How PensionBee’s plans are performing in 2026: Q3 update

Key takeaways

Performance figures are before fees and come from our money managers. Past performance isn’t a guide to future performance. As with all investments, your capital is at risk. This article is for information only and isn’t financial advice.

This article is part of our quarterly plan performance series. Read the previous update: How PensionBee’s plans are performing as at Q2 2026.

How have PensionBee’s plans performed?

Returns can vary widely each quarter because each plan has a different exposure to asset classes and sectors.

PensionBee plan performance to 30 September 2026, before fees. Source: PensionBee’s money managers (BlackRock, State Street and HSBC). Past performance isn’t a guide to future performance.

4Plus Plan

Our default plan for customers aged 50 and over is managed by State Street. It aims to return 4% a year above the Bank of England base rate over at least five years, and is actively managed to reduce volatility. At the end of Q3, 76.2% (Q2: 76.7%) of the plan was in equities and 16% (Q3:16.3%) in bonds.

Performance in Q3 and so far in 2026: Before fees, the plan returned 1.3% between 1 July - 30 September 2026, and 8.3% between 1 January and 30 September 2026.

What drove performance in Q3: Gains in UK and US stocks lifted the plan’s stock holdings. Its bond allocation held returns back, as UK gilts fell 2.8% and sterling corporate bonds fell 2.0%.

Global Leaders Plan

Our default plan for customers under 50, managed by BlackRock, invests 100% in equities of around 1,000 of the world’s largest companies. It launched in February 2025, so 3- and 5-year figures aren’t available yet.

Performance in Q3 and so far in 2026: Before fees, the plan returned 1.4% between 1 July - 30 September 2026, and 15.3% between 1 January and 30 September 2026.

What drove Q3: Global stocks rose as strong company earnings outweighed higher energy prices and rising interest rates. As a 100% equity plan, it wasn’t directly affected by the fall in gilt prices. Gains from US technology and healthcare companies as well as the UK’s energy companies offset the weaker South Korean stock market.

Climate Plan

The Climate Plan is 100% in equities, following a Paris-Aligned Benchmark that aims to cut carbon emissions by 10% a year,  managed by State Street.

Performance in Q3 and so far in 2026: Before fees, the plan returned 1.5% between 1 July - 30 September 2026, and 10.8% between 1 January and 30 September 2026.

What drove Q3: Large US technology companies drove most of the gains. Because the plan holds no oil and gas companies, it didn’t share in the energy rally. Its focus on lower-emission businesses also means more in banks, property and water and power-grid companies, which fell as interest rates rose.

Shariah Plan

The Shariah Plan is 100% in equities, tracking the S&P Global Shariah index of over 500 companies,  managed by HSBC and traded by State Street.

Performance in Q3 and so far in 2026: Before fees, the plan returned 2.2% between 1 July - 30 September 2026, and 17.1% between 1 January and 30 September 2026.

What drove Q3: The plan’s Shariah screening rules exclude conventional banks and highly indebted companies, so it held almost no banks, property or utilities, the areas that fell as interest rates rose. Meanwhile, its holdings in ExxonMobil and Chevron gained as oil prices climbed. Nearly half the plan’s invested in the technology sector, led by NVIDIA, Apple and Microsoft, and almost 80% is in US companies as of September 2026.

Tracker Plan

The Tracker Plan, managed by State Street, is a low-cost way to follow global markets as they move. It holds 80% in equities and 20% in fixed income.

Performance in Q3 and so far in 2026: Before fees, the plan returned 1.0% between 1 July - 30 September 2026, and 11.4% between 1 January and 30 September 2026.

What drove Q3: The plan’s equities and bonds pulled in opposite directions. Its equity rose with global markets, but its bonds lost value, including the 9.8% held in UK gilts, as gilt prices fell 2.8%. The two largely cancelled each other out, so the plan ended the quarter returning 1%.

Preserve Plan

The Preserve Plan is a short-term money market fund managed by State Street. It’s for savers who want less risk in exchange for lower potential returns.

Performance in Q3 and so far in 2026: Before fees, the plan returned 1.0% between 1 July - 30 September 2026, and 2.9% between 1 January and 30 September 2026.

What drove Q3: Money market returns broadly follow short-term interest rates. With the Bank of England base rate at 3.75%, the plan returned 1% in Q3 and was largely unaffected by the fall in gilt prices.

How did global stock markets perform in Q3 2026?

Most major stock markets rose, led by the UK. Europe ex-UK and Asia ex-Japan fell.

Global stock market performance in Q3 2026 (1 July-30 September), in each index’s reported currency. Source: MSCI, FTSE Russell, S&P Global, as at 30 September 2026.

UK: energy and housebuilders lifted the FTSE 350 by 2.4%

The FTSE 350 rose 2.4% in Q3 2026. Technology makes up just 2.4% of the index, which is dominated by the financial and energy sectors, consumer staples and industrials. That left the UK largely untouched by swings in AI stocks.

Energy did the heavy lifting. Shell returned 21.7% over the quarter as the Iran conflict kept pushing oil prices higher.

Housebuilders rallied late in the quarter. In September, Prime Minister Andy Burnham announced the “Your First Home” scheme, which is only open to new-build homes. Persimmon rose 25% and Barratt Redrow 18%.

US: the S&P 500 rose 2.3% and hit record highs

The S&P 500 rose 2.3% in Q3 2026 and reached several all-time highs. Strong company earnings supported the market, and energy, technology and healthcare sectors all delivered positive returns.

That came despite doubts about hyperscalers' AI spending and the Federal Reserve’s September rate hike for the first time since 2023, which made borrowing more expensive for the large tech companies funding AI.

Japan: FTSE Japan rose 2.0% on strong earnings

The FTSE Japan index rose 2.0% in Q3 2026 (in JPY), helped by the strongest corporate earnings in five years. Gains were also more spread out than usual.

Japan’s market has traditionally been led by exporters, but this quarter investors also bought domestic healthcare, consumer staples and technology companies. Utilities were the exception, falling as the Middle East conflict pushed up energy costs.

Asia ex-Japan: MSCI Asia ex-Japan fell 0.2% 

The MSCI Asia ex-Japan index fell 0.2% in Q3 2026 (in USD). Gains in Taiwan and China were offset by a sharp fall in South Korea, which makes up roughly a fifth of the index. Korea’s KOSPI fell 19.3% over the quarter, its steepest decline since 2020, after leading global markets for much of the year (KOSPI data via Google Finance).

The fall was driven by a sharp selloff in chipmakers Samsung Electronics and SK Hynix in July, as investors feared AI spending might not pay off in the near term.

Leverage made it worse. In late May, Korea launched single-stock leveraged exchange-traded funds (ETFs) for the first time, designed to deliver twice the daily gain or loss of Samsung and SK Hynix stocks. Retail investors put around $9.4 billion into them in under two months.

When the chipmakers took a hit, these ETFs lost far more than the stocks themselves. Between late May and July, Samsung fell 15% and SK Hynix 18%, while the leveraged funds tracking them fell 40% and 49%. “High risk, high return” cuts both ways.

Europe ex-UK: MSCI Europe ex-UK fell 1.9%

The MSCI Europe ex-UK index fell 1.9% in Q3 2026 (in EUR), making Europe the weakest major developed market. Europe was particularly exposed to higher oil prices, which raised inflation and interest rate expectations. In response, the European Central Bank (ECB) raised interest rates in September, its second hike of the year.

Dutch chip equipment manufacturer ASML fell 7.2%. Trading at more than 50 times earnings, it was hit by July’s global chip selloff and by rising rates, which reduce the value investors place on future growth.

Nestlé, the world’s largest food and drink company, fell 7.1%. High coffee and cocoa prices weighed on its first-half earnings, triggering its biggest one-day fall since 2020.

How did UK bonds perform in Q3 2026?

UK government bonds (gilts) fell 2.8% and sterling corporate bonds 2%, as oil prices revived inflation fears.

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At 30 September 2026, bonds made up 16% of the 4Plus Plan, and UK gilts 10% of the Tracker Plan.

Why did UK gilt yields rise in September 2026?

Yields climbed ahead of the Bank of England’s 17 September rate decision, then jumped in late September when US President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz. The 2-year gilt yield closed the quarter at about 4.9% and the 10-year gilt yield ended at 5.4%, near multi-decade highs.

What do rising gilt yields mean for my pension?

Rising yields lower the value of bonds a plan already holds but raise the income new bonds pay.

If your plan holds bonds (such as the 4Plus or Tracker Plans), the bond portion of your pot fell in value in Q3 as yields rose. That’s why these plans returned less than our all-equity plans this quarter.

• Over time, higher yields mean the bonds a plan buys pay more income, which can support future returns.
• If you’re approaching retirement and thinking about an annuity, annuity rates tend to rise when gilt yields rise, because insurers price annuities using gilt yields.
• If you’re in the Preserve Plan, money market returns tend to rise with short-term interest rates.

One quarter is a short time in pension investing, and markets have weathered many periods of uncertainty before. If you’re unsure what’s right for you, MoneyHelper offers free, impartial guidance, including Pension Wise appointments for people aged 50 and over.

What to watch in Q4 2026

Two big events land in the coming weeks: the UK Autumn Budget on 28 October and the US midterm elections on 3 November 2026. Investors are watching both for signals on government fiscal policy.

• UK Autumn Budget, 28 October 2026: plans for government borrowing could move gilt yields.
• US midterm elections, 3 November 2026: the result could shape US fiscal policy.
• Bank of England rate decision, 5 November 2026: whether the Bank raises rates after holding at 3.75% in September.
• Oil supply chain issues and the Strait of Hormuz: further oil price moves would affect inflation expectations and bond prices.

Frequently asked questions

How have PensionBee’s plans performed in 2026?

All six plans delivered positive returns in the period to 30 September, before fees: Shariah 17.1%, Global Leaders 15.3%, Tracker 11.4%, Climate 10.8%, 4Plus 8.3% and Preserve 2.9%.

Which PensionBee plan has performed best in 2026?

The Shariah Plan, with 17.1% to 30 September 2026. Each plan’s performance is shaped by a combination of factors including asset mix, market conditions, and its investment style, so our plans' returns aren’t a like-for-like comparison.

Why did my pension only grow slightly in Q3 2026?

Markets slowed after a strong first half. Most stock markets rose around 2% in Q3, and UK bonds fell, which held back the plans that held bonds. PensionBee’s plans returned between 1% and 2.2% in Q3.

Why did UK gilts fall in Q3 2026?

Rising oil prices revived inflation fears, and investors expected tighter interest rate policy. Gilt prices fell as yields rose, and the Bloomberg Sterling Gilts Index lost 2.8% over the quarter.

Does one quarter’s performance tell me much about my plan?

No, for long-term investments such as pensions, it's essential you look at performance over much longer time periods. This is why we include both the year-to-date, and  3- and 5-year figures in this blog, to give a fuller picture. Past performance isn’t a guide to future performance.

Have a question? 

Learn more about the top 10 holdings in your pension fund, see how your money is invested on our Plans page, or log in to your BeeHive to see your plan. You can send comments and questions to our team at engagement@pensionbee.com.

Risk warning

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

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