5 ways pensions should change to fit the modern world

Most parts of our lives have been revolutionised by technology and customer-first approaches, but sometimes it feels like the pensions industry has some catching up to do. Here are five features we think future-fit pensions should have.

Usable online account

Many providers offer online pension dashboards, but does anybody actually use them? Onerous log-in processes, poor design and limited online functionality add up to a pension portal that’s yet another never-clicked-on bookmark (if it makes it to bookmark status at all…)

Wouldn’t it be nice to have a pension portal that’s beautifully designed and easy to use? It would display your current pot size and your projected retirement income, and let you make payments or set up regular contributions with a few clicks. After all, it does make sense to check your retirement savings from time-to-time, so that you can see if you’re on track, and make adjustments if you need to. With PensionBee you can manage your pension in an online account to do just that, and use our app to access your real time pension balance.

Manage your pension with ease. Get started.

A pension in one place

If you’ve had several different jobs (and people now have an average of 11 during their careers) then you probably have several different pension pots, which makes it pretty tricky to keep track of your retirement savings. The pension system harks back to an earlier time when most people had a ‘job for life’.

In the modern world, perhaps it would help if our pension stayed with us when we moved from one employer to another?

‘Pot follows member’ was one of the proposals of former Pensions Minister Steve Webb, but it was shelved by the government last year. Current Pensions Minister Baroness Altmann has suggested that the idea will be picked up again at some point, but it’s likely to be a while before your pension will automatically follow you from job to job.

In the meantime, don’t leave your pensions lurking in dormant pots while the providers siphon off fees. It’s estimated there could be £750bn of dormant pensions by 2050.

PensionBee can locate and transfer old pensions and put them in a single, easy-to-use plan.

Less paperwork and small print

Surely we don’t still need to receive huge wads of paper through the post? Pension providers have a habit of sending hefty paperwork that’s full of small print and jargon, which means many pension holders struggle to fully understand their pension situation. We think the pensions of the future have concise, easy-to-read documents that make the important information (fees, for example) clear up front, and that don’t try to baffle customers with jargon. It saves trees, too.

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Low cost

So as we’ve said, we think your pension should be easily accessible online and that you shouldn’t have to wade through stacks of paperwork to find the details. And in turn, these steps should help to drive increased consumer choice and force the market to be more transparent: high-tech pensions should be low-cost pensions.

Currently, many people aren’t aware of the amount of cash that their providers are taking from their pension pots in the form of fees, as many of the old-school pension providers bury various charges in reams of paperwork. These fees can have a big impact on the size of your pot: if you’re paying an annual fee of 2%, your pension pot could be reduced by 36% when you retire, for example.*

Giving you control

Your pension is your money for retirement, and you should feel like you’re in control of it. You should be able to get the information you need about your pension, move your money to another provider if you choose, and shop around for the best annuity when you reach retirement age. Unfortunately, many people aren’t currently in that situation. Pension providers often make it difficult to get information and they charge steep exit fees if you try to move your money. Many people are also led to believe that they have to buy their annuity (their retirement income) from their pension provider, when in fact everyone has an ‘open market option’, which gives you the right to shop around for a good rate.

* Standard assumptions apply. This calculation is based on a pension pot of ^{_isa_allowance}, and is an illustration of how much the fees may reduce your pension pot by when you reach retirement age.

As always with investments, your capital is at risk.

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At PensionBee, we’re on a mission to make pensions simple. Whether you’re just starting your savings journey, nearing retirement, or somewhere in between, The Pension Confident Podcast’s here to help you get the best out of your pension.

We’re now eight episodes into series one, and have covered a wide range of topics, answering some of the key questions you’re asking, from how to keep your pension on track if you’re self-employed, to how to prepare your kids for their financial future. Philippa and the rest of The Pension Confident Podcast team are taking a well-earned break this month, but we’ll be back at the end of September with episode nine; talking about how to stop money worries affecting your mental health.

Catch up on any episodes you may have missed today by searching for The Pension Confident Podcast on all major podcast platforms. Read on for five key takeaways from the series so far.

LISTEN NOW

1. How big is the gender pension gap?

PensionBee CEO; Romi Savova says: “It takes many, many years to accumulate and build up a pension, and the disparity between men and women actually increases with age.”

In this episode, the panel discusses the average difference between men’s and women’s pension pots, what the gender pension gap is, and how it increases over time.

Philippa’s joined by Personal Finance Editor at The Telegraph; Sam Brodbeck, Founder of Vestpod; Emilie Bellet, and CEO of PensionBee; Romi Savova.

Listen here

Read the transcript

2. How to simplify your budget during the cost of living crisis

Personal Finance Expert and Managing Director of Mrs Mummypenny; Lynn Beattie says: “Keep a spending diary for a few weeks, or maybe a month and actually understand where your money is going, and then create a realistic budget from that.”

With people having to choose between heating their homes and buying their shopping, episode five sees the panel discuss what’s causing the current crisis, what we can do to cope,and what The Chancellorcan do to ease things for families across the UK.

This episode features Personal Finance Expert and Managing Director of Mrs Mummypenny; Lynn Beattie, CCO and Co-Founder of Snoop; Scott Mowbray, and Chief Engagement Officer at PensionBee; Clare Reilly.

Listen here

Read the transcript

3. What are the benefits of diversification?

PensionBee Chief Engagement Officer; Clare Reilly says: “The strategy of those pensions is to invest in a really wide range of assets and geographies, and what that will do is give you a more consistent performance over time.”

We discuss what diversification is, what the benefits are, and how your investments might perform in the long-term. Plus, we answer your questions on sustainable investing.

Our guests are Founder of Money to the Masses; Damien Fahy, and Chief Engagement Officer at PensionBee; Clare Reilly.

Listen here

Read the transcript

4. Should you be investing in your property or your pension?

CMO of Habito; Abba Newbery says: “Older people aren’t selling their homes as their retirement fund, and that’s in part because they’ve got their final salary pensions. That’s not going to be the same for my generation or for your generation going forward.”

We cover the evolving landscape of saving for retirement, and whether paying more into your mortgage or pension is more beneficial to your long-term needs.

We speak to CMO of Habito; Abba Newbery, Founder of the Financial Joy Academy and The Humble Penny; Ken Okoroafor, and VP Brand and Communications at PensionBee; Rachael Oku.

Listen here

Read the transcript

5. What to do if you fall victim to a financial scam

Independent Non-Executive Director at PensionBee and former CEO of The Pensions Advisory Service; Michelle Cracknell CBE says: “Level of knowledge and financial expertise is not a barrier. In fact, in a way because the individual is always looking to improve on the investment performance, then they are prime people to be targeted [by scammers].”

Are you confident you know how to spot a scam, and how can you protect yourself from losing your hard-earned savings to criminals?

In this episode, the panel includes Independent Non-Executive Director at PensionBee and former CEO of The Pensions Advisory Service; Michelle Cracknell CBE, Head of Security and Counter Fraud at the OBIE; Lisa Markey, and CTO of PensionBee; Jonathan Lister Parsons.

Listen here

Read the transcript

Catch up on the series so far, watch it on YouTube or read the transcripts for any of the episodes on The Buzz.

If you’re enjoying our Pension Confident Podcast and have feedback you’d like to share, we want to hear from you. Drop us an email on podcast@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. Anything discussed on the podcast should not be regarded as financial advice.

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This article was last updated on 11/12/2024

Do the Right Thing is a 1989 Spike Lee movie where the protagonist wants to do the right thing but often finds it hard. Similar to responsible investing, it can often be hard to know where and how to start.

First of all, there are different types of responsible investing. We can distinguish between socially responsible investing and Environmental, Social & Governance (ESG) investing. Once a niche practice, ESG investing has become a large and fast-growing market segment, however, although interest in ESG investing continues to grow, the fear of missing out on returns still inhibits many investors.

In such a new and broad investment landscape, it takes time to investigate and understand how ESG works. There are also several myths around ESG investing, which we’ve dispelled below.

1. Myth: “ESG investors must sacrifice high returns for investments that match their values”

According to PwC Luxembourg’s first European Sustainable Finance Series report, ESG investing is the growth opportunity of the century! Specifically, it gives evidence that the pandemic’s impact was not felt as strongly in the ESG space compared to the overall market.

A report from Morningstar confirms PwC’s stance. The performance of their own ESG-screened indexes tends to be strong, with 57 of 65 ESG indexes (88%) outperforming their broad market non-ESG equivalents for the five years through to the end of 2020.

Finally, researchers continue to explore the relationships between ESG performance and corporate financial performance and, in fact, companies that consider ESG are more likely to be strategic in nature - being less focused on beating next quarter’s earnings and more engaged on creating an enduring company structure and long-term financial results.

2. Myth: “ESG investing is simply not investing in something”

It’s true that negative screening has been the most widely applied sustainable investment strategy globally, used for two-thirds of sustainable investments. Negative exclusionary screening in ESG is the process of identifying and excluding certain sectors and/or companies from the investment portfolio based on controversial business activities or practices.

However, a big part of sustainable investing is engaging with companies, not just divesting. Divesting is the removal of investment capital for moral and financial reasons. For example, at PensionBee we believe in the engagement with consequences approach. This means we want to work with all companies to help them become better corporate citizens and create an investment system that rewards positive impact to the planet and society. However, there will always be some companies that it’s not possible to engage with. This is as a result of their business activities, such as the manufacture of weapons expressly intended to harm civilians, or because they continually break international norms in line with the United Nations Global Compact (UNGC).

Nevertheless, ESG integration, which is the systematic and explicit practice of incorporating ESG factors and information into financial analysis and investment decisions, has been growing at 17% per year. This technique is now used with nearly half of sustainable investments.

3. Myth: “ESG investing only impacts the environment”

The environment is definitely a crucial part of ESG investing, however, the “S” (social) and the “G” (governance) components are also fundamental. A number of social and governance factors can affect a company’s financial performance, ranging from short to long-term challenges.

Social factors to consider in sustainable investing, include looking at a company’s strengths and weaknesses in dealing with social trends, its workforce, the communities it operates in, and politics. The governance factors include decision-making, the purpose of the corporation, business ethics, tax transparency, role and responsibilities within the company, including the board of directors, committees, managers, shareholders and stakeholders.

Several companies and European funds are exploring ways to improve how they consider risks and opportunities related to social and governance factors, for instance linking their sustainable investing strategies to the United Nations Sustainable Development Goals (SGDs) - 17 goals developed to “end poverty, protect the planet, and ensure prosperity for all”.

Another example is the Workforce Disclosure Initiative (WDI) which aims to “improve corporate transparency and accountability on workforce issues, provide companies and investors with comprehensive and comparable data and help increase the provision of good jobs worldwide”. In 2021, 173 global companies took part in the initiative, including PensionBee.

4. Myth: “Only young people are choosing ESG investing”

Sustainable investing strategies seem to have particular appeal among younger generations, however, different studies from different institutions show that baby boomers and generation X investors are equally interested in ESG investing and many consider sustainability factors when selecting an investment product to ensure they make a positive impact with their investments.

Furthermore, the UK’s Department for International Development found that “68% of UK savers wanted their investments to consider the impact on people and planet alongside financial performance”. This shows that investors across all age groups do care about more than just the financial gain of their investment portfolio, they want to understand the social impact of their investment too.

5. Myth: “ESG investing is expensive”

One concern that frequently arises amongst those new to ESG investing is price. Overall, affordable sustainable investing options are becoming more available to savers and retail investors as exchange-traded funds or EFTs. EFTs are financial products usually structured to mirror a specific segment of the market, often indices and are increasingly incorporating sustainability.

Morningstar have examined several different funds comparing their average expense ratio and found that the average expense ratio for ESG funds tends to be lower than the average for non-ESG funds. With regards to fees, these are just slightly above the average for ESG funds in comparison to non-ESG funds.

Whilst ESG funds tend to be a bit more expensive compared to other funds, the differences are minimal and can often be attributed to the fact that ESG funds are not very large and most of them are usually actively managed.

ESG Pensions

At PensionBee we offer our customers the Climate Plan. The Climate Plan is designed to achieve net zero emissions by 2050 through an accelerated decarbonisation strategy. The plan’s objective is to align with the goals of the Paris Agreement to keep the rise in global surface temperature well below 2°C above pre-industrial levels. It does this by continually reducing the total intensity of the GreenHouse Gas (GHG) emissions produced by companies in the plan by at least 1^{_personal_allowance_rate} each year.

View our pension plans to learn more about the Climate Plan and more.
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Risk warning

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

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Five lessons learnt working at PensionBee

When I left teaching last year, I was looking for a new challenge. Something totally fresh and exciting. Little did I know I was going to find it in the pensions industry! Since starting at PensionBee I’ve been on a whirlwind tour. It’s been rejuvenating, uplifting and hard work. Here’s what I’ve learnt…

If something is broken, fix it.

The idea for PensionBee began back when our CEO Romi had a rather costly, negative experience with her pension provider. Rather than being defeated by the system, she decided to revolutionise it! This rule applies to everything we do within the company. We are constantly on the lookout for ways to improve: if it’s inefficient, we change it. One of the most invigorating things about working for a young start up is there’s no dusty, old formula to follow. Although some things might take longer to change…

The hills are alive with the sound of hold music.

If I didn’t have an appreciation for the supposedly soothing sounds of telephone orchestras before, I certainly do now. It amazes me how some companies can be so inefficient, and yet still retain their customers. In the hunt for people’s pensions there is a wide range of difference between providers. Some are helpful, others fill the office with the constant purr of hold music. Our stress balls - named after the worst offenders - provide a small amount of release, but what really keeps us going is determination to make a difference to the world of pensions.

Pensions don’t have to be boring.

I never would have expected myself to work in this industry and love it! However, I knew immediately PensionBee were on to something far too special to miss. At the time I was experiencing a mild case of “pension panic”, wondering why I couldn’t solve my worries with the click of a button. I think it’s about time pensions were given a make-over and brought into the 21st century. It’s exciting working for a vibrant company with a clear mission, one which will hopefully put people back in control of their futures.
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Show and Tell is for grown-ups too.

Coming from a background in early-years education, I was surprised to find Show and Tell here in the office. Instead of talking about our toys, we show the team our proudest achievement of the week. Having the opportunity to peak into all areas of the company is great, even if coding does look like a magical language to me! It’s refreshing to share the positives and see what everyone gets up to behind their screens.

A team that bathes together, stays together.

Here at PensionBee there is a company culture of getting in the bath tub as a team. It’s intimate, it’s cosy, but we’re in it together. There’s an addictive buzz in the room when everyone is equally passionate and committed to a cause. Working with such a young team, where everyone is on top of their game, keeps the atmosphere fresh and inspiring. It could just be the best company culture you’re ever likely to see.

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Our mission has always been to help everyone look forward to a happy retirement. In February, we launched a new ‘Retirement‘ hub on our website to help our customers do just that. It’s a handy collection of resources that help you prepare and adjust for later life.

Our new Retirement section

Retirement is personal and unique to everyone, it may involve spending more time with your family, travelling or volunteering. You may even hope to keep working on a part-time basis or try something completely new. Retirement is about how you choose to spend your time. However you picture it, it’s important to know how you can best reach your financial goals.

As you think about retirement planning our new hub will help you consider multiple aspects such as how much you may need to retire, where to turn for support or advice and much more. Here’s what you’ll find and how each section could help you better plan for the future.

Retirement overview

If you’re not sure where to start, use the Retirement overview to get to grips with the basics. This section will help you:

• understand how much income you may need per year in retirement, whether you’re single or in a couple;
• get your finances in order by tracking down and combining any existing pensions;
• learn how tax affects your pension, what the tax benefit of contributing to your pension is and how much you can expect to pay in tax once you start withdrawing; and
• think about managing life in retirement. From leaving your pensions to loved ones to looking after your mental health.

Retirement planning tools

Under Retirement planning tools, you’ll find our range of calculators to help you plan financially. Our Pension Calculator can help you work out how much you’ll need to save to reach your desired retirement income. It also includes tools that help you see how long that income will last. These include our Inflation Calculator and Pension Tax Relief Calculator. Underneath each tool, you’ll find a ‘What will I need?’ link. Click on these to see a simple list of the information you’ll need to have on hand to get the most from the tools.

Withdrawal and retirement income

After diligently saving into your pension over your working life, it’s important to know what your options are for taking your pension when eligible. You can see these in the Withdrawal and retirement income section. Learn about the flexibility of pension drawdown and the predictability of an annuity, as well as how to combine them. We hope you’ll gain a better understanding of which withdrawal option may be right for you and even how you can combine them.
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Retirement checklists

Use our retirement checklists to see if you’re on track to meet your goals. Our checklists will help you consider things like budgeting, combining your pensions, naming your beneficiaries and diversifying your savings. These quick-start guides enable you to identify and consider parts of your planning you may not have already thought about so you know what steps to take next.

Your retirement and PensionBee

When you’re eligible (currently 55, rising to 57 from 2028) and ready to withdraw from your private or workplace pension, PensionBee offers several options. These include using pension drawdown to take a tax-free lump sum or making regular withdrawals. Both of these can be done conveniently through our app or website. You’ll also find information about annuities, the types that are available and how you can purchase one from Legal & General, as well as how you can combine the options. Learn about these in ‘Your retirement and PensionBee’.

Retirement article insights

Over the years we’ve created lots of retirement-focussed articles and now we’ve collated these into one place. Our Retirement article insights include articles from money bloggers, personal finance journalists and investment professionals. You’ll find a range of topics from financial planning tips such as how to increase your guaranteed income in retirement to more personal, but equally important, insights like how to prepare for retirement emotionally. Check back as we update and add new articles to help you prepare for the future.

Talk to an expert

Sometimes you just need to get in touch with a human. If you still have questions or need extra support we’ve outlined some options under ‘Talk to an expert’. Here you’ll learn how to get a free Pension Wise appointment if you’re over 50 or discover how to get specialist pension advice from an Independent Financial Adviser (IFA). You can also contact PensionBee. We can’t give you advice but we can help you understand more about how pensions work and our products.

Where can I find the Retirement section?

You’ll find our new section by going to the ‘Retirement planning’ tab on our website and clicking ‘Approaching retirement age’. Check it out now and make sure you’re on track for a happy retirement.

Future product news

Keep your eye out for our next product update or catch up on January’s post. We’ve got more great new features in the works which we’re looking forward to bringing you throughout the rest of the year. We’ll let you know what they are, how they can help you save for a happy retirement and how to get started.

Risk warning

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

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Our vision here at PensionBee, is to ensure that our customers, and our community, feel more pension confident. We also want to empower them to feel more in control of their pensions and their retirement. Whenever we’re developing new features, we always think about these goals, and ensure that everything we release embodies those aims.

Our latest feature release allows our customers to withdraw from their pension using our mobile app, a functionality that was previously only available via our website. This allows our customers to have full access to their pension from the palm of their hand!

Our mobile app had withdrawal symptoms

Since the release of our mobile app (available from Apple and Google app stores) in June 2018, it’s been a hub for many of our customers to remain updated on the key information regarding consolidating pensions with us. However, one feature that our app was missing, which was available only via our website, was the ability to withdraw directly from the mobile app.

Over time, we’ve received feedback from our customers centered around the possibilities of withdrawing from our app. This has ranged from customers letting us know that they think it would be easier to withdraw using the mobile app, or even that it was confusing that the withdrawal option was only available via our website. We listened to the thoughts and feedback from our community, and we agreed!

The possibility of allowing our customers to withdraw from the app created a lot of buzz throughout the PensionBee team and we decided to take action on this to improve the experiences of our customers. So, over the last few months the team have been hard at work to bring the withdrawal functionality over from the website into our mobile app, which we have now successfully done!

Where do I find this function on the mobile app, what does it entail?

If you’re a PensionBee customer who’s aged 55+ (57 from 2028) and have a live balance in your PensionBee account, you’ll soon be able to find the withdrawal feature on your mobile app under the ‘funds’ section, where it will be titled ‘withdraw from your pension’.

The withdrawal journey will consist of a few steps that you will need to go through. But don’t worry, they shouldn’t take too long! You’ll firstly be introduced to withdrawals and be provided with some useful information regarding the withdrawal process, such as how much you can withdraw.

After the introduction to withdrawals, you’ll then be able to enter how much you wish to withdraw. You’ll be provided with all the information you need to know such as your current balance and how much tax-free and taxable cash you have available to withdraw. We offer flexi-access drawdown at PensionBee so you can withdraw in a way that works best for you. Please note, when you withdraw a taxable lump-sum from your pension, an emergency tax rate will be charged until your individual tax code is received from HMRC directly.

To allow you to drawdown, we require you to answer 16 regulatory questions to ensure you’re aware of the implications associated with withdrawing from your pension. These questions will be ‘yes’ or ‘no’ questions but please do take the time to read through the information provided when responding.

You’ll then be able to enter the bank details for the bank account you wish your withdrawal to be sent to. If you’ve made a previous withdrawal, you’ll also get the option to select a previously used bank account.

If you’re requesting your first withdrawal, or your personal/bank details have changed, we’ll require you to go through our verification process to ensure our withdrawal process is as securely and safely as possible. If you’ve previously made a withdrawal and your details have not changed, then you won’t need to go through this process again. Once completed, you’ll have then successfully requested a withdrawal.

What’s on the horizon?

We want to continuously make improvements to our service and bring the features that our customers are requesting so that we can provide the best possible experience and ensure that they feel increasingly more pension confident each and every day.

Regular withdrawals

Following on from implementing withdrawals in our mobile app, we want to start looking into allowing our customers to arrange a regular withdrawal from their pension, instead of having to manually request a withdrawal. This will allow customers to be able to schedule for a set withdrawal amount to be taken from their pension, for example monthly on the 20th.

BeeHive improvements

The BeeHive is the heart of our product and it’s where customers are able to view all the important details regarding their pension and undertake any key actions such as contributing and withdrawing. This is why we want to continuously improve the interface of our BeeHive to ensure it’s as user friendly as possible!

Some of the changes we’re looking to make are around the resources area where customers can view documents such as annual statements and payslips. We want to change the way these documents are displayed in the BeeHive so that it’s easier for our customers to find any documents they may wish to view.

We’re always open to any feedback or suggestions you may have that you feel will better your PensionBee experience. Please never hesitate to drop us an email with any questions or thoughts you may have at feedback@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.

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First introduced in December 2000, pension splitting or sharing is a formal agreement designed to include money built up in a pension as a part of a divorce settlement. Nearly 25 years later, industry experts say there’s still a lack of awareness of how finances can be split in a divorce.

A spokesperson from The Law Society says: “Pensions are complicated. Because of this, too many women aren’t including their ex-partner’s pension in divorce. There’s a reluctance to see a pension as a joint asset.”

The Institute and Faculty of Actuaries (IFoA) estimates that 6^{_personal_allowance_rate} of divorces ignore pensions. This equates to around £1.8 billion a year in pension funds. It’s thought that divorcing women tend to be more focused on their family’s immediate needs, such as housing. Keep reading to find out more about pension splitting in divorce.

Pension vs. property

Even if your ex-partner has only been putting away a small amount each month into their pension, it could be worth thousands of pounds by the time they come to retire. If they have a defined benefit pension (also called a ‘final salary’ pension), it could be worth even more.
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Pension splitting - the facts

In England, Wales, and Northern Ireland, the total value of both parties’ combined pensions are taken into consideration. This includes amounts saved before your marriage. The rules are different in Scotland, as only the money saved during your marriage is considered as a part of the financial settlement. How your pension is then divided depends on factors such as your age, how long you’ve been married and the types of pensions you have.

What type of pensions do you have?

You’ll need to look at what type of pensions you or your ex-partner have been paying into as the rules around splitting them differ.

• Defined contribution pensions (a personal or workplace pension) - these are the most common type of pension and are based on how much is paid in and the performance of your investments over the years.
• Defined benefit pensions (also called ‘final salary’ pensions) - these are a type of workplace pension that’s based on your salary and the number of years you’ve worked for the employer.

In both cases, you’ll need to get a pension valuation from the provider. This is called the Cash Equivalent Transfer Value (CETV). If either of you have a defined benefit pension, depending on the value, you may need help from an Independent Financial Adviser (IFA) who specialises in divorce or dissolution.

Each divorce settlement is different, so how the pension is split will depend on your circumstances. There are three main ways of splitting a pension.

• Pension Offsetting - the value of you and your former partner’s pensions are used to offset other assets, such as property.
• Pension Sharing Order (PSO) - you take a percentage share of your former partner’s pension by either joining their pension scheme or transferring your share to a scheme in your name.
• Pension Attachment Orders and Earmarking - some of your former partner’s pension is paid to you, usually when they start to withdraw it.

Both Pension Offsetting and PSOs offer a clean financial break for both parties. With a Pension Attachment Order, you’ll need to wait until your ex-partner starts taking their pension before you can access any of the money. Plus, you have less control over where the pension remains invested and if you remarry or your former partner dies, you’ll stop receiving the payments.

A spokesperson from The Law Society says: “One client said she was happy having the house - which had around £150,000 equity in it - and wasn’t interested in looking at her ex-partner’s pension. I managed to persuade her to consider it. It turned out her ex-partner’s pension fund was worth just over £1 million.”

What about the State Pension?

The rules around divorce and the State Pension are complex. How your State Pension could be split, if you receive it, depends on your age. If you receive the old State Pension (you reached State Pension age before 6 April 2016), it consists of two parts - the basic State Pension and additional State Pension. Your basic State Pension cannot be shared in a divorce settlement. However, the court can issue a PSO on additional State Pension, if you or your ex-partner receive it.

If you reached the State Pension age after 6 April 2016, or are yet to reach State Pension age, you’ll be eligible for the new State Pension. The new State Pension can’t be split in a divorce settlement. For more information, and to check your State Pension eligibility, go to gov.uk.

If you’re going through a divorce, visit MoneyHelper to access their resources or to contact their free helpline.

Samantha Downes is a financial journalist and has written for most national newspapers and women’s magazines. She’s also the author of two finance guides and has set up the Substack PumpkinPensions to help guide people looking to save more towards their future.

Risk warning

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

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At PensionBee, one of our core values is love. This is an important pillar for our approach to diversity and inclusion. We want to create a working environment where everyone has equal access to opportunities and is treated with fairness and dignity. This motivated us to join the government’s Disability Confident scheme.

What’s the Disability Confident scheme (DCS)?

The DCS is a government initiative designed to encourage employers to recruit and retain individuals with a disability or a long-term health condition. The organisations committed to this scheme are integral in changing attitudes towards disabilities. This is achieved by altering behaviours within their own business practices and communities. As a ‘Disability Confident’ employer, we’re committed to employing talent from diverse backgrounds.

There are around 7.7 million people of working age with a disability or long-term health condition in the UK. Yet only around half are in some form of work. Being part of this scheme has many benefits:

• we’re able to advance our understanding of disabilities;
• we’re seen as an equal opportunities employer to prospective employees; and
• we can continue to improve the support we give to new and existing disabled employees, helping them to reach their full potential at work.

How does it work?

The scheme has three levels designed to support employers on their Disability Confident journey, these are:

• Disability Confident Committed (Level 1);
• Disability Confident Employer (Level 2); and
• Disability Confident Leader (Level 3).

Committed (Level 1) is achieved upon signing up to the scheme. We can proudly announce that we’ve achieved Disability Confident Employer (Level 2). This is thanks to the hard work of everyone at ^{_pensionbee_author}.

Find out more about our Vision and Values.

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Another year’s flown by at PensionBee. Throughout 2024 we’ve continued building new tools, bringing you important retirement information and improving our existing features to support you in becoming more pension-confident.

We look back at some of the key innovations that, with your feedback, we were proud to bring you this past year.

We enabled you to build a fuller picture of your retirement income

What is it?

You can now add the values of up to five pensions you hold with other providers to the Retirement Planner in your account (your BeeHive).

How does it help you?

Seeing more of your pension savings in one place makes it easier to get a fuller picture of your retirement income. This feature can help you adjust things like how much you may need to contribute to reach your retirement goals. You could couple this with one of our other new additions this year, our ‘Approaching retirement’ hub (more on this below) which will support you in understanding how much income you may need in retirement.

Where can I find it?

It’s available in the app and on the website by logging in to your BeeHive, selecting ‘Analytics’, and then selecting ‘Retirement Planner’. Once there, scroll down and you’ll find the ‘Add an additional pension’ button.

We helped you understand how your plan is performing with our fund past performance chart

What is it?

Our fund performance chart shows how ^{_money_purchase_annual_allowance} would’ve grown if you’d invested that money into that plan’s fund five years ago.

How does it help you?

Seeing your pension fund’s past performance may give you a better idea of how it could perform in future. Although it’s worth remembering past performance isn’t an indicator of future performance and your pension can go down as well as up.

You can also compare performance with your plan’s objective. For example, our Preserve Plan focuses on preserving the retirement savings you’ve already built rather than growing them. So, whilst the chart may show more modest returns over the long term compared to some of our other plans, this would be more in line with this plan’s objective.

Overall, it’ll give you a better understanding of the impact of a fund’s performance on your pension balance and help you see if your plan’s the right one for you and your needs

Where can I find it?

It’s available in the app and on the website by logging in to your BeeHive, selecting ‘Account’ and then either clicking on ‘My Plan’ (on the website) or tapping on ‘Plan information’ (in the app).
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We introduced a checklist to help you get the most from your account

What is it?

Our checklist is a simple way to help ensure you’ve completed those essential steps to make the most of your PensionBee account.

How can it help you?

It’s important to get and stay on track for your retirement. That includes things like transferring your old pensions to make managing them easier plus potentially saving on additional fees. It also includes making regular contributions to build your retirement income and seeing if the plan you’re invested in is still right for you or if you’d like to switch. These are exactly the things you can refer to using our checklist to help you get and stay on track.

Where can I find it?

It’s available in the app and on our website by logging into your BeeHive where you’ll see it under your ‘Transaction history’ on your ‘Balance’ tab. If you don’t see the checklist, it probably means you’re all up to speed and have completed each item.

We created our Approaching retirement hub to help you prepare for life in retirement

What is it?

We launched our new ‘Approaching retirement’ hub on our website to help you learn about the things you need to consider when you eventually stop working and how you can plan towards your retirement goals.

How can it help you?

When planning for later life, knowing where to start can be hard and overwhelming, so we’ve broken down all the key information. You can get to grips with everything from how much income you might need to getting your finances in order for the future.

Where can I find it?

Visit our Approaching retirement hub on our website.

We launched our Pensions Statistics Dashboard to keep you up to date with key pension information

What is it?

A single source for all the key pension figures and information you need to help you manage your pensions more effectively.

How can it help you?

Stay up to date with the latest stats that impact your retirement like the State Pension age, how much it’s currently worth as well as the latest pension tax rules and allowances. This way you can make any adjustments to things like your contributions to help you achieve your retirement goals.

Where can I find it?

Visit our dashboard on our website.

What else did we get up to?

Sometimes it’s the little things that make a big difference so here are a few of the smaller changes we made to make life that little bit easier.

We made it easier to see what’s happening with your pension’s transfer

If you’ve started transferring an old pension, you can see if the transfer’s been put on hold in your BeeHive and if you need to do anything. You’ll now see a little icon overlaid on the ‘Funds’ tab. It makes it easier to see at a glance if you need to take any action on your transfers.

We made it easier to find your old providers

We added a simple search box in our app so finding the names of your old pension providers is now faster and more convenient. It saves scrolling through a long list of names and should help you avoid simply choosing ‘Other’. Knowing your provider’s name makes it quicker for us to locate and transfer your old pensions.

We improved our website’s navigation to make our information and tools more accessible

We also restructured our website’s navigation so it’s easier to find the information you need. For example, we grouped and renamed our retirement-related information so you can now find all our retirement tools together under our ‘Retirement planning’ tab. This should make planning and adjusting for life when you stop working that little bit easier.

Our roadmap for 2025’s packed with more exciting changes. Keep an eye on our blog and your email to know when the latest PensionBee app and website features drop.

Questions or comments? We always welcome your feedback and suggestions on these or any other features you use. Email us at feedback@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.

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This article was last updated on 06/04/2025

A key step to supporting women’s financial inclusion is through education, and there’s been a rise of financial education (fin-ed) platforms seeking to do this. Fin-eds are helping to address the knowledge gap between men and women. They also help women develop skills, whether that’s with managing their money or improving financial literacy. Fin-eds can be digital platforms, social media channels and apps.

What’s financial literacy?

Financial literacy‘s the ability to understand and use financial skills. It builds the foundation of your relationship with money and can help support things such as saving for retirement or running your own business. Although, learning these skills requires an understanding of financial terms, such as ‘interest rates’ and ‘Income Tax’. According to the TIAA Institute, the six main areas of financial literacy are:

• earning;
• consuming;
• saving;
• investing;
• borrowing; and
• managing debt.

Financial literacy’s measured in two ways: by looking at someone’s skills in these six areas as well as their financial health. ‘Financial health’ or ‘financial wellbeing’ describes the state of someone’s finances. Your income, and how much money you’ve saved or invested, can impact your financial health. Both financial literacy and education can also help to improve financial wellbeing too.

Why does improving female financial literacy matter?

The gender financial literacy gap varies across the globe. and gaps in confidence can start at a young age. A survey found that 33% of young boys say they’re confident about personal finance knowledge. This is compared to ^{_scot_intermediate_rate} of young girls. What’s more, almost three-in-four teens said they wanted more personal finance education. They turn to platforms like YouTube (38%), TikTok (33%) and Instagram (^{_corporation_tax}) for this information.

Improving understanding of financial terms helps build confidence. Women may then feel more confident with things like budgeting and investing. This could help them to increase their income, avoid debt and prepare for emergencies. It may also help address the existing gender investing gap and pay gap.

Research shows that financial literacy tends to be lower amongst underrepresented minority women. Both gender and race are barriers to accessing a fair financial education. The research found two areas where women rank their financial knowledge higher than men - consuming and earning.
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The rise of female fin-eds

Female fin-eds aim to empower women. They provide the knowledge and tools women need to manage money and investments.

Some of these platforms include:

• Female Invest – a membership platform which offers bitesize learning, webinars and informative content;
• Propelle – an investing platform for women, helping them learn, connect and invest all in one place;
• Rainchq – financial coaching centred around helping women build financial resilience and long-term wealth;
• Vestpod – a platform offering workshops, masterclasses and boot camps so women can achieve financial independence; and
• YourJuno – a free app designed to show women how to earn more, spend less and increase financial confidence.

Increasing female confidence and financial wellbeing may help address other issues like the gender pay gap. It may also help women tackle salary negotiations, investing and so much more. Fin-ed platforms help women feel empowered in their financial decision-making. In turn, this may help them achieve their financial goals and thrive, now and in the decades to come.

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.

Amy Nguyen is a Strategist, Researcher and Writer focusing on corporate sustainability, global value chains, finance and fashion. Amy is the Founder of Sustainable & Social, a platform dedicated to deconstructing complex climate issues for a millennial audience.

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Developing resilience has become increasingly important, and over the last year in particular. The cost of living crisis in the UK, fuelled by the war in Europe, persistent inflation and rising interest rates, is still very much impacting day-to-day household spending and individual wellbeing.

The world continues to evolve rapidly and to grow in complexity, making it feel hard to navigate at times. The rise of technology, changing regulations, and an increasingly global economy set against the complex backdrop of geopolitical considerations, all drive changes in our lives.

Financial resilience is essential for managing, surviving and thriving in difficult times. By cultivating this resilience, we have a better chance of handling whatever life throws at us and of remaining more hopeful in the face of adversity.

Before I joined PensionBee in 2020 as the Chief Corporate Officer, I’d been lucky enough to enjoy a long career in investment banking, private equity, and subsequently as a founder of an online retail business.

In 1999, I began my career in financial services. After running a gruelling gauntlet of tests and interviews, I was fortunate to be accepted to the prestigious Morgan Stanley internship program, and would later be offered a position on their graduate scheme. Now, more than 20 years later, here’s what my career and life has taught me so far about the importance of financial literacy and resilience.

Challenging the status quo

People close to me would probably say I’ve always been pretty driven and that I gravitate towards a challenge. What bigger challenge than being the sole non-white female in my analyst class across investment banking in Europe, in a very male-dominated industry. Back then, the c.1^{_personal_allowance_rate} female proportion of the class was considered ‘good’. Statistics became dramatically worse with increasing seniority.

Today, women make up nearly half of the UK workforce, marking a record high from the previous 2019 figure of 47% labour representation. However, women still face significant barriers in the workforce, especially in terms of pay equality and access to leadership positions. These disparities are even more pronounced for women of colour.

As I rose through the ranks, I’d often find myself as the only woman in my team, in my division, at the table or in the boardroom. But I was determined to ensure that neither my gender nor my ethnicity was my memorable or differentiating characteristic, instead allowing my technical skills, work ethic and individual personality-based characteristics to hopefully make an impression of their own. A better way to be remembered, with more longevity.

During my time in investment banking and in private equity, I felt privileged to gain invaluable experience, but it wasn’t easy. I often felt like there was a greater spotlight on me than others in the ‘sea of suits’ - this is especially difficult when you’re under pressure in an intense job, difficult early on in your career when you’re trying not to falter, and equally difficult when you’re rising through the promotion ranks - especially when you don’t represent the majority. I felt pressure to have to outperform my male peers, in order to prove my worth.

But with the support of some great allies (including both men and women) and some grit and determination, once I’d earned the recognition, I did feel that I had a platform to stand out and a voice to help empower others to challenge themselves and the status quo.

Empowerment through financial resilience, but mind the gap

After welcoming my second child into the world in 2013, I made the decision to leave the bank and pursue my dream of running my own business. I set up an online retail business with my best friend, selling new and pre-loved luxury kids fashion. Up until then, we’d both been strengthening our financial resilience and building personal resilience through lived-experience for many years, without necessarily realising that it was this that allowed us to take this opportunity.

Moving from a role in a large global organisation to becoming the driving force behind a fresh enterprise was a major change. We worked incredibly hard to build our business from the ground up, doing everything ourselves, no task too big, no task too small. Despite the challenges of juggling our roles as business owners and parents to young children, the experience was incredibly rewarding.

We created a supportive environment where we could be our authentic selves, working with passion and drive, while remaining honest and open. The training I’d received in my career to date, and the very important experience of being a mother and tackling all that comes with that, both prepared me well for this venture.

Spending those early years of my career building my financial and personal resilience empowered me to seize opportunities and to take calculated risk, without being overwhelmed by the fear of consequences or the fear of failure. Resilience enabled choice.

Self-employment rates have been rising over the past decade. As a business owner, you’re able to control the amount of money you receive in terms of your salary, bonus, and pension. Shockingly, only 16% of self-employed workers pay into a pension, causing millions to retire without adequate savings.

Despite my financial experience and knowledge, with the immediate expenses of setting up a new business, and with two young children to raise, I found it hard to prioritise saving for my future (including my pension) during that period, experiencing first-hand just how easily the gender pension gap can arise. A very common problem, and a very valuable lesson learned.

The gender pay gap’s well documented. For example, the Office for National Statistics found that among full-time employees the gender pay gap was 8.3% as of April 2022. However, over time this gender pay gap compounds into an even bigger gender pension gap. PensionBee research from 2021 revealed an average gap of 38% across the UK, peaking at almost 6^{_personal_allowance_rate} in Northern Ireland.

Let’s talk about embracing equity

Joining PensionBee, to lead its transition to becoming a publicly listed company, was a unique opportunity that I just couldn’t pass up for many reasons. Being part of an ambitious, dynamic and diverse team, on a mission to improve the lives of many UK consumers by helping them to save for a happy retirement, while shining a light on important societal issues, was very appealing to me.

Having come from running my own business, and having enjoyed a wonderful working environment there, it would have been impossible to work for a business that didn’t prioritise its culture. Luckily for me, at PensionBee we’re driven by our five core values: honesty, innovation, love, quality, and simplicity. It’s so frequently remarked upon, how extraordinary it is for a financial services company to include ‘love’ as one of its core values. I’m very comfortable embracing this value.

The theme for this Wednesday’s 2023 International Women’s Day’s ‘embrace equity’. At PensionBee, we’re committed to fostering an inclusive environment that mirrors the variety and beauty of our society and of our customers. We’re proud to have achieved 5^{_personal_allowance_rate} gender parity among our employees at all levels of our company, including across our board and senior management team. And we’re always looking for what more we can do to move things forward in the right direction.

Risk warning

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

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September 2025 marks PensionBee’s Carer’s Month - a dedicated time to honour the countless unpaid carers across the UK. These are the unsung heroes whose invisible labour supports families and society. Yet all too often, this caregiving leaves their own financial futures at risk.

This initiative grows organically from our Invisible Workers campaign, launched earlier this year. This campaign highlights the relentless ‘juggle-struggle’ many face between paid work, unpaid care, financial and life admin. But it was fuelled more by instinct and necessity than by applause or recognition. Carers are the glue holding families - and our economy - together. Yet their work remains undervalued and often absent from financial support systems. This has a direct impact on their retirement, which can end up completely ignored.

Carer’s Month is about shining the spotlight on those experiences. Our research shows that just ^{_corporation_tax} of unpaid carers currently save into a pension. This leaves the majority at serious risk of reaching retirement with little or no private pension savings. Our research found many carers:

• don’t know they can contribute;
• believe they earn too little; or
• feel excluded by a pension system designed around the traditional full-time career.

This is the second time we’re celebrating Carer’s Month as it’s a topic very important to us. This month is an opportunity for us to focus on how those challenges play out in real life. It’s a chance to hear stories from those who’ve tried to balance caring duties with paid work and pension planning. Whether that’s mothers, fathers, sons, daughters or grandparents. Their deeply personal experiences remind us that financial exclusion isn’t an abstract concept. It’s very much lived daily by so many.

Last year we organised a talk with Carers Trust where we heard from people in the community about their lived-experience of being carers. This year we’re taking a different approach. We’re going to hear some new perspectives, including an experience from inside the care system. Too often, the transition from being a carer back into paid work is overlooked. But it can shape a person’s outlook on financial independence for years to come.

Another theme we’re delving into is the experience of ‘sandwich carers’. This is where individuals, more often women, are caring for dependent children and their own elderly or disabled relatives. This dual responsibility can lead to stress, financial strain and mental health challenges. We’re giving voice to lived experiences under the banner “Where in the sandwich are you?”. With this, we hope to reflect the complex reality of this situation, to benefit from their advice and share in their lessons learned.

We’re also offering practical guidance on small steps carers can take to protect their futures. Whether it’s understanding top up options or learning how to keep contributing to a pension while out of paid work. We want carers to feel supported and informed so they can avoid the pitfalls and find the confidence to begin saving again after a break. And, crucially, we’ll continue speaking up about the systemic changes needed so that pensions work for everyone, not just those with uninterrupted careers and work outside the home.

Yet the reality is that when carers take extended time out of work, pension contributions often fall away. Unpaid carers don’t get the benefits of employer matching or the safety net of Auto-Enrolment. While so much energy is being invested in supporting others, it’s easy to see how saving for the future can easily slip off the priority list. Especially without sufficient access and education to straightforward personal pension options. In this scenario it’s often the carer’s own long-term financial security that suffers.

We’re determined to change that narrative. Carers deserve:

• flexible pension contribution options;
• more awareness about their rights and options; and
• a system that recognises caring as valuable work.

Without reform, the Carer’s Pension Gap will continue to grow. One year out of paid work to care can reduce a pension pot by around ^{_starting_rates_for_savings_income}. After six years, that gap can balloon to around £30,000, representing 13% less in pension savings at retirement.

Carer’s Month is about acknowledging the challenge of being a carer while also celebrating their resilience. By opening up conversations, sharing knowledge, and championing change, we can help carers look forward to a future with financial independence and dignity in 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.

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How does being a pensioner in the UK compare to being a retiree in Australia or the Netherlands?

We’re having a look at where in the world people do well in retirement, taking into account not only the level of state pension but also how governments incentivise personal pension saving and encourage employers to contribute.

Denmark and the Netherlands come out on top

The Global Pensions Index ranks countries’ pension systems each year, rating their adequacy, sustainability and integrity. The most recent index was published in 2015, and Denmark and the Netherlands came out top, with their systems receiving an A grade, indicating ‘a first class and robust retirement income system.’

So what’s so good about the Danish and Dutch ways of doing things? Well Denmark has a public basic pension scheme, a means-tested supplementary pension and mandatory workplace schemes. In the Netherlands, there’s a flat-rate public pension and then most employees belong to workplace pensions schemes, with the amount they receive usually based on their lifetime average earnings.

Australia is in third place in the rankings, receiving a B+ score. The Australian system involves a means-tested pension from the government and mandatory employer pension contributions.

The UK gets a B grade

Where does the UK come? Well our rating isn’t too shabby. We’ve been awarded a B, so pensioners retiring here will be in a similar boat to pensioners in Sweden, Switzerland, Finland, Canada and Chile.

Scrutinising our score a little more, we’ve done well in terms of integrity, which means the researchers reckon the regulation and governance of our system is pretty good, and pension legislation keeps us well-protected from pension providers behaving badly.

We didn’t do so well in terms of adequacy and sustainability though, which means UK pensioners may struggle to make ends meet in retirement, and our system may start creaking in the long term.
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Richer during retirement than while working?

The OECD’s latest figures on pensions also make happy reading for Danish pensioners. The ‘replacement rate’ measures how effectively a pension system replaces the income that people earned while working, and the OECD reckons that low earners in Denmark can receive a replacement rate of 107%, meaning that they could actually have more cash when they’re retired than while working.

The Netherlands does well here too, with a replacement rate of over 90% for average earners.

Across the OECD countries, the replacement rate averages 53% for workers with average earnings, but the UK is right down at the bottom (along with Mexico) with replacement rates of around 20-25%.

All countries face pension pressures

Writers of the Global Pensions Index recognise in the report’s preface that pension systems around the world are under increasing pressure due to ageing populations, uncertain economic conditions and record low interest rates.

They highlight the global move towards greater individual responsibility, with many governments shifting the emphasis onto defined contribution pensions - paid into by employers and workers – rather than state pension systems. This is certainly the approach the British government has been taking recently.

To improve the plight of tomorrow’s pensioners, the report writers suggest that countries will need to increase the state pension age, promote higher labour force participation amongst older people, and encourage (or even require) higher levels of private saving.

They argue that many people won’t save for the future without an element of compulsion, so auto-enrolment legislation (currently being rolled out in the UK) will become increasingly crucial. They also call on governments to improve the governance of private pension plans and introduce greater transparency to the market.

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April saw us launch a refreshed version of our environmental, social and corporate governance (ESG) page. It describes our commitment to driving positive change with respect to environmental issues, our customers, workforce and society generally. In this month’s post, we also focus on our Pension Statistics Dashboard. It’s a one-stop location for key pension figures and data that can help you plan and adjust for life in retirement.

Our refreshed ESG page

As a leading UK pension provider, we’re conscious of using our influence to help build a better future for our customers, society and the planet. We recognise our responsibility in how we operate in our ESG practices. These include limiting our environmental impact and striving for equal gender representation at every level of our business, amongst others. You’ll also find links to our specific policies to learn more about our approach to each.

Environmental

Our concern for the future of the climate is something we share with many of our customers. Their feedback has shaped our work at PensionBee. It’s played an important role in creating our responsible pension plans, including our Climate Plan, enabling customers to invest more in line with their values. As a business, we’re committed to reducing our greenhouse gas (GHG) emissions with our aim to become net zero. We also work with our money managers to exclude companies from our plans that cause catastrophic harm to the environment or society.

Social

Our social responsibilities extend from our employees and customers to society as a whole. Our updated page now links to our Diversity, Inclusion and Equity policy. This describes our aims and goals in building a team that better reflects and serves a diverse customer base. You’ll also learn our approach to hiring and how we promote these values internally. For example, our industry-leading parental leave policy supports anyone going through the adoption process or IVF and gives additional days of leave to use throughout the year to those returning from parental leave. We’re also active in using our ‘Voting Choice’, empowering us to participate in the voting decisions at the annual general meetings (AGMs) of BlackRock and State Street. Through this, we can reflect the interests of our customers in areas of social and environmental concern and in closing the gender pension gap.

We believe that our approach to inclusivity, diversity and equity in our workplace enables us to better help our customers look forward to a happy retirement.

Governance

PensionBee is committed to the principles of the UK Corporate Governance Code. Key principles include seeking the long-term sustainability of the company and contributing to wider society. It also includes making sure our policies reflect our company values and investing and rewarding our workforce.

Check out our ESG page where you’ll find our full list of frameworks, policies and reports.

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We believe our approach to these areas helps support our values of love, quality, innovation, honesty and simplicity as we look to positively impact our customers, employees and society as a whole.

Pension Statistics Dashboard

We recently launched our Pension Statistics Dashboard, bringing together key pension information. As this is now in one place, it’s faster and more convenient to look up the latest statistics. The dashboard includes facts and figures that could help you plan more effectively for retirement. Additionally, you’ll find statistics that give an overview of the current state of pension saving in the UK.

From the current State Pension age and value to your annual contribution allowance, keeping on top of all the key numbers you need to know about can be difficult. For pension savers, several categories of our dashboard should be particularly helpful in saving and adjusting for life in retirement.

The State Pension data category displays statistics such as the age at which you can claim the State Pension and how much it’s worth. Under the Retirement Living Standards category, you’ll learn about how much income you may need in retirement as a single person or as a couple, and the kind of lifestyle you may be able to afford with it. It’s based on research from the Pensions and Lifetime Savings Association (PLSA) and offers a guide to help you define your savings goals. The pension tax rules and allowances section lists all the key pension savings limits. For example, you’ll find the latest annual allowance figure so you know how much you can save into your pension before you’ll need to pay tax.

As the facts and figures change over time, the dashboard will be updated with the latest information. So, if the annual allowance changes in the next tax year you’ll be able to easily see what that new limit is.

Future product news

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

Risk warning

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

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This article was last updated on 21/05/2025

While Socially Responsible Investing (SRI) is evolving, it’s still a relatively new concept which can be met with criticism. For consumers, it can be a complex topic to understand - especially given the threat of greenwashing. Greenwashing is the act of making misleading or false claims about environmental credentials or sustainability. Thankfully, the Financial Conduct Authority (FCA) has stepped in to help. On 31 May 2024, it introduced new anti-greenwashing rules to help savers and investors alike. These new guidelines represent a significant step towards transparency in sustainability claims. But if you still need a little help understanding, this blog is for you.

Keep reading to find out about the main myths and misconceptions around SRI.

MYTH 1 - socially responsible investments underperform traditional ones

False. One of the common debates surrounding SRI is whether these funds can deliver the same returns as traditional investments. Research by Robeco found sustainability data can positively influence returns in 38% of cases. The same research found Environmental Social and Governance (ESG) investing didn’t cause superior or drastically lower returns when compared to traditional investments.

MYTH 2 - socially responsible investing means investing in fewer companies and taking on more risk

False. It’s a misconception that by engaging in SRI, you’ll have few companies or pension funds to invest in. In 2022, there were over 186 sustainable exchange-traded funds (ETFs) representing $100 billion in value. These are investments (shares, bonds or commodities) that are traded on a wide range of stock markets. This represents approximately $100 billion in value.

Global investment research platform, Morningstar provides sustainability ratings on over 20,000 funds. So investors now have a universe of funds to choose from and compare alongside each other.

New FCA regulations mean more companies need to disclose the impact of their supply chains. This means there will be even more data on performance to help inform your investment decisions.

Research from FTSE Russell - a financial company who produce and maintain stock market indices - suggests 64% of all asset owners (i.e. pension fund managers) are keen to adopt sustainable investing. This means companies who don’t adequately manage issues like climate, water and human rights in supply chains may well experience a negative impact on their value. Plus they’re vulnerable to reputational damage.

PensionBee’s Shariah Plan and Climate Plan are both examples of SRI.
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MYTH 3 - sustainable investments are only focused on solving environmental challenges

False. While environmental challenges are topical, there are many iterations of ‘sustainable’ investing. The Chartered Financial Analyst Institute (CFA) breaks down the main differences.

• Socially responsible investing – an investment approach that aims to achieve financial returns while investing only in companies that contribute towards positive social outcomes.
• Sustainable investing – a broad term which can refer to the selection of assets that contribute to a sustainable economy in some way. Sustainable investing prioritises funding companies that consider their long-term impact on people and the environment.
• Impact investing – investing with the intent of generating positive and measurable social and/or environmental impact alongside a financial return. There are also investment themes that focus on sustainable cities or renewable energy. Some of these strategies may be purely focused on climate-related issues and others on people. Screening strategies can also consider ethics, religion, alcohol, tobacco, fossil fuels and more. Take a look at the As You Sow Invest Your Values platform to discover funds with different exclusion criteria.

MYTH 4 - socially responsible investing is just a trend

False. Some sceptics believe that the focus on SRI is simply a trend. This has been driven by the conflict surrounding ESG due to its risks of greenwashing. However, investing with consideration to the climate, plastics, biodiversity, poverty and equality will only become more important. Particularly in regions that are most vulnerable to climate change.

Global asset managers are already starting to adapt to this change. In 2021, 84% were implementing or evaluating sustainable investment strategies - an increase from just 53% in 2018. The scale of increase over the last decade is also worth noting. Morgan Stanley Capital International (MSCI) reported that ESG assets under management increased from $6 billion in 2015 to $140 billion in 2020.

MYTH 5 - ESG scores are always trustworthy and a good measure of a company’s sustainability credentials

False. However there’s potential for this changing as part of the new FCA rules mentioned. Rating providers such as Moody’s and MSCI evaluate a company’s performance across ESG criteria. These scores are used to help investors make decisions about sustainable investing. However, these organisations don’t all use the same methodology. Some use publicly available information while others engage directly with companies. So it can be tricky to compare ESG scores. For example, in 2020, fast fashion retailer Boohoo was given a ‘double A’ rating - the second highest possible ESG score. This score was despite the company’s poor supply chain practices, which included paying workers in its Leicester factory £3.50 per hour. Similarly, in June 2023, cigarette manufacturer Philip Morris International had a higher ESG rating than Tesla. Although, it’s worth noting that the market is constantly evolving, with new metrics emerging. In fact, the choice of socially responsible funds looks set to keep growing according to FTSE Russell.

Summary

In today’s world, SRI will continue to become more relevant. Morgan Stanley reported that 77% of global investors are interested in sustainable investing. A further 54% are planning to increase their sustainable investments over the next year. So it’s well worth keeping up to date on the latest developments if you’re trying to make more informed and ethical investment choices.

Interested in learning more? In episode 16 of The Pension Confident Podcast, we explore impact investing. Listen to the episode, read the full transcript or watch the highlights on YouTube.

Amy Nguyen is a Strategist, Researcher and Writer focusing on corporate sustainability, global value chains, finance and fashion. Amy is the Founder of Sustainable & Social, a platform dedicated to deconstructing complex climate issues for a millennial audience.

Risk warning

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

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Hi, I’m Gordon Kearney from State Street Global Advisors, and I’m here to give you an update about the 4Plus Plan, which you are invested in.

How did the plan perform compared to the market, over the last three months? Did we have a good quarter or a bad quarter?

The global economy continued its strong rebound in the third quarter of the year as COVID-19 related lockdowns eased, government and central bank support remained firm and pent up demand by consumers was released.

Having said that, this momentum began to wane towards the end of the quarter, particularly as services such as tourism and hospitality faced renewed restrictions given rising COVID-19 cases. Countries such as Spain, Italy and the UK that depend more on services, for example tourism and hospitality, began to struggle more than those with more of a manufacturing bias, such as Germany and China.

In terms of how stock markets reacted to these events, overall it was a muted but positive three month period. Stock markets drifted higher, delivering low single digit returns. Government bonds fell slightly over the quarter as longer term interest rates edged upwards from very low levels.

The PensionBee 4Plus Plan added just over 2% in performance terms during the quarter. Whilst the plan had a conservative bias at the end of June, it quickly re-risked as elevated nervousness in markets gave way to more normal market conditions at the beginning of July. These more normal conditions (neither nervous nor aggressive), remained in place right through to the end of September and gave a foundation for markets to take account of new information in a relatively rational manner.

As the performance of different types of assets becomes more spread out, it has become more important to be very targeted in the type of investments held. As such, the plan has focussed more on holding developed stock markets as well as on corporate bonds, whilst remaining more negative on property and commodities.

What can savers expect for the next quarter?

The final stretch of an extraordinary year will be no less eventful than what we have witnessed to date. Two items that will affect our lives over the next few years, namely US elections and clarity on a potential vaccine will dominate markets as we close out the year.

The market has to balance two somewhat opposing forces. The longer the COVID-19 crisis goes on and waves of infection result in rolling lockdowns, the more individuals, companies and governments suffer and questions begin to arise about the sustainability of spending, and resilience of companies and consumers.

At the same time, the longer the crisis goes on, the closer we get to a potential vaccine with results from a number of trials expected before the end of the year. Add a US election to the mix -one that has the potential to have a messy handover - and the ingredients are there for markets to become more nervous into year end.

This uncertainty is not enough to take a defensive position. In fact, a decisive election result combined with positive news on the vaccine front could provide a degree of support to underpin stock markets. The uncertainty does however highlight the benefit of investing in a portfolio that captures upside should the positive outweigh the negative, but can also take swift action to help protect your savings should sentiment deteriorate.

How has State Street Global Advisors driven positive social change in the past quarter?

Our aim is to promote positive changes to the environmental, social and corporate governance practices in the companies that the Plan invests in by engaging with them and voting on resolutions at company annual general meetings.

Climate change has been, and will continue to be, a key area of focus for our stewardship endeavours. As a result of the impact from COVID-19 the attention of many companies has shifted from longer-term sustainability matters to more immediate ESG and economic factors. It is important that companies focus on the short-term issues that have arisen but this should not be to the detriment of systematic risks, such as climate change, hence we have continued to engage with companies on the topic. So far this year we have had 72 specific climate-related engagements and they have focused on having companies:

• Address the risk of climate change on their business
• Commit to reducing carbon emissions
• Educate boards ensuring directors are aware of climate risks
• Provide climate reporting which conforms with relevant standards

Coupled to our engagement efforts to drive positive change, is the use of our vote at shareholder meetings. In recent years most climate-related shareholder resolutions were targeted at energy companies. This year however, we have seen a growing number aimed at financial institutions. One such example is a shareholder resolution raised with Barclays by the responsible investment charity, ShareAction. The resolution sought to direct the company to stop financing energy and utility companies that are not aligned with the Paris Agreement.

Following engagements with shareholders and ShareAction, Barclays announced a plan to reach net zero carbon emissions by 2050 and a commitment to align all of its financing activities with the goals and timelines of the Paris Agreement. Barclays also submitted its own management resolution on climate for investors to consider at the annual meeting vote. The spirit of both resolutions was broadly similar but we opted to support Barclays’ resolution and abstain from the resolution submitted by ShareAction for the following reasons:

• We believe Barclays’ proposal was the more ambitious of the two. Further, Barclays’ ambition to achieve net zero emissions by 2050 covers all of its portfolio, not just lending (as proposed by ShareAction’s resolution).
• The resolution submitted by Barclays sought to transition its provision of financial services across all sectors to align with the Paris Agreement, whereas ShareAction’s resolution was too narrowly focused on the “phaseout” of specific financial services in the energy and power sectors.
• The passing of both resolutions could have created legal uncertainties, as they are both binding.

We will continue to engage and vote on climate change matters and our recently published Annual Climate Stewardship Review which providers further insights into our activities can be found here.

Your updated fact sheet will soon be available to download in the BeeHive. If you’d like to ask a question in the next update or share your thoughts, you can get in touch with PensionBee via email or Twitter.

As with all investments, past performance is not indicative of future performance and you may get back less than you start with.

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Hi, I’m Gordon Kearney from State Street Global Advisors, and I’m here to give you an update about the 4Plus Plan, which you are invested in.

How did the plan perform compared to the market, over the last three months? Did we have a good quarter or a bad quarter?

The global economy suffered from an unprecedented shock in March and April driven by government imposed lockdowns to contain the spread of the COVID-19 pandemic. Economic indicators collapsed globally during the first half of the quarter. The US alone lost over 20 million jobs in April with historic declines in retail sales, manufacturing and housing.

Policy makers responded in record time with massive, broad-based stimulus to support affected workers and businesses. Economic data in May indicates that the stimulus support and re-opening plans are working, and the economic recovery has begun.

Of course economic activity and stock market performance do not always align. Whilst economic activity showed modest signs of recovery, they remain well below levels seen at the beginning of the year. Stock markets on the other hand staged a strong recovery and at the end of June were in touching distance of all-time highs. In essence, stock markets were pricing in continued resilience in economic activity long into the future, underpinned by the various stimulus packages announced.

The 4Plus Plan captured a slice of this upside, returning just over 5% in the quarter. However we remained more balanced in our approach, conscious of the risks that remain and not quite sharing the same confidence as markets.

By de-risking and avoiding the worst of the fall out in March, the 4Plus Plan was able to navigate this year’s turbulence in a smoother manner and as at 30 June, remains ahead of stock markets on a year-to-date basis.

What can savers expect for the next quarter?

As we look out over the next number of months we are likely to experience more volatility than we have seen in the recent past. Stock markets have priced in a substantial amount of good news, and so it is more challenging for markets to drive forward from current levels.

To do so will require confidence that countries around the world can get back to a greater degree of normality. This may come from a medical solution or indeed a continuation of the re-opening that we have seen in many parts of the world.

It is clear that barring a medical solution such as a vaccine, significant risks remain that such re-openings may be delayed in areas where the virus regains a foothold. Despite these risks, government and central bank policy are likely to continue to provide an element of support to markets.

Away from virus-related issues, the other important event as we close in the year is the US presidential election in November. This can have significant implications on share prices as markets assess each candidate’s policies on geopolitical issues, tax and globalisation. As the next quarter draws to a close, we are likely to see some turbulence as a result.

As always, the 4Plus Plan is designed to navigate variable conditions, in order to deliver good returns but to also actively manage the risk and provide a more comfortable journey to investors. When it comes to variable conditions, the remainder of the year is unlikely to disappoint.

How has State Street Global Advisors driven positive social change in the past quarter?

We drive positive social change to the companies that the plan holds through engaging with them and voting on resolutions at company annual general meetings. Our aim is to promote positive changes to the environmental, social and corporate governance practices that the plan invests in.

We recently engaged with Tesco plc, and discussed how strong corporate culture is vital to support the company’s ambitious sustainability efforts. Tesco was the first FTSE 100 company to set a target to become a zero-carbon business by 2050. The company has also committed to source 10^{_personal_allowance_rate} of its electricity from renewable sources by 2030, and so far, has achieved 58% of this goal. In our engagement, we found that Tesco’s board places significant focus on the wider culture of the business. Tesco’s sustainability strategy, the “Little Helps Plan”, is inspired by the company’s core values and aims to mobilise all parts of Tesco’s business to focus on the social and environmental challenges that matter most to its customers, employees, suppliers and stakeholders.

In addition, we engaged with Apple Inc ahead of their annual general meeting. We engaged with the company multiple times to discuss the resolution pertaining to “Freedom of Expression and Access to Information Policies”. We determined that the company’s practices could be further strengthened, as certain aspects lagged those of its peers. During our engagement, we encouraged Apple to establish and publish a formal policy statement on human rights. Apple was agreeable to this request and intends to publish a formal statement on human rights with mention of freedom of expression within a year.

Today, there is a global focus on the value of diversity in the boardroom. Diversity is about having a balance of backgrounds and experiences on boards that manage companies. When we engage with companies, the diversity conversation is no longer about “why” we are engaging on the issue. Instead, the focus is “why not” enhance their board by embracing the value of diversity.

Earlier this quarter, we celebrated the Fearless Girl campaign’s third anniversary and International Women’s Day by creating a “Living Wall”, highlighting the number of companies that have added their first female director to their boards since we began our campaign in 2017. The campaign began with us placing a statue of a girl near New York City’s Wall Street and calling on companies to have at least one woman on their boards, failing which, we would take voting action against directors on the board.

After three years of productive engagements and voting, we are pleased to report that since the introduction of Fearless Girl in 2017, 681 companies, or approximately 49 percent of companies identified by State Street Global Advisors, responded to our call by adding a female director.

Your updated fact sheet will soon be available to download in the BeeHive. If you’d like to ask a question in the next update or share your thoughts, you can get in touch with PensionBee via email or Twitter.

As with all investments, past performance is not indicative of future performance and you may get back less than you start with.

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Hi, I’m Gordon Kearney from State Street Global Advisors, and I’m here to give you an update about the 4Plus Plan, which you are invested in.

How did the plan perform compared to the market, over the last three months? Did we have a good quarter or a bad quarter?

The last three months have clearly been dominated by the coronavirus as it transformed into a global pandemic. It has left many grieving families in its trail and unfortunately will continue to do so over the coming months. Our thoughts are with all those affected.

From a financial perspective, the first quarter of the year was certainly a tough environment for most types of assets as there was almost no hiding from the devastating effect of the fallout from the virus, and the controls put in place to try and tame the spread of the disease.

The speed and severity of the fall in share prices has been one of the fastest ever experienced. Global share prices fell by over 3^{_personal_allowance_rate} from their peak in February to mid-March, before recovering somewhat into the end of the quarter. Even government bonds, often favoured for their low risk, experienced losses of around 1^{_personal_allowance_rate} before recovering slightly by the end of the quarter.

Whilst the PensionBee 4Plus Plan has not been immune to the market turmoil, the fund has been very active in mitigating the worst effects of the crisis. It began reducing its allocation to riskier assets such as shares towards the end of February, taking them from a level of over 7^{_personal_allowance_rate} to approximately 28% by the end of the quarter. The fund experienced a gross return of -9.1% over the quarter as a whole.

This level of return over a relatively short space of time can be unsettling for many investors. However, history has shown that investors with a longer-term time horizon are rewarded for bearing such volatility. In contrast, investors who sell assets at the point of maximum pain are often those who suffer most in the long run.

We hope that investors take some comfort in the framework of the PensionBee 4Plus Plan which is designed to take the swift decisions required to navigate our investors through periods such as we are in now. In essence, these actions to manage risk occur within the fund so that investors don’t have to make these decisions on an ongoing basis for themselves.

What can savers expect for the next quarter?

It is always worth remembering that share prices are aiming to factor in the future, however uncertain that might be. As share prices have already reacted quite negatively, right now they are pricing in a difficult time ahead, including the likelihood of recession.

For stock markets to sustainably recover, more clarity will be required on the path towards returning to more normal day-to-day economic activity. As and when more clarity around the future arises, particularly as medical solutions to manage the virus emerge, then it is likely that this will give the confidence for share prices to increase once again.

The timing of such clarity is of course difficult to predict, and in the meantime, we are likely to see fluctuations in stock prices as investors react to positive and negative news alike. On a positive note, the backdrop is one of very significant policy support. Lessons have been learned from dealing with previous economic crises with governments and central banks around the world having been very swift in ensuring the policy environment is particularly supportive of the global economy through this difficult time.

In terms of portfolio positioning within the 4Plus Plan, we are likely to remain conservatively positioned until such a time as we begin to see greater clarity on a path out of the current turmoil. Our disciplined process incorporates many perspectives as we assess and monitor the environment for opportunities to redeploy cash in order to capture upside as and when conditions improve.

How has State Street Global Advisors driven positive social change in the past quarter?

We drive positive social change to the companies that the Plan holds through engaging with them and voting on resolutions at company annual general meetings. Our aim is to promote positive changes to the environmental, social and corporate governance practices in the companies that the Plan invests in.

In light of the outbreak of coronavirus, our President and CEO, Cyrus Taraporevala sent a letter to the boards of companies that we invest in on your behalf, outlining how we will be engaging with them in 2020 given the serious impact the virus has had on many company’s employees, operations and customers.

In the coming months, our discussions with the companies that the Plan invests in will focus on immediate issues such as employee health, serving and protecting customers and ensuring the overall safety of supply chains. Importantly, we stand ready to help these companies to navigate financial threats and market uncertainty. The full version of the letter can be found here.

Your updated fact sheet will soon be available to download in the BeeHive. If you’d like to ask a question in the next update or share your thoughts, you can get in touch with PensionBee via email or Twitter.

As with all investments, past performance is not indicative of future performance and you may get back less than you start with.

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You may have big plans for 2020. Pensions may be far down the list of fun things you want to do. But the start of a new year is a time for future planning. And that is what your pension is - an investment in your future.

Take a look at the checklist below and make 2020 the year you invest in your dream future.

1. Consolidation

We are a nation of job hoppers. The average person will now have 11 different roles throughout their lifetime. Another new job usually means another new pension. Soon you’ll have a dozen pots scattered far and wide.

Finding out how much you have - and how much more you need to save - can be tricky. You’re also paying a dozen different sets of fees, which are eating into a dozen small pots, making them smaller.

Bringing all of you retirement pots together - consolidation - can make everything neater and easier to manage.

Only paying one set of fees will also save you money.

You’ll be able to see clearly how much you have saved, and how far you are from your retirement goal. If you’re happy with the cheapest plan you can move all of your money into that one and save on fees. Only paying one set of fees will also save you money.

One bigger pot also benefits from better compounding of investment returns, and you’ll be able to assess this growth more easily because it’s all happening in one place.

Consolidation isn’t for everyone. There may be heavy exit fees to leave an old scheme, and if you’re in a defined benefit or ‘final salary’ scheme you may lose valuable benefits by transferring out. But for many people, consolidation is a cheap (and fairly easy) way to boost their pension savings balance.

If you’re using PensionBee to combine your pensions, they’ll tell you if they find that your provider charges an exit fee of more than £10, or if your pension has guarantees.

2. Change how your workplace pension is invested

Almost everyone who works full-time is auto-enrolled into their employer’s pension scheme. But millions of us are stuck in its default fund - this is a problem.

Designed to be suitable for just about anyone, default funds are fairly conservatively managed with only about 65% invested in the stock market.

Pensions are long-term investments. Stock markets go up and down but over time you generally end up a lot better off, all being well. Only investing 65% of your pension in stocks means you’ll miss out on a lot of years worth of potential investment returns.

Squeezing just an extra 1% of investment performance from your pension fund translates into a seriously fatter pot at retirement.

Assuming 8% pension contributions rising in line with inflation, financial experts project a 22-year-old earning £30,000 would get a pension £55,000 bigger from that extra 1% - more than double the £23,000 gained if they paid in 1% more from their salary.

3. Increase contributions

If you’re in a pension you’re already doing something fantastic, investing in your future. But sadly, you’re probably not saving enough.

Employees auto-enrolled into a company scheme have to pay in at least 5% of their salary and the employer adds in another 3%. But many experts say at least ^_ni_rate in total is needed.

If you’re in a pension you’re already doing something fantastic, investing in your future.

PensionBee calculated the difference paying in an extra £100 a month could make to the average UK saver’s pension in the long-term.

Those in their 20s, who have the longest time to save before retirement, would make the greatest improvement - it would almost double their expected pots to £124,287. Those in their thirties could add around £44,000 to their expected pots, totalling £124,853.

In your 40s adding an extra £100 a month to your pension gets you around £118,640 at retirement - over £30,000 more. Even in your 50s you’d likely be much better off, adding another £15,000 to your nest egg.

Saving just £3.20 more a day, every month, into your pension, can give you the luxury of more choice in retirement - about what you eat, where you holiday, how you live.

4. Maximise your State Pension

Are you on track to get the most out of your State Pension? If you’re not sure, make 2020 the year you check!

For example, it was revealed this year more than 260,000 widows and widowers are getting a State Pension sometimes thousands of pounds higher because of a little known quirk in the rules.

In another case “significant” problems with incorrect State Pension forecasts meant 360,000 had been sent out with the wrong information.

Another trip up in the rules has led higher rate taxpayers, often women, to forget to register for Child Benefit (even when they’re not going to claim it), meaning they miss out on their National Insurance entitlement, putting their State Pension at risk.

Basically, the onus is on you to check you’re getting all the State Pension to which you’re entitled. Typically you’ll need 10 qualifying years on your National Insurance record to get any ‘new’ State Pension, and around 35 years to get the maximum. Time out of work to raise children or live abroad can mean you have gaps that will reduce the amount you receive.

Go online or contact the Department for Work and Pensions (DWP) for an up-to-date State Pension forecast. DWP will use your National Insurance record under old and new State Pension rules to calculate your State Pension. Check you’ve claimed credits for periods when you’ve been unemployed or looking after children.

If you find you have gaps in your work history, you can fill them with voluntary National Insurance contributions going back up to six years. There’s no need to bother if you’ve built up 30 years under the old system before April 2016.

Employees who were “contracted out” - a practice popular in the 1970s to the 1990s - before April 2016 will have paid lower National Insurance and so receive a smaller State Pension. Your private pension will include a “Contracted Out Pension Equivalent” to allow for this. You can also boost your state pension by deferring receipt of it.

If you are in any way unsure, speak to Pension Wise for free guidance.

Risk warning

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

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Since we published our Robin Hood index last year, PensionBee has been gathering even more evidence from the frontline. The bad news is it’s still all paper pensions and pigeon post!

We often end up becoming the pensions ‘Samaritans’, the only place that customers can turn to to vent their anger, frustration and feelings of hopelessness in trying to get old providers to give them back their OWN money. We are sympathetic listeners, we also have to navigate these archaic systems on a daily basis.

Stop holding our money hostage!

Over the course of helping thousands of people wrestle back control of their money from their old providers, some really clear themes begun to emerge about what makes our customers most cross about the transfer process. Here’s the top three:

1 No agreed transfer completion date - and you cannot even track progress. Things can trundle along for months with no end in sight! Many throw the towel in; some ask us if it’s even legal.

2 Sending original birth and marriage certificates in the post. Because, who cares if they go missing?!?

3 No online access - old school providers still only communicate by phone or post. We all just love to spend our days listening to hold music and leaving work early to get to the post office before it shuts. Again.

We have developed a few workarounds over the last year, like our own database of average transfer times, so at least we can give the customer an idea of how long things are going to take with each provider. Customers have to sit in a ‘transfer blackhole’ otherwise, and the old school providers seem to think that is called treating customers fairly.

We battled with providers to let customers send photos of their driving licences (rather than send original birth certificates) and we have begged, pleaded and cajoled providers into sending transfers electronically because it’s faster and much safer for customers. Sadly they just won’t listen. They all like to do things in their own different and special ways, regardless of whether that works for their customers. There are just no proper rules, and it’s frustrating for everyone - apart from them.

Necessity + frustration = solutions

So this is when the idea for the 10-day pension switch guarantee campaign appeared. Born out of a desire to fix all of these issues, and channel our shared frustrations into something positive.

Just three steps can improve the pensions transfer experience and start to rebuild trust, and the 10-day pension switch guarantee is how we do it:

1 All providers have to use electronic transfers consistently - no more paper forms!

2 There’s a maximum time limit of 10 days on end-to-end transfers

3 A safelist of Financial Conduct Authority (FCA) regulated personal pensions to help raise awareness of and prevent scams

None of these solutions are new; each one has already has been proposed in various government papers from at least 2012 onwards. But, more importantly, all are possible because they are already happening, we are just yet to see any formal push to implement them as a set of proper rules.

The 10-day pension switch guarantee means that all providers will have to use electronic transfers for our defined contribution pensions. Not only is this quicker, but it’s much safer for customers as payments are tagged and traced, so no money goes missing. Everything is transparent and we all know where the money is at every step of the process. This is entirely possible - it’s already happening in Australia in 3 days or less.

Let’s talk about scams

The switch guarantee also helps simplify the messaging on pension scams. Not all schemes are a scam, so let’s differentiate between what could be a scam, and what is definitely not - by using clear, objective criteria:

• Transfers to schemes operated by a Financial Conduct Authority authorised firm or entity are on a safelist - these transfers should be conducted electronically and in 10 days or less
• Transfers to non-Financial Conduct Authority regulated schemes are not on a safelist, so require extensive manual due diligence and take six months or less

This approach means that the transfers to legitimate schemes can occur easily and quickly, freeing up providers to look more closely at questionable non-regulated schemes. It also maintains an end-to-end time limit for both types of transfer, essential for accountability in the industry.

We have all become accustomed to universal switching principles, such as the ones we see across energy, telecoms and banking. It’s high time we simplify this complicated transfer mess and introduce some proper switching rules in pensions. If only to bring this industry kicking and screaming into the 21st century!

And now over to you

We launched the campaign to raise awareness of these issues more widely, and that’s already begun to happen:

Everyone we speak to is very interested in our case studies and evidence ‘from the frontline’. We also have the support of a fantastic coalition of other Fintech companies - Scalable Capital, Moneyfarm and Nutmeg - all of whom offer or are set to offer Financial Conduct Authority regulated pension products.

We should all be able to switch provider easily and quickly, without jumping through hoop after hoop to earn the providers more money in fees. No more excuses and paper pensions - just safe, quick electronic transfers and transparency on what is happening when.

If we want to see any real change on this issue, we need to take action and call on our local MPs for help. You can also sign our petition to get the issue raised in parliament and ask your friends, work colleagues and family to do the same!

We’ve already heard back from some MPs on this, and they are all very supportive of more transparency in pensions, we just need to keep up the pressure. You can also sign our petition to get the issue raised in parliament and ask your friends, work colleagues and family to do the same!

Pensions are our money - we should be in control.

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