self-employed, so I don’t have a boss to choose a pension for me. I think there are a lot of self-employed people that I’ve talked to, and it’s that decision about which pension company should I go with.

PHILIPPA: Yeah, I’m in the same boat. It’s all you, isn’t it? If you make a bad choice, it’s your fault.

FAITH: That can set up a huge hurdle to actually make your choice in owning a pension. But I think once you’ve opened it, once you’ve made that decision, then it’s much, much easier to pay money in. You can also use those things too, I call it “saving despite yourself”. If you set up a Direct Debit so that the money goes into your pension every month, you might be really surprised at how quickly that money adds up.

6. Financial personalities

PHILIPPA: We all have our individual financial personality and that can play into how we manage our money. Here’s Emma Maslin, Financial Coach and Founder of The Money Whisperer, chatting to Rotimi Merriman-Johnson, Founder of Mr MoneyJar about how important it is to understand what’s going on in our subconscious and how we can help ourselves make good financial decisions.

EMMA: There’s so much shame around money. Quite often because we see how other people are doing things and we feel that we should. There’s so much ‘should’ in the personal finance space. “You should do this, you should do that, I should be like that person”. No, you are you, you’re navigating life through your lens and your lens is a product of your education, your experiences when you were young. Knowing that’s so important because it really helps you lift a lot of that shame. Say, “if I can understand who I am, I can best navigate my circumstances in a way that feels good to me”. And a lot of the work I do is actually around the nervous system because when we feel outta whack, when we’re pushed outside of our window of tolerance, we might go into fight or flight mode.

Actually, we become somebody whose brain is operating from our subconscious. It’s not the rational part of our brain, which can say, “I should save, a pension’s a good product, my budget is my saviour”. All of that goes out the window when we’re operating from our animal instincts. What drives the animal instincts is those scripts that were developed when we were young to the extent that they’re maladaptive, to the extent that they’re saying something like, “money is secretive or only greedy people can be rich”. If you have that as your loop that’s running in your brain, you’re not going to become an investor. Actually, we need to learn how to regulate our nervous systems, which is really difficult in modern day life, so that we can make practical decisions from a rational standpoint rather than being emotionally driven.

ROTIMI: The way that I’ve been able to get over the nervous system point’s automation. When it comes to saving, just set up that standing order to your separate savings account and let it run.

PHILIPPA: It’s not a decision, it just happens?

ROTIMI: It just happens using budgeting software which automatically categorises your spending. You just need to review and check it. I do that every week. I like relying on tools and things outside of me, systems that can help me make good decisions.

PHILIPPA: Interesting isn’t it? And easy to do. If you’d like to find out a bit more about automation and personal finance, head to the PensionBee website for blogs, videos and explainers.

You can listen back to all the episodes we’ve highlighted today in full wherever you get your podcasts - just look out for episodes 13, 27, 31, 32 and 37. We’re on YouTube and in the PensionBee app too and while you’re subscribing you could even give us a rating and a review! It’s really quick to do.

Just a last reminder before we go that anything discussed on the podcast shouldn’t be regarded as financial advice or legal advice. When investing, your capital is at risk.

Thanks for listening.

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.