Find out what you can do to ensure your retirement plans have the best chance of remaining on track.

How Open Banking is serving our customers

Find out how Open Banking is simplifying finance and what's next for this new technology.

Open Banking has been around for some years and it’s likely that it’s here to stay. This new technology has benefited more than 4 million people in the UK and is expected to reach 40 million by 2024.

So what exactly is Open Banking - a technology used by more and more people, even if they’re not aware of its existence?

A bit of history

The UK introduced an Open Banking Standard in 2016 to make the financial industry work harder for the benefit of its customers. The Standard was introduced to regulate and protect customers’ data.

Since the introduction of the regulations, the UK government and the Competition and Markets Authority (CMA) have set deadlines for the largest banks (including Barclays, HSBC Group, Lloyds Banking Group and Natwest Group) to adhere to these new standards.

So what exactly is Open Banking?

Open Banking is a technology that allows customers to share their data securely between financial institutions. The data is shared via APIs (Application Programming Interfaces), which is a secure technology that requests and sends data with the customer’s consent.

Whilst data sharing is one of the most important features - and benefits - of Open Banking, another big one is payment initiation. Simply put, payment initiation means that instead of having to log into your bank account to make a payment, another company can direct you straight into your bank account to confirm or reject a payment request.

Payment initiation is not only a big time saver, but it also prevents human mistakes when it comes to typing out the recipient’s bank account details.

What’s the benefit for you?

By sharing customer data, financial institutions are able to offer more suitable and tailored products to the specific needs of individual customers.

For example, a Starling Bank customer that wishes to become a PensionBee customer, could consent to Starling sharing their data with PensionBee in order to open a pension. After an account has been created, the customer could allow PensionBee to share their pension balance with Starling so they can view it from their Starling app, alongside their bank account balance.

Sharing data in this way can also mean that customers with a short credit history could still be eligible for credit, as the lending company would be able to view their spending history using their bank account data.

Some companies, like Snoop, also offer data aggregation, where they can show all your financial data from different bank accounts and other financial products in one place. This provides a clearer picture of your financial health, and allows the company to make recommendations based on the full picture of your finances.

Payment initiation offers time saving benefits to customers as well as being more secure, meaning that there’s less chance for error in the set up of payments.

How do we use Open Banking at PensionBee?

Saving into a pension is key to meeting your retirement goal. At PensionBee, we try to make saving towards your future as simple as possible, to help our customers enjoy a happy retirement. That’s why we’ve partnered with Plaid to enable payment initiation services (PIS) for our customers.This allows customers to set up contributions into their pensions without leaving their PensionBee app (available from Apple App Store and Google Play). Rather than typing out card numbers or setting up Direct Debits, we’ve enabled a smooth, quick and safe journey that takes less than a minute.

Payment initiation was the first milestone on our Open Banking journey and we’re excited for what else is to come!

What’s next for Open Banking?

As you can see, Open Banking is all about sharing data and requesting payments in a secure and efficient way. This technology has evolved very quickly and will likely continue to do so in the coming years. It’s a legitimate question to ask ourselves what we can expect to see next.

Many companies in the financial services industry are not yet using Open Banking to its full potential. And we’ve highlighted the way this technology works and how we use it at PensionBee.

At the core of Open Banking is the value of secure data sharing. It is now on banks and other financial institutions to find creative, innovative and useful ways to utilise that data for the benefit of their customers.

Financial institutions will need to put the customer at the heart of their businesses and development in order to make Open Banking a success!

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.

What happened to pensions in November 2022?

Find out how the performance of your pension plan is directly impacted by the performance of its investments.

This is part of our monthly pension update series. Catch up on last month’s summary here: What happened to pensions in October 2022?

Markets have journeyed through choppy waters this year. In fact, over 87% of the S&P 500’s trading days in 2022 have endured swings of 1% or more. Between energy and food shortages as a result of the conflict in Ukraine, and supply chain issues from China’s manufacturing shutdowns, the perfect economic storm was born. The pressure of these supply chain issues has been felt intensely on the price of these commodities. In turn, inflation has risen as have interest rates.

The unpredictability of evolving global economic conditions led to many central banks, and investors alike, feeling lost at sea. Finally, recent weeks have revealed the direction of travel as the UK economy’s officially in recession, with many other European countries expected to follow suit. As we sail into 2023, will markets find a safe harbour for an economic recovery, or will next year be an encore of this year’s volatility?

Keep reading to find out how markets have performed this month, and how next year may impact your pension balance.

What happened to stock markets?

November has been a favourable month for investors, despite the current ‘bear market‘ environment. While movements in stock markets are often caused by business performance and political climates, a less tangible factor at play is confidence. Following months of variability, confidence has been in short supply creating a bleak outlook for investors.

What’s changed? The fog of uncertainty’s lifting, as central banks are expected to make smaller interest rate increases in future announcements. This slower pace has given rise to economic commentators anticipating when inflation and interest rates may peak. While the factors influencing market volatility continue, optimism, at least, is emerging.

In UK stock markets, the FTSE 250 Index rose by over 6% in November, bringing the year-to-date performance close to -19%.

Source: BBC Market Data

In European stock markets, the EuroStoxx 50 Index rose by over 9% in November, bringing the year-to-date performance close to -8%.

Source: BBC Market Data

In US stock markets, the S&P 500 Index rose by almost 6% in November, bringing the year-to-date performance close to -15%.

Source: BBC Market Data

In Asian stock markets, the Hang Seng Index rose by over 18% in November, bringing the year-to-date performance close to -19%.

Source: BBC Market Data

What’s the outlook for 2023?

The global economy’s looking weak going into 2023. Fortunately, global inflation is expected to peak in 2022. Recovery from this post-coronavirus economic crisis will move unevenly, with some countries and industries progressing faster towards growth than others. Goldman Sachs predicts companies in consumer goods, energy, and medicine will manage to grow due to their natural immunity against inflationary pressures on household spending.

Looking outward at global economies, the US (where the majority of pension equity is invested) is well positioned to be resilient and evade the recession that Europe’s entering. Even smaller economies are signalling hopeful returns in 2023, including emerging markets like Brazil. The long-awaited reopening of China should bring relief to manufacturing dependent industries. In short, it’ll be a bumpy ride back to the highs of late 2021.

As supply chains recover and inflation cools down over the course of next year, the fortunes of companies will be a mixed bag. Investors should heed a reminder about the importance of a well diversified portfolio to weather this volatile environment. The good news is that opportunistic investors may enjoy this prolonged sale on quality company shares.

Summary

We’re currently in a bear market. The good news is global markets have recovered from every bear market in history. Moreover, the value of most global markets not only recovers, but typically goes on to reach new highs. Even the biggest market crash since the Great Depression, the 2008 global financial crisis, was followed by the longest period of sustained growth in market history until the coronavirus pandemic struck markets in 2020.

As a general rule of thumb, when markets are down, company shares become more affordable to investors. Putting your pension under a microscope, you’ll see that you probably own a very small percentage of many of the world’s largest and most successful companies, like Apple and Microsoft. When company shares have reduced in value, the same level of contributions can buy more shares. If you’re able to, consider adding to your pension pot to grow your pension in the long term, as purchasing shares below their average price could give them more opportunity to grow.

You may find yourself rethinking your pension savings during the cost of living crisis, or worrying about whether you’re making the right choices. PensionBee customers can have peace of mind knowing that our pension plans are being managed by some of the world’s biggest money managers. Again, it’s worth remembering that it’s normal and expected for pensions to go up and down in value over time. If you’re over the age of 50 and are considering your retirement options, you may benefit from a Pension Wise appointment. You can book your free appointment online.

This is part of our monthly pension update series. Check out the next month’s summary here: What happened to pensions in December 2022?

Have a question? Get in touch!

You can check out our Plans page to learn how your money is invested in different assets and locations. You can always send comments and questions to our team via engagement@pensionbee.com.

Risk warning

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What do self-employed pensions look like post-COVID?

Post-COVID, people are increasingly looking for ways of working that complement, rather than compete with, their lifestyle outside of employment.

This article was last updated on 12/02/2024

The COVID-19 pandemic changed working and personal lives for many of us, including the self-employed who might now be thinking differently about their financial security and long-term goals compared to before.

Post-COVID, people are increasingly looking for ways of working that complement, rather than compete with, their lifestyle outside of employment.

Examples of this include:

The ‘Great Resignation’, which has seen employees choose not to return to the positions they held before the pandemic, instead pursuing new paths, including self-employment.
The ‘quiet quitting‘ movement, where employees adopt a ‘work to rule’ practice instead of working overtime, unpaid.
An increase in people looking to work from anywhere in the world, and become digital nomads, as working from the office, or indeed from home, becomes a thing of the past.

For many that are self-employed, their personal life and business can often be tightly intertwined, and shouldering all the responsibility to generate an income can leave little time to enjoy pursuits outside work, or plan for the future. If this sounds all too familiar, read on to discover some key long-term considerations that shouldn’t be overlooked.

1. Impact of delaying retirement savings

Inconsistent and variable income can cause many self-employed people to delay setting up and paying into a pension – without realising how much this can cost at retirement, stealing away dreams of retiring comfortably or early.

The difference of waiting just a few years can be huge, and the effect is bigger the longer you wait to start contributing to a pension.

This can mean having to work much longer than you wanted, or intended to, before retiring. Or, having your lifestyle curtailed later in your working life as you increase pension contributions to make up for lost time, in order to still achieve the lifestyle you desire in retirement.

Unbiased, has created a calculator to show the impact of delaying contributing to your pension. For example, starting saving at 30, with a retirement age of 65, investing £100 a month gives a potential future value of savings of £141,745.

Delay this by just five years and this falls to £100,562, a drop of £41,183. Wait 10 years and the difference is even more stark – falling to £69,787, making your retirement pot smaller by £71,958.

The cost of delaying retirement saving by 15 years is truly colossal. The £100 a month from age 45 will, by retirement, leave you with just £46,791, a huge £94,954 less compared to starting pension saving at age 30. But, starting late is still much better than not starting at all.

2. Consider how much you need to retire

Self-employed people are typically not paying into a pension. According to government data, only 16% of self-employed people are paying into a pension compared to 88% of those eligible for Auto-Enrolment through their employer.

Though still a tax efficient way of saving, there may be less of an obvious incentive for self-employed people to pay into pensions because they don’t receive employer contributions. And without nudging from an employer, those that are self-employed may not be as aware of how much they really need to retire.

Figures based on research by the Pensions and Lifetime Savings Association (PLSA) outline that the minimum needed for a single person is:

£13,400 a year for a basic retirement with a few luxuries
£31,700 a year for a moderate retirement with a few more luxuries
£43,900 a year for a luxury retirement filled with holidays

The earlier you wish to retire, the bigger the initial pension pot you’ll need in order to stretch that over the 10, 20, or even 30 years of paying for your lifestyle post-work. For example, a ^{_threshold_income} pension pot may sound a lot but in reality it’ll only provide just over 18 years at a basic level of retirement income, and less than 10 years of a retirement of moderate luxury.

Knowing roughly how much you’ll need in retirement is the crucial first step, following that, keeping your self-employed pension on track is just as important.

3. Think about retiring later

Whether you started saving into a pension later in life and could benefit from more time for the money to grow or, you’ve seen your existing pots decrease in value due to cost of living crisis and other factors, delaying retirement for a few years might mean you’re financially better off in the long-term.

Delaying your retirement‘s a difficult decision to make and continuing to work as you get older may seem daunting, and perhaps disappointing, as you’ve worked and saved hard for many years.

If you’re unsure whether you need to retire later than planned and are a PensionBee customer, you can log in to your account and use our retirement planner to help estimate how long your current savings pot might last you.

While you may want to delay retirement for financial benefit, it might not be possible for you to continue working. The important thing to remember is that you’ve got options, whether that’s delaying claiming your State Pension, choosing to alter your personal pension contributions or opting to draw down your pension.

Key takeaways

Self-employed people may never think it’s the ‘right time’ to start pension saving, but delays may significantly reduce their final pot size.
Curious how much you need a year in retirement? See the PLSA’s income standards.
Think about your options - retiring later or delaying claiming State Pension could help ensure you’re financially better off in the future.

Laura Miller is a freelance financial journalist.

Risk warning

My pension balance has gone down, where has the money gone?

Discover how the performance of your pension plan's impacted by the performance of its investments.

Seeing your pension balance go down can be alarming, even if you already understand that with investments, your money moves around daily depending on what’s happening in global stock markets. When staring at your balance screen you may wonder where has my money gone? Is the loss purely from market volatility?

So, what’s going on and should you be concerned?

How does investing work?

Simply put, investing is buying assets with the aim of generating positive returns. When you invest, you’re purchasing an asset at one price with the hope that same asset will increase in value over time, and create a profit when sold. However, there are no guarantees with investments. In broad terms, owning anything from artwork to property to shares in a business can be considered an investment.

Buying a property for £165,000 in 2012, and selling it six years later for £225,000 in 2018 would be seen as a successful investment, as it produced a ^{_annual_allowance} profit. Whereas buying a Damien Hirst painting for £30,000 in 2008, and selling it a decade later for ^{_isa_allowance} in 2018 would be an unsuccessful investment, as it lost ^{_money_purchase_annual_allowance} in value.

Whilst there’s no crystal ball when it comes to investing in ‘real’ assets (such as property), there is more guidance when it comes to ‘financial’ assets (such as your pension), as we’ve got lots of historical data to point towards when considering how these may perform over time.

Although a single investment (like a painting or a property) may fail to create a profit, spreading your money across different investments may reduce your overall risk of investment failure. That’s why diversification of your investments is so important.

Diversification is a strategy of investing your money in a mix of assets. Most pension funds contain a mixture of different types of investments such as bonds, property, cash or company shares, all batched together in a plan, for easy and cost-effective investing.

How do pension investments work?

PensionBee pensions (like all pensions) are made up of units. That means when you invest, by transferring old pensions or making contributions, you buy units in your chosen pension plan. If you own 100 units in your plan and each unit is worth £1.25, then your pension balance is ^{_lower_earnings_limit}.

Once a day, on weekdays, we get an update from your money manager with the updated unit price. The unit price changes every day and reflects the performance and value of your plan on that day. The unit price is made up of the value of the underlying company shares in the plan eg. if the value of Google falls and you are invested in an index that includes Google, this impacts the unit price of the plan.

So, if the unit price drops to £1.10 and you have 100 units, your pension balance becomes £110. Remember, unit prices go up as well as down, and reflect the health of the market on any given day. The principle is, that if the value of the underlying companies you’re invested in fall, then the value of your plan falls. Where the money ‘goes’ is that your portion of that company has decreased in value and the value of the unit price goes down with it.

Is there an impact to not investing?

In 2022, a mixture of geopolitical struggles, high inflation, and supply chain issues created the perfect storm of market volatility, which impacted both company shares and bonds. Consequently, the value of your units in 2022 may have gone down. As this is a global issue, transferring to another provider won’t recover your market losses.

It’s important to remember that the value of your pension will go up again, when the markets recover. Choosing to withdraw your money when your balance is down might seem tempting, but if the unit prices improve after you’ve taken your money out, reinvesting your money into your pension would cost you more, as prices would be higher.

Also, as inflation erodes the real value of cash over time, investments like pensions still prove to be a competitive choice against the rising cost of living.

Should I do something?

Withdrawing your money won’t recover losses. Money invested may see recovering markets so, if you can, prioritise using rainy day funds before realising losses on your investments. Those are the key takeaways to navigating market volatility.

As strange as it may sound, contributing to your investments when markets are low can be cost-effective. Adding £100 when markets are down will usually buy you more units than when markets are up, when unit prices are more expensive.

Again, it’s worth remembering that it’s normal and expected for pensions to go up and down in value. And it’s expected that they’ll recover and grow further in the future. If you’re over the age of 50 and are considering your retirement options, you may benefit from a free Pension Wise appointment. You can book your appointment online.

Risk warning

Do I need to change my pension after I get divorced?

Major life changes, like divorce, can provide a good reminder to look again at your finances and longer-term financial plans.

What happened to pensions in March 2022?

Find out how the performance of your pension plan is directly impacted by the performance of its investments.

This is part of our monthly pension update series. Catch up on last month’s summary here: What happened to pensions in February 2022?

After a rocky start to the year, stock markets stabilised and even grew in some regions during March. So it’s likely that your pension experienced some growth as a result.

But there are two important things to bear in mind as we move into April:

A recovery in March doesn’t mean this will continue in April
There are still lots of economic challenges that need to be resolved

Thankfully, your pension is a long-term investment that isn’t reliant on things being good all the time - as tempting as it can be to check in on your balance each day. So long as the global economy continues to grow in the long-term (which it always has, historically) then your pension should return to growth once the current short-term challenges have resolved.

The current challenges affecting pensions

Right now, several things are causing challenges to the world’s economy.

First, there’s Russia’s ongoing invasion in Ukraine. This has caused all sorts of problems, from the rising price of food staples like wheat, to the price of energy spiking as Europe attempts to wean itself off Russia’s oil and gas. Unless a peace deal is struck soon, it’s uncertain when these costs may fall again, as the world’s supply chains adjust to make up for the shortfall.

Then there’s inflation - or the rising cost of goods and services - which was increasing even before the invasion in Ukraine. In effect, it means that the cost of doing business goes up and the money people have to spend on non-essentials goes down. Stock markets don’t like this, because it means that many businesses are likely to make less money. However, central banks like the Bank of England have started to raise interest rates in an attempt to slow the rise of inflation. And the Office for Budget Responsibility thinks that the cost of goods will start to go down again from the start of 2023, which would be good news for stock markets.

The world is also still dealing with the effects of the pandemic. And some countries aren’t necessarily over the worst of it. The Chinese government put its largest city, Shanghai, on lockdown in March, causing economic disruption to millions of people and factories. Car manufacturer BMW closed its plants in Shenyang as a result of pandemic controls. As the world’s major supplier of manufactured goods, China’s restrictions are being felt around the world.

As a PensionBee customer, you can rest assured that your pension plan is being managed by one of the world’s leading money managers: BlackRock, HSBC, Legal & General, or State Street Global Advisors. They’re all experts at navigating challenges such as these, and design and adjust your investments based on your pension plan’s goals.

What happened to the markets in March?

March saw some major stock markets recover from their February falls, while China’s main market fell as pandemic controls subdued their economy.

In the UK, the FTSE 250 rose by nearly 4%.

Source: Google

In the US, the S&P 500 rose by over 5%.

Source: Google

In China, the SSE Composite fell by nearly 7%.

Source: Google

The price of gold fell by 0.5%.

Source: Business Insider

This is part of our monthly pension update series. Check out the next month’s summary here: What happened to pensions in April 2022?

Have a question? Get in touch!

You can check out our Plans page to learn how your money is invested in different assets and locations. You can always send comments and questions to our team via engagement@pensionbee.com.

Risk warning

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E5: The cost of living crisis - with Clare Reilly, Lynn Beattie, and Scott Mowbray

In this episode Clare Reilly, Chief Engagement Officer at PensionBee, Lynn Beattie, Managing Director of Mrs Mummypenny, and Scott Mowbray, Co-founder and Chief Communications Officer at Snoop, discuss the cost of living crisis.

The following is a transcript of our monthly podcast, The Pension Confident Podcast. Listen to Episode 5 here, or watch on YouTube. Scroll on to read the conversation.

PETER: Hello, and welcome back to PensionBee’s Pension Confident Podcast. I’m Peter, your host, and unless you’ve been under a rock for the past couple of months, you’ll know that there’s something called the cost-of-living crisis going on right now. So this month, we’re going to be talking about the squeeze, why it’s happening, when it will be over, and of course, how your pension fits in because it does.

Music starts

The new tax year is upon us and the chancellor gave us his budget last month. The big takeaway was that the government can’t do as much as we’d hoped to protect us from surging prices. So I’m joined by three guests, experts in their fields who are going to help us understand what’s going on with inflation, how it’s going to impact us moving forwards, and how we can future proof ourselves financially, even whilst we’re in the middle of it. So we’ve got here Clare Reilly, who is PensionBee’s Chief Engagement Officer. Hello, Clare.

CLARE: Hi, Pete. Hi, everybody.

PETER: And I’m also joined by Lynn Beattie, who is a personal finance expert and author of The Money Guide to Transform Your Life.

LYNN: Hi Peter. Thanks for having me.

PETER: And lastly, I have with me Scott Mowbray, who is the co-founder and Chief Communications Officer at Snoop, an app that helps you save on your energy, broadband and mobile phone bills.

SCOTT: Hi, everyone. Thanks for having me.

PETER: Now, just as a reminder, on the podcast, anything that you hear here should not be taken as financial advice. Obviously, when you are investing, like you would do with your pension, your capital is at risk. Right. So we’re going to come on to inflation in a moment. But first and foremost, I want to start with Clare. Russia’s invasion of Ukraine has obviously had an impact on global markets. Do you have an update on that for PensionBee customers currently?

CLARE: Yes. So if you’ve been reading our blogs, you’ll know that PensionBee plans have close to zero investment or direct investment in Russia. But if you’ve been checking your balance recently, you’ll also see that your balance is moving around more than normal. And so the wider implications of war are impacting all pensions, as markets react to the news of the war, they react to the twists and turns in peace talks and of course, you know, that global supply of goods coming out of the region is severely impacted as well. But, you know, to put it into context, when big shocks happen such as war, such as the pandemic, stocks, which we refer to commonly as equities, they’ll respond almost immediately.

So when Russia invaded Ukraine on the 24th February, typical global equity stocks dropped by about 1%. They lost about 1% in their value compared to the day before. But if we think about how the market reacted to the pandemic, those same global stocks would have dropped about 9% in one day when we first heard news from the UK government that we had to cease all contact and non-essential travel. Obviously, if you are close to retirement, and you have plans to access that money in the short term, it can be pretty anxiety-inducing to watch your balance swing about, but we have to remember that fluctuations are normal behaviour for equities. And you know, we can expect their value to go up and down in the short term. So even though global equities have gone down this year, by like 3.5%, if we think about what’s happened over the last three years, they have consistently gone up ^_basic_rate each year over the last three years. So we need to put it into a bigger context and of course, you know, even though we’ve got these bumps in the road now with your pension, you know, it’s important not to overreact to the kind of short term market shocks like these.*

And I should add there as well that if you do have any questions about your plan, then please feel free to contact the PensionBee team by using the website live chat, or you could just email the team at engagement@pensionbee.com. So that’s engagement@pensionbee.com.

Figures estimated based on the performance of the MSCI World (GBP) provided by State Street Global Advisors as at 31 March 2022. Figures are subject to rounding.

Cost of living crisis

PETER: Now, if you’ve noticed the cost of your shopping going up more than usual over the last year, you’re not imagining things. Inflation, that’s the rate at which the cost of things goes up each year was over 6% in the 12 months to February this year. That’s as high as it’s been since the 90s. Lynn, I’d like to start with you on this one. It’s been a very intense few years for the economy. So there’ll be a lot of listeners who will be worrying about how high prices could get. I mean, we’ve all heard the reports about people having to choose between heating their homes and buying their groceries. Could you give us some context around where we are right now in comparison to say, 1970s or so, because we have been here before with inflation?

LYNN: Yeah, we have been hit. Well, we’ve been in a worse place with inflation and interest rates. Is it going to go back to as bad as it was then, who knows? But yeah, we need some kind of intervention from the government to not let us get back there. But where I - what I feel is quite different to maybe 30 years ago is people’s sort of accessibility to debt. And I really feel like we’re lining ourselves up for a problem in a year’s time, in six months’ time, in two years’ time where we’re going to see astronomical levels of debt and people just not being able to cope and pay back that debt.

PETER: Yeah. Some of the things that happened back then, the 3-day week, energy being rationed, do you think that that is a potential issue that we might face or something that might be introduced? What do you think, Scott?

SCOTT: I don’t think there’ll be drastic measures. I mean, so you know, if you look at the 70s, I just think of glam rock, chopper rally bikes, David Bowie, and the undercurrent in the 70s was - the challenges were incredible. So kind of you started the 70s with the 3-day week, in lieu of this podcast, I was talking to my parents, because I’m not old enough to have grown up in the 70s. I was born in the 70s and my dad was talking about, he worked all the overtime he could do and then suddenly, a 3-day week was invoked and that kind of, you know, cut him at the knees, so to speak, and times are really difficult. So he talked about the kind of interest rates when we left the 70s. I think Margaret Thatcher, you know, when the government controlled setting interest rates it was 17%, as we entered the 80s. It’s a very different set of circumstances, I think. And as Lynn points out, the kind of accessibility to debt - buy now, pay later, credit cards, overdrafts. We are in a different world and it does need a different set of policy interventions. Hopefully not as drastic as we’re kind of talking about here.

PETER: I suppose the big question is, what can we do about rising inflation? We want inflation to go down, but how do we go about doing that Clare?

CLARE: I think it’s important for us to understand a bit more about inflation, like why inflation happens, because I think we’re all seeing the prices go up and maybe people don’t really kind of know what causes inflation. Inflation is rising costs of goods and services. And that happens when you have less supply and more demand, which we have right now at the same time. So we’ve got less supply, because some parts of the world are still dealing with the pandemic. So across China, we’ve got new lockdowns, factories just are not able to produce at the same rate. We’ve also got sanctions on Russia so you’ve got that whole global supply chain impacted of goods coming out of that region. And then of course, I think, even with the pandemic, you know, global supply chains haven’t gone back to what they were.

So that’s happening on one side, and then on the other side, you’ve got the rest of the world coming out of the pandemic, wanting to just resume all of their regular spending, having been locked up for two years. And so you’ve got that huge demand, weak supply and that’s what’s causing prices to go up. And as well, the problem with this war, and everything that’s going on, is it kind of creates this sentiment of scarcity as well. And that scarcity plays into the prices. And so I mean, well, how do we reduce it? I mean, so you either need to produce more, but as I’ve just said, that’s very difficult right now. So one way to control inflation is for central banks to increase interest rates. So you may have seen the interest rates - that’s borrowing costs - have gone up recently.

The Bank of England is helping to plan their spending by setting an inflation rate target of 2%. So raising interest rates at the moment, from 0.5 to 0.75% is going to help bring the rate of inflation down and slow the impact of inflation. So it’s really something to be mindful of when you’re consuming. I mean, not to be all doom and gloom, the Office of Budget Responsibility has said the cost of goods will start to go down again at the start of 2023, which is some good news.

PETER: Yeah. It’s funny, you talked about the correlation between the fact that we’ve just come out of a pandemic. People were locked down, we’ve got the bottleneck with the supplies, and people coming out of lockdown are kind of like spend, spend, spend, because we’ve not been able to do it for a while. I mean, it’s a very, very interesting, kind of dynamic when you look at how inflation works in the real world.

SCOTT: Yeah, I mean, definitely you need a bit of inflation but when it overshoots, it becomes a problem. Deflation is a problem, too, which is why the Bank of England focuses only on one thing, which is their 2% target. And I think you mentioned 6.2% inflation, it’s more than that at the moment. There’s a time lag in the data. And so people, you know, so what we’ve done at Snoop, for example, is said to people, we’ve tried to take them beyond the grim headlines and personalise what their inflation number is. So kind of by looking at transaction data, how much you pay for your bills. I think you touched upon a moment ago, Clare, that kind of the OBR thinks it’s going to hit about 9-1^{_personal_allowance_rate} and then return to normal in 2023. I think that might be optimistic, because also you’re talking about what’s happening in China, severe lockdowns. Who knew that Ukraine was kind of such a big producer and provider of corn? Russia and fertiliser. Farmers are going to struggle and that’s going to feed through, input prices are going to feed through to consumers. Yeah, I mean, let’s hope 2023 is a world which looks more reasonable, normal, affordable, but I think it might be optimistic.

The Spring Budget

PETER: Okay, well, we’ve seen how inflation is increasing the cost of living and the negative impact that’s having on people’s lives. But we need some good news and believe it or not, it could come in the form of tax. After all, tax is one of the biggest levers the government can pull to increase or reduce the burdens on people’s finances and I think a good place to start would be to look at the spring budget, which was announced a few weeks ago. In it, the Chancellor, Rishi Sunak, stuck to his planned 1.^{_corporation_tax} rise to National Insurance. He also raised the income threshold at which people start to pay National Insurance. And he said that he’ll be cutting the basic rate of income tax from ^_basic_rate to ^{_corporation_tax_small_profits} but we’ll have to wait until 2024 for that one. Lynn, is the average family going to be able to cope?

LYNN: So the first problem with the National Insurance thing is, we’ve got a bit of a lag. So we’ve got the 1.25 increase, which is taking effect from right now. But then the change of the National Insurance limit, so it’s gone up by about £3,000. That doesn’t kick in until July, so we’ve got like three months now of people paying more. And also it only impacts certain people, it’s around £35,000- £40,000. If you earn less than that, then you will benefit after July. If you earn more than that, then you won’t. I’m reticent to comment on the change in income tax in two years’ time, because it’s not necessarily going to happen, right? And it’s based on the government meeting quite a lot of targets. I mean, who knows what’s going to happen in six months, let alone two years’ time? So it just felt like a bit of a dangling carrot and close to when there’s an election. Cynical me.

PETER: I watched it almost like, why even - why even mention it now?

SCOTT: Yeah. I mean, we can’t really talk about that now because the cost-of-living crisis is in the here and now. Announcing that in two years’ time doesn’t help anyone at the moment. The measures that he did announce, you know, in part were good, they’re just gonna be nowhere near enough to bridge the gap, basically.

LYNN: It wasn’t - it wasn’t enough. And people were angry after that statement. I sat there watching it thinking, where’s the help for the vulnerable people in the UK right now?

SCOTT: I think what he would say to that, it’s this idea of a household fund, isn’t it? He doubled it from ^{_higher_rate_personal_savings_allowance} million, he put another ^{_higher_rate_personal_savings_allowance} million in that for the most vulnerable. Is that enough? I mean, I think only time will tell.

LYNN: You have to jump through a few hoops to get hold of that money as well. There’s finding out how much your local authority has got, filling in the right forms. It’s like this, this induces a lot of anxiety for people, particularly, you know, the vulnerable, struggling people. They’re sometimes scared of even making a phone call.

PETER: I think the overall sentiment is there needs to be more intervention to really help people to make sure that, you know, people don’t fall into what is, you know, a really, really dire situation.

SCOTT: Yeah, I mean, we’re seeing that at Snoop, right? So this kind of money is really tight for a lot of people and when money is tight, people do turn to credit. People are turning to alternative credit cards, they’ll dip into their overdraft. These are potentially expensive ways to borrow and we’re talking about interest rates that are only heading in one direction at the moment and that’s north, so it will become more expensive. It’s a real problem because it stores problems for the future. People struggling under a mountain of debt. That’s the here and now. There is also a pension implication for that because when there’s no money, you know, there’s no surplus. Your savings will shrink to zero, right? You’re like, “Pension contributions, right? Maybe we need to cut back on those”. So there’s a problem well into the future caused by a cost of living crisis in the here and now. And kind of part of me thinks, you know, we might get to a place where there’s going to have to be interventions to make sure that people aren’t put in an even worse position than they actually need to be.

PETER: Absolutely. And Clare, this leads on very nicely to this point of the fact that when people are feeling the squeeze like they are right now, and let’s face it, it’s not over. I mean, the energy cap increases again later on this year. One of the last things people are going to be thinking about doing is paying into a pension. What would you say to that?

CLARE: I mean, look, it’s so important to invest, if you can. I mean, investments are going to grow faster than salaries and at this time, when we’re talking about the measures, all the measures the government didn’t do, you can still get tax relief on pension contributions and that is still free money from the government. You know, which is not, you know, it’s not very common. And, you know, the worry is, of course, when people see their budgets reduced, they’re having to cut certain aspects of their life. You know, you worry that pension contributions are going to be part of that. But ultimately, you’re going to retire with a lot less. And, you know, missing out on all those additional years of compounding could potentially have a huge impact on your pot in retirement. So it’s something to really think about because, you know, I know a lot of people are in survival mode, but you’ve also got to think about the long term as well.

Tax talk

PETER: Yeah, I mean, I did read the response that you guys put out to the spring budget. I guess underwhelmed is kind of the overarching thing that you guys thought. But I guess on the tax side of things, whether there are any other, I guess, benefits when we talk about pension specifically, that can help people move forward?

CLARE: Yeah, I mean, so some of the tax cuts, you know, that you will see, we would suggest that you put those in your pension. And if you’re going to put, I think there were tax cuts, really about £300 a year. If you put £25 pounds a month in your pension, you know, ultimately, if that compounds over time by retirement, that could mean £15,000 extra in your pension. So there are little things you can do. So while there was nothing, you know, directly about pensions, there are savings that you can put back into your pension as well. On the state pension, I mean, we, you know, before the budget, the announcement was made around the state pension and around inflation. You know, so he confirmed that the state pension would rise with the rate of inflation, but it was based on last year’s inflation figures. So you know, so this April, it’s rising by 3.1%. But we know that inflation this year is going to go to around 9%. So, you know, that shortfall should have been addressed to limit the impact on people who are retiring at the moment and who are going to be living in retirement poverty in 2022.

PETER: So I think the main takeaway there is that tax relief will boost your pension contributions, and generally the long term impact that it has on your retirement planning.

CLARE: Yeah, so the delightful thing about pension tax relief is that the government is paying money back to us, which is not something to be sniffed at in these times. So tax relief, and pensions works like this, you get a tax top-up on contributions up to £40,000 or 10^{_personal_allowance_rate} of your salary, whichever is lower. Basic rate taxpayers will have tax relief claimed on their behalf by their employer, or by their pension providers. So Pension Bee, for example, does that for you, and that tax top-up is worth ^{_corporation_tax}. So for every £1 you put in your pension, it actually becomes £1.25. So that’s very simple. Now, if you’re a higher or additional rate taxpayer, you actually get tax relief. But you need to go and claim that yourself, so it’s totally up to you to do that and you have to do that through your self-assessment tax return. Now, that is something we know that people find overwhelming or daunting, or they’re not interested in doing because as a little bit of tax trivia, we discovered that 1.5 million higher earners do not claim that additional tax relief on their pensions, and they are leaving £2.5 billion unclaimed on the table as a result from the government.

PETER: And I’m wondering, Lynn, are there any other forms of savings or investments that might be able to match that kind of benefit?

LYNN: It’s this debate I am often having in my mind, and I have with a lot of people. It’s: where’s the best place to put your money? So it’s almost going back to this - should I put some money into an ISA? Should I ever pay my mortgage? And when you look at it all mathematically, I’ve got a maths degree so this is how I look at things, there isn’t anything that matches it. Even when you look at - you might get good returns on a Stocks and Shares ISA comparable to a pension, but you have to contribute to that Stocks and Shares ISA after you’ve paid some tax. But then there’s also psychological sides as well and timing impacts. If I think back to when I was in my 20s I didn’t put any money into my pension in my 20s because I just felt like the future was too far away. But then when I got into my 30s and 40s, my mindset changed dramatically. But then I’ve lost out on sort of the compound of those pension contributions. So there’s nothing that can compare to a pension.

Money management tips

PETER: I mean, I think when we talk about tax relief for pensions, I think it’s music to the years of anybody who’s got that extra cash to be able to put into a pension. But of course, money isn’t going as far as it could. And this is where I’d love to ask, you know, yourself, Scott and Lynn, around, you know, what are your - do you have any tips to help people actually cope with where we find ourselves right now?

SCOTT: Well, the starting point is, it’s going to be difficult. Money and income is a difficult topic because it kind of - it looks different to everyone. Those on the lowest incomes, what they need to do will look quite different to what I would describe as the squeezed middle and so you know, if you think of the squeezed middle - that might be family who are stretched, right? They’ve bought a house and they’ve got a mortgage, which is to the limits of what they could pay. They might have two cars in the drive and they might need those. A family that looks like that is very different to those on low incomes. And so that’s why I always start this type of conversation with: you must have a budget. You must know what your finances look like, what’s coming in, what’s going out, what’s left after if anything? And for those that are on lower incomes, if there’s nothing left, you need to go and claim every single benefit you possibly can. £15 billion goes unclaimed and this just kind of - but in terms of kind of general, I think Kirstie Allsopp, she got into a bit of a muddle recently, because it’s like, “Get rid of Netflix and then you’re alright, Jack”. There was a massive backlash on social media. But kind of, I think the principal in a way was kind of actually looking at all of your subscriptions. Have you got Amazon Prime? Have you got Netflix? Have you got subscriptions that you don’t use? I think we worked out at Snoop that people spend £640 on subscriptions. And you just know that some of those are going unused. You wouldn’t recognise it from looking at me, I used to have a gym membership a few years ago. A few years ago, a few years ago, the direct debit went to the gym more than I did. Get rid of it.

PETER: Lynn, what do you have any tips in that area to help people cope?

LYNN: Yeah I just think get the best deals on everything possible. Maybe tackle like one thing a day, just so it doesn’t feel so overwhelming and the savings can build up. It can be like thousands over a year. There’s lots of things you can do with your food shop like you can downgrade on brands. Maybe go for supermarket brands. Write a meal plan or go with a shopping list, don’t just pop to your local Co-Op every couple of days.

PETER: Quite a bit. And Clare, do you have any tips when it comes to the pension side of things in general, in terms of everything that’s going on at the moment?

CLARE: Keep up the pension contributions. If you are employed, ask your employer whether you can do salary, or bonus sacrifice to save on National Insurance. I mean, we should all just become savvy and sophisticated consumers right now. We should be doing everything we can. We should be following Lynn, we should be using Snoop, we should be doing everything we can to get every trick and tip in the book out there.

And the one thing I will say - it’s not necessarily related to pensions - but don’t be afraid to ask for help. You know, if you are in trouble, there are so many charities and organisations out there that will really help you if you’re suffering in silence when it comes to debt. There’s Step Change, Citizens Advice, National Debtline. There are so many organisations out there that will know the suffering you’re going through if you’re in debt, and you’re not talking to anyone about it and you’re really, you know, in a bad place. Just Google “Struggling with living costs Citizens Advice”. There will be a webpage that will tell you everything you can do to get support with energy costs, support with housing costs, support if you’re struggling to buy food. There are resources out there, and don’t be afraid to look for them and don’t be afraid to ask for help.

PETER: In kind of rounding this up, I wanted to play a little bit of a game and put you guys on the spot. So if you had the ear of Rishi Sunak, and you just had one minute to share an idea about his tax policy which could be changed to help people right now, what would that be? I’m going to start with you, Clare.

CLARE: Okay, Rishi, I want to talk to you please about the cost of childcare. If you are a parent, you know it is cripplingly expensive and families around the UK are dealing with that right now. So I would like the Treasury and Rishi Sunak to mandate gender-inclusive paid parental leave for all parents in the early stages of a child’s life. And I would like to mandate affordable childcare in the workplace through employer tax incentives so that women have a choice about when and not whether they return to work. And I have an economic argument, because I know the Treasury like those. So basically, there was a study and they said that of the women who were struggling to return back to work, 46% said they were prevented from taking on more hours at work as a result of unaffordable childcare. And that’s about 1.7 million women. So the economic argument is that if those women had access to adequate childcare services, they could increase their earnings by £7.6 billion. £10.9 billion a year, which would generate up to £2.8 billion in economic output per year. There we go.

PETER: What are the answers? Scott?

SCOTT: I think, for me, I would ask the government, Rishi, whoever can make it happen to make it easier for people to claim all of the benefits that go unclaimed, and there’s not necessarily an economic argument that the Treasury would love. But there’s this kind of argument for increasing thresholds in line with inflation, and there’s quite a lag in so many areas in that sense. It would be something called fiscal drag and it’s kind of - the lag is just too deep, I would say in many cases.

LYNN: So I think tax policies can be complicated or can be simple. But the £20 Universal Credit uplift, which has just been taken away, was a really super simple lever that the government could just switch on that would give a chunk of money back to the most vulnerable of our society. Can we put a little bit of money back into the pockets of people that desperately need it?

PETER: Very interesting thoughts there and hey, we don’t know for sure that Rishi doesn’t listen to this podcast. Now, before we go I’d like to say a massive thank you to our guests Clare Reilly, Lynn Beattie and Scott Mowbray. If you’ve enjoyed listening to this podcast, please do rate us and subscribe. Every rating and review helps us spread the word. You can find loads more information about the topics discussed in the show notes. If you’d like to get in touch with any feedback or questions, you can simply send an email to podcast@pensionbee.com or send a tweet to @PensionBee. We’ll be back with another episode next month all about Shariah savings and why it could be a great option for you. As always, keep saving and stay pension confident.

Catch up on episode 4 and listen or read the transcript.

Risk warning

How PensionBee’s plans are performing in 2022 (as at Q1)

Find out the performance of the PensionBee plans at the end of Q1, when compared to the UK and US stock markets.

This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing in 2021 (as at Q4).

The first three months of 2022 saw financial markets experience some of the most challenging moments of the past two years, caused by coronavirus and war-related factors affecting the global economy.

All pension savers will have faced a very uncertain market backdrop during the opening quarter of 2022, as stock markets fell sharply in January. Bonds also declined due to the impact of the current global pandemic, change in the political climate, widespread inflationary pressures and the subsequent rising cost of goods and services, and changes to interest rates.

In fact, with global economies still adjusting to the impact coronavirus has had on supply chains and the shift in consumer spending, Russia’s invasion of Ukraine at the end of February caused global outrage and negatively affected the stock market. Indeed, whenever big shocks such as war happen, company shares (also referred to as ‘stocks’ or ‘equities’) respond almost immediately.

Another financial consequence of the war has been the significant spike in already high energy prices and general commodity prices soaring. This is due to Russia’s importance as a producer of several commodities including oil, gas and wheat, but also due to Ukraine being a key access route for delivering gas to the rest of Europe. This has contributed to a further surge in inflation as well as supply chain disruption.

Bonds have also been negatively affected by higher inflation. One way to control inflation is for central banks to increase interest rates, with the Bank of England being among those at the start of a rate hike cycle. Interest rates are directly linked to bonds, hence when interest rates rise, bonds fall in value. As a result our Pre-Annuity Plan, PensionBee’s only 100% based corporate bond fund, has been highly impacted.

This tumultuous quarter has fortunately come to a close as some major stock markets started to surge in March and are recovering from recent lows. The UK market rose by nearly 4% and the US market rose by over 5%. However, a recovery in March doesn’t mean this will continue in April as there are still lots of economic challenges that need to be resolved. China is still struggling to contain an outbreak of coronavirus in Shanghai despite the longest lockdown in two years, which is keeping most of its 25 million residents confined to their homes. And at the time of writing, Russia and Ukraine are no closer to resolving their conflict through peace talks. Both of these factors will put even more pressure on global supply chains in the months to come.

It’s always important to bear in mind that pensions are long-term investment products and they’re designed to weather short-term fluctuations. Therefore, despite this worrying unpredictability, it’s normal for the value of your pension to go up and down each day as it grows over the long term.

Remember that past performance is not a guide to future performance and this blog has solely been prepared for informational purposes and not with the intent to influence future investment decisions. As with all investments, capital is at risk.

Savers under 50

Plan / Index	Money manager	Performance over Q1 2022 (%)	Proportion equity content (%)^
UK stock market	N/A	2.9%	100%
US stock market	N/A	-4.6%	100%
Fossil Fuel Free Plan	Legal & General	-2.8%	100%
Shariah Plan	HSBC (traded via SSGA)	-4.7%	100%
Tailored (Vintage 2037-2039)	BlackRock	-3.8%	75%
Tailored (Vintage 2043-2045)	BlackRock	-3.8%	88%
Tracker Plan	State Street Global Advisors	-4.1%	80%

Sources: Data is taken directly from the money managers or stock market factsheets. All performance is reported in gross figures. Past performance is not an indicator of future. performance. Capital at risk. These tables do not take account of any fees that may be levied for a particular investment. Factsheets are available here pensionbee.com/uk/plans. Plan performance may vary slightly from published factsheets due to timing differences and other negligible methodological differences. ^Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property and commodities.

Savers over 50

Plan / Index	Money manager	Performance over Q1 2022 (%)	Proportion equity content (%)^^
UK stock market	N/A	2.9%	100%
US stock market	N/A	-4.6%	100%
4Plus Plan	State Street Global Advisors	-2.2%	35%
Tailored (Vintage 2019-2021)	BlackRock	-4.2%	40%
Tailored (Vintage 2031-2033)	BlackRock	-3.8%	63%
Preserve Plan	State Street Global Advisors	0.08%	0%
Pre-Annuity Plan	State Street Global Advisors	-11.5%	0%

Sources: Data is taken directly from the money managers or stock market factsheets. All performance is reported in gross figures. Past performance is not an indicator of future performance. Capital at risk. These tables do not take account of any fees that may be levied for a particular investment. Factsheets are available here: pensionbee.com/uk/plans. Plan performance may vary slightly from published factsheets due to timing differences and other negligible methodological differences. ^Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property and commodities.

Despite the tables above showing the UK stock market performing better than the US one, it’s important to note that the US stock market enjoyed better cumulative results over the past few decades, as illustrated by the graph below. Therefore, a well diversified plan will have exposure to many different countries and is beneficial to long-term investing.

Source: Google

An important note of caution: It’s impossible to forecast what will happen from quarter to quarter, and past performance should never be used to predict future performance.

For our customers who are already in retirement and are perhaps thinking about withdrawing all of their pension, we hope that you will take comfort in the range of plans we have on offer. You may want to consider only drawing down what you need and keeping a close eye on the markets. Our Investment Pathway guide can help you select a plan based on your personal retirement aims. We will continue to keep you regularly updated on what’s happening with your savings and if you have questions about your plan’s performance, or anything else, you’re welcome to get in touch with your BeeKeeper.

This is part of our quarterly plan performance series. Check out the next quarter’s summary here: How PensionBee’s plans are performing in 2022 (as at Q2).

Have a question? Get in touch!

You can check out our Plans page to learn how your money is invested in different assets and locations. You can always send comments and questions to our team via engagement@pensionbee.com.

Risk warning

10 things men need to know about money (and women)

We asked straight-talking financial wellness coach and author Bola Sol to share her views on everything from the gender pension gap to the pink tax and going Dutch!

This article was written by Bola Sol on behalf of PensionBee, leading online pension provider. Bola Sol is a financial wellness coach, podcaster and author of ‘How To Save It: Fix Your Finances’ published by #MerkyBooks in January 2021. You can find her musings about finance and feminism at @Bola_Sol on Twitter.

I bet you think this is a typical feminist article about women wanting equal pay. Well you’re in for a treat because I’ll be giving you more than you expect in that arena! Women are told that it’s impolite to talk about money but where has that left us as a gender? You’ve guessed it, at the back of the financial queue. Of course you may think there’s an equilibrium because you have a female manager who is a top earner in your field. Congratulations to her but the rest of us are still playing sink or swim with our finances and fortunately for us, sinking isn’t an option!

You might be thinking, how can I help? After all, you were born into patriarchy, you didn’t invent it. If you want to help, start by reading this article and listening. Women want men to listen actively, not passively, because nothing is going to change if you continue to nod your head and hope someone doesn’t ask you, “What do you think?” which results in you having to say, “Sorry, what was the question again?”. This time, there’s no question, I’m just telling you what men need to know about money in work, relationships and life.

1. Speak up for women when it comes to the gender pay gap

The gender pay gap among all employees was 15.5% in 2020 according to the Office for National Statistics, down from 17.4% in 2019. Since we have a lifetime to go until the gender pay gap closes, women would appreciate it if you started speaking up for us already. Gents, with all the bass available in your voice, why not use it for the good of womankind?

Now more than ever, we need more allies to take the microphone on women’s behalf. A nod or ‘I agree’ at diversity and inclusion events no longer cuts it. This is where you, as chromosome XY come in. When you’re at work and you see a female colleague doing the same job as you but their earnings aren’t matching up, don’t mind your business. This is where women want you in our corner, encouraging us to go and ask for what we deserve. “Could I give you some advice on how to ask for more money?” are the magic words we never hear at work. Let’s leave the “Nice hair/outfit” comments out for a while and trade them in for financial equality. We like our hair and outfits already, thanks. Let’s get to the money!

2. If you ask a woman out, offer to pay for her dinner

When you invite a woman to go out with you, offering to pay for her meal should happen without hesitation. It’s just good manners. And yet, the bill comes and I’ve often been left to wonder if chivalry is all the way dead because you didn’t say, “Don’t worry, I’ve got this”. As a woman I want equal rights but we’re a long way away from it and every time you want to go Dutch, you add to that distance. Women earn less because of the gender pay gap, so men should be offering to pay the difference. After all, your date can always say “no”. I, on the other hand, might not.

3. Women don’t expect you to pay for everything (It’d be nice though)

Alas, we understand that as the economy is struggling, everyone else is too. Hooray! We love a struggle party where everyone’s invited because frankly, it’s better to sit in the mud together than alone. And with the gender pay gap, women are a little more in the mud than men are so personally I’d love it if you’d put your hand in your pocket by about 100% more?!

Just kidding! Take the ‘S’ off your chest, you don’t have to be a hero 24/7 in every way, finances included. Although it’d be nice, it’s not really fair is it? The whole notion behind equality is everyone doing their part on the money side, even though some of us aren’t making as much (the gender pay gap is always on women’s minds). Don’t think that every time a bill comes your way, women will look in the other direction. I only do that on the first date! In all seriousness though, women don’t need nor expect you to cover it all. Take this article as a free pass to run for cover from anyone that’s always expecting you to be the sole provider.

4. Splashing the cash isn’t always ideal

Yes, you’ve read that right. Receiving gifts on a regular basis can make the recipient feel giddy in the beginning. Who doesn’t love surprises?! They’re welcomed, however, somewhere down the line, your significant other needs to be sure you’re not participating in illegal activities to fund your Champagne lifestyle.

Unless you’re a secret billionaire, I wouldn’t want you spending frivolous amounts of money on me at every turn. Why do you wonder? Future, meet security. Security, meet the future. Financial security is attractive and if I’m going to be building a life with you, it can’t be in a shed. No offence to those who live in sheds, but I have property dreams more akin to Grand Designs. Given this desire, a sporadic trip here and surprise gift there is welcome but let’s not throw our future down the drain now.

5. The pink tax is real, and it’s a disgrace

The narrative that women spend a lot of money may be accurate, depending on who you’re talking to, but the pink tax is no laughing matter even when we’re giggling over lunch with our friends. Monzo’s article perfectly depicts how products aimed at women are more expensive than the male equivalents – from clothing to perfume. We know you know because every time you go to pick up a gift for a woman in your life, you’re shocked at the price of our products. And don’t get me started on all the things we’re expected to buy that most men aren’t, from sanitary products to make-up to bikini waxes…\ being a woman is a lot more expensive, period.

6. Don’t be surprised if women don’t jump at the idea of joint bank accounts

Do women fear you’ll run off with the money? Yes, I certainly do! In all seriousness though, don’t run off with our money just because we recorded over the Champions League or something. It was potentially a mistake and we might make the mistake again but that’s not enough of a reason to bolt for the exit with our finances!

While a joint bank account is a transparent way to build up financial trust, and maybe even practical when it comes to mortgage payments and other important bills, it doesn’t mean it’s essential. Women fought hard for financial independence so don’t be surprised if your girlfriend isn’t in a rush to give that up.

A woman not wanting to share a bank account with you doesn’t have a coded meaning unless, of course, you’re raising suspicions and setting off any of these three alarm bells. The first being that you have a gambling problem or addiction we don’t know about. The second is that you have a secret family that you’re funding. The third is a combination of one and two.

7. Women really need you to step up when parenthood arrives

As our body becomes less elastic and we’re changing tops all the time due to milk leakage, we can’t help but wonder if you truly have our backs for life. We join mothers groups and all it takes is hearing one bad story to think, “Could that be me?”. There’s always a woman scorned in the mummies circle who starts her sentence with, “I thought he’d never do that to me either” that makes you wake up in the middle of the night and ask your partner if they still love you.

When you have the emotional side down pat, let’s also address that some mothers are quite keen to return to work and their pre-baby lives so it would be nice if you could share the duties of childcare. That includes the bottle feeds, dropping them to school and cleaning up after them whilst maintaining a household. It’s not so easy, is it? Parenthood is the time where we want you to reassure us that you’re here for us physically, emotionally and financially because frankly, we can’t do it all on our own no matter how many times we sing ‘Independent Ladies’ on karaoke nights. It may be a great song but it’s not the lifestyle most women want.

8. Help women bridge the gender pension gap

Whilst we’re working on raising the next generation and you continue to “work work”, we’re taking career breaks which can feel incredibly daunting because there’s always someone more upbeat and energetic ready to take our position. “Hello. Anxiety, is that you?”

We know that women make up around three quarters of the part-time workforce in the UK, and the combination of lower salaries and long career gaps, with little or no pension saving for years, are a massive disadvantage for women. Call a spade a spade, women are scared of what this means for us and our future. Research from PensionBee revealed the gender pension gap to be as high as 57% in parts of the UK. 57%!

While women are supporting you at home, you can support us financially by topping up our pensions while we’re not working so we don’t end up having to eat baked beans in later life while you dine out on filet mignon. Getting life insurance would also give your partner peace of mind so they know that they’re covered if anything happens. P.S. we’re not plotting anything, we want you here for a long time because we can’t open jars without you!

9. Talk to women about money, and how you feel about it

When it comes to money, men are expected to earn a living without complaining or discussing how they feel. Women talk a lot about how patriarchy sucks for them, but, we get it can suck the life out of you too because of expectations of masculinity. Now, we’re not expecting you to have an outburst of emotions all in one go but know that there’s a safe space in us to have those chats. We promise we won’t hold it against you or use it as a weapon in an argument because frankly, that’s childish.

Do we love you because of how much money you have? Hopefully not. If you’re unsure about the answer then there are so many other conversations that need to be taking place…

We understand that everyone has their own financial plan and love may have not been a prerequisite when you were writing out how you were going to get and keep your affairs in order. Just be straight and let us know, preferably sooner rather than later, if we have different financial goals. Same goes if you followed Elon Musk’s advice about crypto and the returns you’ve seen aren’t exactly what you thought they’d be - women want to know everything!

10. Women want to talk about investing too

Surprise! Women want to chat about how their money can make money too. We’re here to tear down the men’s club that is investing. Research found on Forbes shows that women tend to make better investors. Yet somehow, we’re still left out of the conversation. Yes Wolf of Wall Street is a fun watch but pause it for a minute and ask yourself where women are in the movie. It’s a new dawn, it’s a new day and we don’t want to be wives that cackle along to the men’s jokes because we have our own jokes too.

Now we aren’t saying you should pull out loads of charts and graphs, it’s all about taking one step at a time here. We aren’t trying to be Cathie Wood. If you don’t know who that is but you know who Warren Buffett is, this is your opportunity to do better. Conversations about investing can start with, “Have you heard about fund X recently?” and then follow up with the reasons why it’s worth doing independent research into. What women won’t enjoy is you bragging about an investment you have that’s gone up that we had no prior insight to. Bring us into the discussion, don’t be a know-it-all and share your losses as much as you share your wins. Okay, the last point is unlikely but I thought I’d throw that out there.

I hope this gives you a little bit of insight into where women’s heads are at when it comes to money. Now it’s time for you to catch up!

Young savers, are you on track for ‘30 by 30’?

How twenty-somethings could accumulate £30,000 in their pension pot by 30 years old.

What is the triple lock on State Pensions?

The pension triple lock is the Government commitment to raise the State Pension annually in line with either inflation, average earnings, or 2.5%.

Is it better to pay off your student loan or top up your pension?

Learn more about whether it makes more financial sense to put your money into paying off your student loan or paying into your pension.

Recovering mental health and recovering finances

How to seek mental health support and start your recovery journey.

If you’re recovering or struggling with mental health, there is help out there. Support can be found through mental health charities or NHS mental health services, depending on your needs. Your mental health matters. And it often touches every corner of your life.

Mental health charity, Mind, makes clear connections between money and mental health. Juggling both your emotional and financial recoveries can be tough. We’ll talk through some tips to manage your wellbeing and wealth.

Relationship between money and mental health

No two people are exactly alike. As mental health issues manifest differently between people, some may find remaining in control of their finances easy. Others may find it impossible. Those having a hard time managing their money could fall into a ‘catch-22 situation’.

One of the common dilemmas people face during poor mental health periods is having difficulties managing their money properly. And worrying about mismanaged money can worsen mental health. This cycle can continue relentlessly without support.

Putting off key responsibilities (from creating income to budgeting expenses) can provide temporary relief, just for the headache to come back harder. Not sure where to start? Here are some positive thoughts to support your recovery journey.

Starting your recovery journey

1. Take a step back to look

Honesty is the best policy with your mental health and your money. You can’t fix a problem you can’t see. From making a list of your worries to having a loved one listen to you, there are many methods of opening up that initial discussion about your mental health.

Remember to be kind to yourself

When unpacking all these troubling feelings, remember to be kind to yourself. It can be unpleasant adding up the cost of a mental health crisis. Keep reminding yourself regularly that you’re trying your best - and that’s enough. From there, progress can begin.

2. Regain control

Quality of life shouldn’t be underestimated. Realising you’re having issues with money doesn’t mean you should give up everything that gives you joy to dig yourself out again. To start, ask yourself these questions and seek the support you need to answer yes!

Do you have a job or other form of income?
Are you dealing with debt?
Can you save into an emergency fund?
Have you built a budget?

Instead of setting yourself up for failure, give yourself sustainable money management rules. Being disciplined to begin with can create healthy habits with your money and mental health. Allow for slow progression and be proud of yourself for starting this journey.

3. Make plans for your future

Simplicity is key to success. Making small steps towards a bigger goal is a great outlook. This could be practicing self-care, making time for mindfulness, or setting boundaries. Creating a goal you can reasonably achieve - and work towards - will give you purpose.

You can set yourself debt reduction or savings goals

We set goals because, with willpower, it’s a tried and proven method of achieving substantial accomplishments. Beyond your emotional development, there’s your financial situation. You can set yourself debt reduction or savings goals - giving yourself one less worry.

4. Avoid relapses

Innovations in fitness, money, and wellbeing apps are growing. When you’re feeling mentally well, avoiding triggers and preventing relapses might be the furthest thing from your mind. Luckily there are plenty of apps to keep you on track:

Starling Bank for instant notifications, goals, and spending insights
Calm for mental health check-ins and meditation guidance
Emma for avoiding overdrafts, finding wasteful subscriptions and gaining greater control you need over your finances
ClearScore for tracking and improving your credit score
FitBit for health metrics and sleep tracking

Taking the time to regularly check in on your financial, mental, and physical health is part of a good self care strategy in maintaining your recovery. As problems arise, you’re instantly aware. And most importantly, you’re in control.

5. Celebrate every small success

Love and celebrate your successes, no matter how small. And celebrate the people who have helped get you through those tough times and into a better place. This helps reinforce those healthy habits and remind yourself of how far you’ve come.

Gratitude is a big part of a positive mindset. Once you’re feeling well enough to maintain your mental health, consider giving back. Do a sponsored run for a charity of your choice, or just treat your loved ones to an evening out.

Are you struggling with your mental health?

You’re not alone. If you’re struggling please seek support from a trusted friend or charity:

Contact your GP for making an action plan
Message a text line for 24/7 help
Phone a helpline for instant support
Talk to someone you trust

Risk warning

How PensionBee’s plans are performing in 2021 (as at Q3)

Find out the performance of the PensionBee plans so far in 2021, when compared to the UK and US stock markets.

This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing in 2021 (as at Q2).

The general outlook feels positive as almost 8^{_personal_allowance_rate} of the British population have now had both doses of a Covid vaccine, and UK stock markets have quickly recovered to pre-pandemic levels. Globally, more than 6.91 billion shots have been administered, and US stock markets continue to reach new highs. Nevertheless, economic fallout from the coronavirus pandemic may persist for some time, and investors could continue to experience some degree of market volatility, no matter where their pension savings are invested.

We began producing these quarterly performance updates last year, in response to feedback that you’d like to see the performance of your plan relative to our other plans. We provide this regular summary so you can do just that, as well as compare the performance of your plan with the major UK and US stock markets. We use these market comparators because they measure the performance of the biggest companies on each side of the Atlantic and because most of our customers have a significant portion of their pensions invested in both shares of UK-based and US-based companies. As the majority of our plans are diversified, most of our customers are invested in a mixture of geographies and asset classes.

As of the end of Q3 2021 (the first three-quarters of the year), UK and US stock markets returned 13% and 16% respectively. This is significantly higher than performance for the same period last year when the UK stock markets were down by ^_basic_rate and US stock markets returned 6%. This offers hope that economies are recovering more rapidly than anticipated.

Against this backdrop, PensionBee plans have performed well. Plans designed for savers under 50 have a higher level of investment in company shares compared to plans for older savers. These plans have all benefited from economic recovery and have grown between 9% and 14% during the first three-quarters of the year. Our two responsible funds, the Fossil Fuel Free and Shariah plans have performed the best, and, each having grown by 14%, have outperformed the UK stock market. Most plans for those aged 50 and over have also recorded growth and continue to preserve savings for those who are close to retirement through relatively low exposure to company shares, or none at all.

When considering short term performance, it’s important to remember that your pension is a long-term investment. For example, in the five years to the end of 2020, our plans have experienced average annual growth ranging from 5% to 1^{_personal_allowance_rate}, which should put our customers in good stead to build healthy retirement pots. PensionBee is proud to offer long-term financial products in partnership with the world’s largest money managers: BlackRock, State Street Global Advisors, HSBC, and Legal & General.

Savers under 50

Plan / Index	Money manager	Performance over 2021 (%)	Proportion equity content (%)^
UK stock market	N/A	13%	10^{_personal_allowance_rate}
US stock market	N/A	16%	10^{_personal_allowance_rate}
Fossil Fuel Free Plan	Legal & General	14%	10^{_personal_allowance_rate}
Shariah Plan	HSBC (traded via SSGA)	14%	10^{_personal_allowance_rate}
Tailored (Vintage 2043-2045)	BlackRock	12%	87%
Tailored (Vintage 2037-2039)	BlackRock	1^{_personal_allowance_rate}	76%
Tracker Plan	State Street Global Advisors	9%	8^{_personal_allowance_rate}

Sources: Data is taken directly from the money managers. All performance is reported in gross figures. Past performance is not an indicator of future performance. Capital at risk. These tables do not take account of any fees that may be levied for a particular investment. Full fact sheets are available here: pensionbee.com/plans. Plan performance may vary slightly from published factsheets due to timing differences and other negligible methodological differences. ^Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property.

Savers over 50

Plan / Index	Money manager	Performance over 2021 (%)	Proportion equity content (%)^^
UK stock market	N/A	13%	10^{_personal_allowance_rate}
US stock market	N/A	16%	10^{_personal_allowance_rate}
4Plus Plan	State Street Global Advisors	1^{_personal_allowance_rate}	6^{_personal_allowance_rate}
Tailored (Vintage 2025-2027)	BlackRock	6%	51%
Tailored (Vintage 2019-2021)	BlackRock	4%	39%
Preserve Plan	State Street Global Advisors	^{_personal_allowance_rate}	^{_personal_allowance_rate}
Pre-Annuity Plan	State Street Global Advisors	-8%	^{_personal_allowance_rate}

An important note of caution: It’s impossible to forecast what will happen from quarter to quarter, and past performance should never be used to predict future performance.

For our customers who are already in retirement, and are perhaps thinking about withdrawing their pension, we hope that you will take comfort in the range of plans we have on offer. You may want to consider only drawing down what you need and keeping a close eye on the markets. Our Investment Pathways can help you select a plan based on your personal retirement aims.

We will continue to keep you regularly updated on what’s happening with your savings and if you have questions about your plan’s performance, or anything else, you’re welcome to get in touch with your BeeKeeper.

This is part of our quarterly plan performance series. Check out the next quarter’s summary here: How PensionBee’s plans are performing in 2021 (as at Q4).

Have a question? Get in touch!

You can check out our Plans page to learn how your money is invested in different assets and locations. You can always send comments and questions to our team via engagement@pensionbee.com.

Risk warning

Introducing our Mental Health First Aiders

Promoting mental health support is a key focus at PensionBee. Find out how our Mental Health First Aiders are creating initiatives to support our team's wellbeing.

Your mental health is as important as your physical health. Did you know that one in four people in the UK will experience a mental health problem in any given year? This is a sizable statistic and at PensionBee we’ve put in place several measures to support our team.

The effect of mental health on business

Being supported in your workplace is vital for any job - especially if you’re suffering from poor mental health. Nearly one in seven people experience problems with their mental health in the workplace. And over 12% of all sick days are due to mental health conditions.

From an economic perspective this costs UK businesses around £8 billion per year. But it’s not just about the bottom line, from a human perspective all employees require care and safeguarding to protect them in the workplace.

What is a Mental Health First Aider?

Mental Health First Aid (MHFA) is a training course that gives guidance on how to spot signs of emotional distress, support others, and practice self-care. At PensionBee we currently have four fully trained Mental Health First Aiders: Ashil, Francesca, Tess, and myself.

How do our Mental Health First Aiders make a difference?

Guide colleagues on their mental health issues
Help support with existing problems when needed
Identify signs of distress in colleagues and others
Provide a safe space for them to explore their feelings
Someone who will listen and not judge

What motivated our Mental Health First Aiders?

Our Compliance Manager, Francesca, jumped at the opportunity to become a Mental Health First Aider. Here’s what motivated her decision:

“I love the idea that we can make our colleagues feel supported and less isolated, as most of us at PensionBee work remotely and handling stress is much more difficult when you’re on your own. I’ve always relied on the team around me when work (and life) gets to me and it’s important that we still have that support even if we’re not all in the same room, I’m happy to be that person for anyone who needs it.”

In my case I wanted to be a Mental Health First Aider as I see it as a very good and honourable skill to have. I manage an amazing team of people and have close friends and family who I would want to help, should they ever need any guidance on their mental health.

Supporting wellbeing in our workplace

At PensionBee our Mental Health First Aiders have fortnightly meetings. We discuss everything from upcoming events in the calendar (which can help raise awareness of mental health) to our experiences of supporting colleagues and ways to improve this.

Previous events include World Bipolar Day (30 March), Stress Awareness Month (April), and World Suicide Prevention Day (10 September) to name a few. Developing understanding through having open discussions allows us to empathise with each other. We also have a number of initiatives in place to support our colleagues day-to-day.

Dedicated talks

All the team at PensionBee are strongly encouraged to look after their own mental health. But if they’re struggling, then our Mental Health First Aiders are on hand to provide support.

One-to-one chats

Our Mental Health First Aiders will always make time for someone struggling. And PensionBee is supportive of this. All chats are completely anonymous and can be done virtually if working from home, or in a safe space should they be working in the office.

Wellbeing tips

We recognise that everyone relaxes, winds down or uses different techniques to look after their wellbeing. At PensionBee we’ve got a dedicated communication channel to share our own tips and tricks to practicing self-care.

Are you struggling with your mental health?

You’re not alone. If you’re struggling please seek support from a trusted friend or charity:

Contact your GP for making an action plan
Message a text line for 24/7 help
Phone a helpline for instant support
Talk to someone you trust

You can read our blog about recovering mental health and recovering finances if you’re interested in seeking mental health support and starting your recovery journey. Help is always out there.

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Why the Magnificent Seven matters for pension savers

Mar 2025

Inside the BeeHive

Retirement Planning

The term ‘Magnificent Seven‘ refers to a group of seven leading technology companies in the US, recognised for their innovation and strong performance. Coined by Bank of America in 2023, the name draws inspiration from the heroic characters of the classic 1960s Western action film of the same name. These companies have played a significant role in driving market growth in recent history.

Collectively, the Magnificent Seven holds massive influence over major US stock markets - including the Nasdaq Composite Index and the S&P 500 Index. By the end of 2024, their combined ‘market capitalisation’ (which is the number of company shares issued multiplied by the current share price) stood at an impressive $17.6 trillion.

These companies are at the forefront of revolutionising a range of technologies including:

Artificial Intelligence (AI);
chatbots;
cloud computing;
semiconductors; and
computer chips.

The advancements in these sectors extend their impact far beyond technology, affecting numerous other market areas as well. As such, the Magnificent Seven are some of the most widely discussed company shares (or stocks).

Meet the Magnificent Seven

The Magnificent Seven comprises of the following companies:

Alphabet;
Amazon;
Apple;
Meta;
Microsoft;
NVIDIA; and
Tesla.

Alphabet is Google’s parent company. It’s a major player in online advertising and search engines. In recent years it has branched out into cloud computing and AI.

Amazon started as an online bookstore but has changed the way we shop. Its cloud service, Amazon Web Services (AWS), now holds over a third of the cloud market.

Apple is the biggest company in the world. It leads in consumer electronics with products like iPhones and Macs. Apple’s also working on AI tools which can help with writing, editing and creating images.

Meta owns popular social media platforms like Facebook, Instagram and WhatsApp. The company invests a lot in virtual reality through its Meta Quest headsets and focuses on developing the ‘metaverse’ - a new way for people to interact online.

Microsoft remains a leader in software and cloud services. It’s also making strides in AI with projects like OpenAI and CoPilot, which assist users in various tasks.

NVIDIA creates graphics processing units (GPUs) and software tools for developers. It also produces chips for AI, mobile devices, plus the automotive industry.

Tesla is the top company for electric vehicles (EVs). It’s expanding into energy storage and solar technology.

The importance of the Magnificent Seven for investors

Each company leads its field and develops solutions that could have significant implications across industries like healthcare, education, and finance. For example, NVIDIA’s GPUs might power the AI revolution in the automotive and medical sectors.

With their substantial ‘market caps’ (short for market capitalisations) and extensive reach, they have the power to influence the broader stock market. These companies could offer investors an element of confidence given their dominance in the market.

Despite their massive size, these companies still possess a huge growth potential as they continue to innovate and expand into new markets. NVIDIA is advancing in AI, while Tesla persists in its commitment to EVs and clean energy.

The Magnificent Seven and UK pensions

Most pension funds are diversified across various locations and asset types. This means your retirement savings may be invested in a mix of company shares, bonds, cash, and property - depending on your chosen plan.

This strategy, known as diversification, helps reduce risk. By investing in various areas, if one company or industry performs poorly, it won’t have a major impact on your overall savings.

The main goal of pension investing is to achieve positive returns over the long term so that savers can look forward to a comfortable retirement. This is why many UK pensions invest heavily in US companies, particularly the Magnificent Seven.

How the Magnificent Seven is performing in 2025 (so far)

While the Magnificent Seven continues to dominate US stock markets, they face several challenges that could impact their performance. The competition within the AI and technology sectors is intensifying. Here are three hurdles the Magnificent Seven are facing:

1. Changing valuations

In January 2025, a new China-based generative AI chatbot called DeepSeek emerged, posing a significant challenge to established competitors like ChatGPT. DeepSeek offers similar capabilities at a much lower cost. Its AI model, known as R1, was developed in just two months for under $6 million. Whereas OpenAI’s model took considerably longer and cost a staggering $600 million to train.

This potential for more affordable AI solutions triggered a tech sell-off in US markets. Notably, NVIDIA’s share price saw a ^_ni_rate decline year to date. This situation has raised questions among investors regarding the Magnificent Seven’s high valuations after years of rapid growth. Are we nearing a tech bubble burst?

2. Increased regulation and competition

Governments worldwide are increasing regulations on big tech. This is due to concerns about privacy and market dominance. Additionally, new competitors are emerging in AI, semiconductors, and cloud computing. They aim to challenge established companies and capture market share.

3. The Trump administration’s tariffs

Returning US president Donald Trump’s tariffs could also impact the sector. These tariffs are essentially taxes on imported goods. The Trump administration has already imposed tariffs on goods imported from China, Canada, and Mexico.

The tariffs have already spooked the markets, with the share prices of Apple and Tesla the most affected out of the Magnificent Seven. Apple has a huge manufacturing base in China and now faces ^_basic_rate tariffs on all the products it creates there.

What steps should pension savers take?

When you’re younger, you can usually take more risks with your pension because there’s plenty of time to ride out multiple cycles of market volatility. Remember, investing is a long-term game where values may go up as well as down. Investing primarily in company shares can help maximise growth through compounding - where your returns generate even more returns over time.

As retirement approaches, usually from around 50 years old, it might be a good idea to think about reducing your risk. This can mean moving some of your investments into safer options like bonds or cash. This process, called de-risking, helps protect your savings from market fluctuations, ensuring they’re ready when you need them.

PensionBee offers two default plans depending on your age:

under 50s can save in the Global Leaders Plan, designed for the ‘accumulation’ (or growth) years; and
over 50s can save in the 4Plus Plan, designed for the ‘decumulation’ (or withdrawal) years.

If your investments align with your retirement timeline, you can remain steady during market ups and downs. Market downturns can actually benefit your long-term pension savings, as they allow regular investors to buy shares at lower prices. While history suggests that downturns are often followed by growth, past performance doesn’t guarantee future results. Staying focused on your long-term goals will help you navigate the market’s fluctuations with confidence.

Emma Lunn is a multi-award winning Freelance Journalist. She’s written about personal finance for 20 years, with a career spanning several recessions and their consequences. Her work has appeared in The Guardian, The Mirror, The Telegraph and MoneyWeek. Emma enjoys helping people learn to manage their money well, in both the short and long term.

Risk warning

Period	Market Event	FTSE World TR GBP (%)	4Plus Plan (%)
4Plus Plan’s inception – 6 Sept 2013	QE Tapering, China Interbank Crisis and its aftermath	-5.44	-2.41
3 Oct 2014 – 15 May 2015	Oil price drop, Eurozone deflation fears & Greek election outcome	-5.87	-1.77
7 Jan 2016 – 14 Mar 2016	China’s currency policy turmoil, collapse in oil prices and weak US activity	-7.26	-1.54
15 June 2016 – 30 June 2016	BREXIT referendum	-2.05	-1.07

Period	Market Event	FTSE World TR GBP (%)	4Plus Plan (%)
4Plus Plan’s inception – 6 Sept 2013	QE Tapering, China Interbank Crisis and its aftermath	-5.44	-2.41
3 Oct 2014 – 15 May 2015	Oil price drop, Eurozone deflation fears & Greek election outcome	-5.87	-1.77
7 Jan 2016 – 14 Mar 2016	China’s currency policy turmoil, collapse in oil prices and weak US activity	-7.26	-1.54
15 June 2016 – 30 June 2016	BREXIT referendum	-2.05	-1.07

Elizabeth Anderson

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Lori Campbell

February 28, 2025

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Uneesa Zaman

July 23, 2025

4 steps to finding a missing pension

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November 13, 2024

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Capital at risk

Six tips to invest wisely for retirement

1. Get debt sorted

2. Plan over the long term

3. Beware fees

4. Feeling confident

5. Invest with know-how

6. Tax-free tips

A bit of history

So what exactly is Open Banking?

What’s the benefit for you?

How do we use Open Banking at PensionBee?

What’s next for Open Banking?

What happened to stock markets?

What’s the outlook for 2023?

Summary

Have a question? Get in touch!

What do we mean by financial health?

Why’s financial health in women so low?

Income

Child and elderly care

Savings

Global and economic changes

What can be done to improve financial health amongst women?

At industry level

At government level

What can individuals do?

What does the future look like?

Improving your financial outlook

Short-term goals

1. Budget and pay necessary bills

2. Create an emergency fund

3. Erase debt to improve credit

Long-term goals

4. Funnel money into your pension

5. Get on the property ladder

6. Put away a lump sum into savings

7. Plan for your own inheritance

Seven steps to managing your inheritance money

1. Impact of delaying retirement savings

2. Consider how much you need to retire

3. Think about retiring later

Key takeaways

How does investing work?

How do pension investments work?

Is there an impact to not investing?

Should I do something?

How can assets be split on divorce

Pension offsetting

Pension Sharing Order (PSO)

Pensions attachment order

Deferred lump sum

Deferred pension sharing

How to deal with your pension plans after divorce

Future life plans

Retired spending requirements

Retirement age

Target pot size

Regular contributions

Women – beware the pension divorce trap

The current challenges affecting pensions

What happened to the markets in March?

Have a question? Get in touch!

3 obstacles women face when investing

1. Lack of financial literacy guides for women

2. Lower risk appetite compared to men

3. Lack of confidence making investment choices

Building your pension knowledge

Why aren’t self-employed people saving more?

What options do self-employed savers have?

Entitlement to State Pension

Previous workplace pension pots

Starting a self-employed pension

Benefits of having a self-employed pension

1. Pick the plan that’s right for you

2. Combine pots to accelerate compounding

3. Make flexible contributions

PensionBee’s flexible self-employed pension

Cost of living crisis

The Spring Budget

Tax talk