Learn more about how gold can be considered as part of a diversified investment portfolio of assets and other investments such as pensions.

Why your pension balance may be fluctuating more than usual

Find out why your pension balance might have gone up and down a bit more than usual lately.

Those of you who check your pension balance regularly might have noticed that it’s been a bit up-and-down in recent weeks. This usually isn’t anything to be worried about in the long term, but we wanted to explain what’s going on to relieve any concerns.

Businesses around the world are facing some challenges

Depending on your plan, your pension will invest a substantial proportion of your money into company shares via the stock market. This is an effective way to grow your money over the long term, since companies focus on improving their performance (and therefore their value) each year. But in the short term, companies have their good days and their bad days. This is influenced by all sorts of things, from the changing price of raw materials to their ability to ship their products on time. And this, in turn, affects how much investors are willing to pay for a share in that company’s future.

Your pension balance reflects the value of the companies your money is invested in. And lately, companies have been dealing with a number of challenges, including:

Labour shortages
Energy price rises
Covid disruption
HGV driver shortages and Brexit changes, particularly in the UK

We don’t know how long these challenges will continue for, and therefore how much they’ll continue to impact businesses. However, it’s possible that some of these challenges could be resolved in the near future with strong government action. And if that’s the case, the long term impact on companies (and therefore their share price) could be relatively minimal.

Investors are concerned about the wider economy

The value of a company is influenced by its performance, which in turn is impacted by the wider economy too. These days, investors are concerned about several trends in the global economy.

Rising inflation

Inflation occurs when the average price of goods increases each year. With current supply and labour shortages driving price increases in many sectors, investors are concerned that central banks around the world (including the Bank of England) will begin raising interest rates. This would make it more expensive for people and businesses to borrow money, reducing the amount of money circulating in the economy and investment in new projects. That could limit business growth and that could impact their share price.

Technology rotation

When investors are concerned about a challenging business environment, they tend to look at investing their money in more stable and traditional companies. For many years, the big tech companies like Apple and Amazon have driven a lot of stock market growth. But now they’re under the scrutiny of governments around the world who are tightening up regulation and considering ways of making them pay more tax. This has got investors concerned, and we’re seeing big tech’s share price growth slow as a result.

Exposure to Chinese debt

China’s impact on the global economy is huge, so any economic challenges there could eventually be felt around the world. Currently, several Chinese property developers are rumoured to be struggling to service their debts. If those developers were to default on their debts, it would be bad news for both Chinese and non-Chinese companies who are lenders or somehow otherwise exposed as suppliers. Investors are understandably cautious, and this is having knock-on repercussions for a number of companies’ share prices.

Should you be concerned?

Pensions are long term savings products that are expected to weather even the worst of short term economic challenges. One way pensions are resilient is through diversification. So when some shares fall, others may rise. More broadly when stocks fall, other asset classes, like bonds, may rise. Over the long term, share prices have increased. So while you might see your pension balance go up and down more than usual today, it’s likely to regain any lost growth over the long term.

If you’re approaching retirement, you may be more concerned since there will be less time left to recover any short term losses. Our older customers will have been able to take up our lower-risk plans which aim to preserve your money by investing in more stable assets like bonds. This will limit your exposure to current challenges.

When markets aren’t doing well, there are more opportunities for investors. So you may want to increase your contributions and take advantage of lower prices than before the market downturn and boost your long term savings.

If you have any questions or concerns about your pension, you can contact your BeeKeeper by live chat, email or phone. We’re always here to help.

Risk warning

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

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How does working from home affect your pension?

If you work from home is your pension being affected - for better or worse?

Millions of people have been working from home since the pandemic forced many UK businesses to close their offices. But did you know that over 4.5 million people mostly worked from home before the pandemic, anyway? This trend has been increasing for more than 20 years, and it’s likely to continue.

So how could working from home affect your pension? Let’s find out.

Weighing up the costs

One of the joys of working from home is the lack of commute, which can be expensive. And cities in the UK have some of the most expensive transport in the world. In fact, London takes the top spot and is more than double the cost of other major UK cities.

City	Monthly travel pass cost	Annual cost
London	£160	£1,920
Birmingham	£65	£780
Manchester	£73	£876
Edinburgh	£56	£^{_pension_age_from_2028}2
Cardiff	£53	£636
Belfast	£60	£720

Lunch is another expense that many office-based workers have to absorb. One of the most popular lunch destinations is Pret A Manger, where a Chicken Caesar & Bacon sandwich, an apple and a latte could set you back around £8.60. But those working from home could make all of this with shop-bought ingredients for around £2 - a £6.60 saving.

Those working from home will see one cost rise, however. Work from home employees estimate they’re spending an extra £40 a month to heat their home and boil their kettles, according to one survey.

	Office worker’s monthly cost	Work from home monthly cost
Travel	£160	£0
Lunch	£172	£40
Home electricity	£0	£40

So how do the numbers stack up? When the above costs are factored in, the average Londoner could save £292 each month by working from home. That’s around £3,000 a year, including a month’s holiday leave. Those in Edinburgh would save around ^{_tax_free_childcare} a year.

Investing your work-from-home savings into a pension

Whether you work from home or commute to the office, your workplace pension scheme will work the same way - you and your employer will make a contribution, and the government will top it up.

The key difference for those working from home is that they have the option of investing the money they save on commuting and lunch into their pension.

So let’s see what a Londoner’s pension could be worth if they invested their £3,000 a year work-from-home savings. For simplicity, we’ll break it down by month and won’t include employer contributions because that will likely stay the same.

They contribute their £250 a month savings into their pension
The government tops it up by ^{_corporation_tax}
A total of £313 goes into their pension
Their pension grows 4% each year for 30 years
Their pension could be worth an extra £210,319

And someone working from home in Edinburgh?

They contribute their £182 a month savings into their pension
The government tops it up by ^{_corporation_tax}
A total of £227 goes into their pension
Their pension grows 4% each year for 30 years
Their pension could be worth an extra £152,775

And one more, excluding lunch (because not every office worker eats out every day).

A Londoner contributes their £131 a month savings into their pension
The government tops it up by ^{_corporation_tax}
A total of £163 goes into their pension
Their pension grows 4% each year for 30 years
Their pension could be worth an extra £109,702

Now, the average person in the UK retires with a pension pot worth £61,897. So it seems that wherever you live, working from home could potentially double your pension pot at retirement. And the difference is stark.

Withdrawing £8,000 a year from the average £61,897 pension pot could sustain you for nine years. But withdrawing the same amount from a £171,599 pension pot (average + Londoner excluding lunch example) could last well past your 100th birthday.

Is it worth working from home to boost your pension?

There’s little doubt that for some people, working from home could free up enough money to significantly boost their retirement savings. But is working away from the office really worth it?

Working from home suits some people really well. Some people find it much easier to concentrate away from the distraction of the office, while some parents appreciate spending more time at home with their children. That could even help reduce childcare costs, freeing up more money to put into their pension.

But others miss the buzz of an office environment and the collaboration opportunities that are easier to come by. And less in-person social contact can negatively impact some people’s mental health.

Working from home isn’t for everyone, but there are clear financial benefits for those who do. So it’s worth considering your own needs first before exploring the possible financial gains. And if you’re unsure, you could consider working from home for just a few days a week, as a more workable middle-ground between the two.
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Risk warning: As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

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What happened at PensionBee in October 2022?

From how financial markets have performed to behind-the-scenes news from PensionBee HQ.

It’s been a time of great change in the UK, with the latest political events stimulating a period of uncertainty for both currency and stock markets. While the Pound is stabilising, high inflation and rising interest rates continue to challenge the UK economy. Both have made headlines in recent months, but it’s important to remember that in moderation, inflation and interest rates aren’t inherently bad.

The combination of high energy prices, rising interest rates, and soaring inflation is unfortunately the perfect recipe for a recession. In fact, some news outlets suspect we’re already in a recession. The Bank of England is attempting to limit the damage of inflation by raising interest rates. Yesterday’s announcement by the Bank of England marked the biggest hike in interest rates in more than 30 years as interest rates hit 3%. However, ongoing interest rate rises are likely to slow economic growth.

How are financial markets performing?

With economic uncertainty widespread, information has become the most important detail for investors. Fortunately, October marks an opportunity for insights as many companies reported their quarterly earnings halfway through the month. In UK stock markets, the FTSE 250 Index rose by almost 4%, and in US stock markets, the S&P 500 Index rose by almost 9% last month.

However, these updates can be a double-edged sword. A weaker outlook for Amazon sparked a reduction of more than ^_ni_rate in their share price. Even companies that have seen a successful October may still be far from their 2021 highs after this year’s continued period of market volatility. Although we’re currently in a bear market, the good news is global markets have recovered from every bear market in history.

For a more in-depth look at current market performances, read What happened to pensions in October 2022? And for a breakdown of the latest developments in the UK pensions industry, read What you need to know about pensions right now.

Remember that your pension is a long-term investment when considering short-term performance. Past performance is not a guide to future performance. As with all investments, capital is at risk.

Behind-the-scenes at PensionBee

Refer a friend

We’re revamping our refer a friend programme to help our customers save more for their retirement and we wish to let you know that our previous refer a friend programme ended on 31 October 2022.

We’ll soon be launching a new and rewarding way to refer your friends to PensionBee. Broadly speaking, for every friend you refer under the new programme you’ll get a £100 pension contribution to help you save for a happy retirement. We will let you know as soon as we launch it.

PensionBee Roadshow

Thanks to everyone who joined us on 26 October for the launch of our PensionBee Roadshow. We’re excited to continue our tour of the UK in 2023. Please keep an eye out for more information on dates and locations in the new year.

‘Good Egg’ accreditation

We’re delighted to have recently been awarded Good With Money’s ‘Good Egg’ accreditation, which recognises financial providers that are committed to improving outcomes for both consumers and the planet. At PensionBee our vision is to live in a world where everyone can look forward to a happy retirement.

Keep an eye out for our next update on our blog. We’re always working on new features to make our customers happy so if you have any ideas or suggestions, please email feedback@pensionbee.com or let us know on social media.

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What happened at PensionBee in November 2022?

From how financial markets have performed to behind-the-scenes news from PensionBee HQ.

At PensionBee, we’re committed to being honest and open with our customers, even when times are challenging. Meeting our customers face-to-face, during our first PensionBee Roadshow event, was a wonderful opportunity to discuss some of your most important questions in person. The widespread impact of market volatility on pensions has understandably concerned many investors, so we’ve produced a series of online monthly market performance summaries to help you understand the root cause of fluctuations in your pension balance. And of course, your personal BeeKeeper’s only an email or call away if you have questions or concerns.

How are financial markets performing?

November’s been a favourable month for investors, despite the current ‘bear market‘ environment. In UK stock markets, the FTSE 250 Index rose by over 6%, and in US stock markets, the S&P 500 Index rose by almost 6% last month.

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 in 2023.

For a more in-depth look at current market performances, read What happened to pensions in November 2022? And for your plan’s performance, read How PensionBee’s plans are performing in 2022 (as at Q3).

Remember that your pension is a long-term investment when considering short-term performance. Past performance is not a guide to future performance. As with all investments, capital is at risk.

Behind-the-scenes at PensionBee

Building a greener future

We’re participating in the Mayor of London’s Business Climate Challenge (BCC) to aid London’s target of becoming a zero carbon city by 2030. PensionBee’s one of 40 businesses located on the southern bank of the Thames pledging to reduce their building’s energy consumption by at least 1^{_personal_allowance_rate} over the next year. We’re also delighted to have recently won ‘ESG Company of the Year’ at the Investors Chronicle Celebration of Investment Awards 2022.

Season’s greetings from the PensionBee team

Wishing you a merry Christmas and a happy New Year! If you’d like to get in touch with your BeeKeeper during the festive period, you can give us a buzz between the following hours:

Friday 23 December: 9:30am - 3:30pm
Saturday 24 - Tuesday 27 December: closed
Wednesday 28 - Thursday 29 December: 9:30am - 5pm*
Friday 30 December: 9:30am - 3:30pm*
Saturday 31 December - Monday 2 January: closed
Tuesday 3 January: business as usual, 9:30am - 5pm

**During these days phone lines will be closed, however you can contact your BeeKeeper via live chat and email.

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What happened at PensionBee in December 2022?

From how financial markets have performed to behind-the-scenes news from PensionBee HQ.

There’s no better time to sit down and review your finances than in January. If you haven’t already, make use of the Retirement Planner tool in your BeeHive to set your pension goals and plan for a happy retirement. As the saying goes, ‘the best day to start investing was yesterday, the second best day? Today!’

How are financial markets performing?

2022 was officially the worst year in global markets since the 2008 financial crisis. In UK stock markets, the FTSE 250 Index fell by almost 1% in December, bringing the 2022 performance close to -^_basic_rate. In US stock markets, the S&P 500 Index fell by almost 4% in December, bringing the 2022 performance close to -^_basic_rate.

For a more in-depth look at current market performances, read What happened to pensions in December 2022? And for your plan’s performance, read How PensionBee’s plans are performing in 2022 (as at Q3).

Remember that your pension is a long-term investment when considering short-term performance. Past performance is not a guide to future performance. As with all investments, capital is at risk.

Behind-the-scenes at PensionBee

Our new Refer a friend scheme’s here!

You can now receive £100 (£80 + £20 tax top up) into your pension when you refer a friend! All you have to do is share your unique referral link, which can also be found in your BeeHive under ‘Account’ and then ‘Refer a friend’. Once your friend has opened an account and added £100 or more to their pension, you can claim your £100 reward.

Series Two of The Pension Confident Podcast

In December, we wrapped up Series One of The Pension Confident Podcast, and are thrilled to see our iTunes rating at 4.7/5. If you haven’t already, why not rate us on whichever platform you listen to our podcast on? We’re excited to announce that we’ll be back at the end of January with a brand new series to help you make the most of your finances (here’s a sneak peek of what to expect in Series Two)!

The PensionBee Roadshow’s back

Thanks to everyone who joined us in London for the launch of our PensionBee Roadshow back in October. We’re excited to announce that we’ll be continuing our Roadshow this spring, visiting Birmingham, Manchester, Brighton and Glasgow! It’s our mission to help you save for a happy retirement so all attendees will receive a £25 pension contribution (£20 + £5 tax top up) to add a little honey to your pot.

Over 55? Try out regular withdrawals

Our new regular withdrawal feature provides you with greater control over how, and when, you can take your retirement income from age 55 (57 from 2028). If you’re eligible for pension withdrawals, and want to try our new feature, just drop us an email at feedback@pensionbee.com.

We’re always working on new features to make our customers happy so if you have any ideas or suggestions, please email feedback@pensionbee.com or let us know on social media.

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Top 12 self-employed jobs and the retirement income they could expect

Here’s 12 of the most common self-employed jobs in the UK, the average salaries they’re receiving, and the estimated retirement income they could generate.

If you’ve worked for a company in the past decade, it’s likely you were automatically enrolled into its pension scheme. Under the government’s Auto-Enrolment rules, eligible employees will have 8% of their qualifying earnings (5% from the employee and 3% from the employer), paid into their workplace pension. But what happens when you’re self-employed?

Self-employment gives you the opportunity to set your own hours, decide the projects you want to work on, and be in charge of your own career path. Around 13% of the UK workforce is self-employed.). This could be anything from being a Tutor to a Photographer or Web Designer. With self-employment comes the responsibility to set up and save into your own pension. While around 8^{_personal_allowance_rate} of eligible employees are Auto-Enrolled in their workplace pension scheme, just 16% of self-employed workers choose to pay into a pension for their retirement.

Here’s a countdown of the 12 most common self-employed jobs in the UK according to Indeed, the average salaries each job could receive, and how making pension contributions equivalent to 8% of salary could snowball into a happy retirement. The following scenarios are for illustrative purposes only and assume:

A salary increase of 2.5% each year, from the 2023 average job title salary
Regular contributions of 8% gross salary into one defined contribution pension
Each pension experiences investment growth of 5%, inflation of 2.5%, and an annual management fee of 0.7% each year.

12. Tutor

The Tutor’s Association estimates there are up to 100,000 private tutors in the UK (1). Tutors use their knowledge to privately teach a particular subject to adults learners or children studying towards an exam. In 2023, the average UK salary for a Tutor’s £36,191 per year (2).

Tutors saving 8% of their gross annual salary would have pension contributions worth around £2,939 in the first year, and a pension pot of £32,751 after 10 years. After a 40-year career this could provide a pension worth £189,173.

11. Courier

Each day, over 11 million parcels are delivered in the UK (3) - that’s 132 parcels per second! Couriers travel across the country, delivering packages securely to businesses and households. In 2023, the average UK salary for a Courier’s £12,304 per year (2).

Couriers saving 8% of their gross annual salary would have pension contributions worth around £999 in the first year and a pension pot of £11,134 after 10 years. After a 40-year career this could provide a pension worth £64,314.

10. Social Media Manager

The UK’s home to an estimated 53 million active social media users (4). Social Media Managers create strategies and manage social media campaigns to increase brand visibility for businesses. In 2023, the average UK salary for a Social Media Manager’s £33,378 per year (2).

Social Media Managers saving 8% of their gross annual salary would have pension contributions worth around £2,711 in the first year and a pension pot of £30,205 after 10 years. After a 40-year career this could provide a pension worth £174,470.

9. Personal Trainer

Approximately 62% of British Personal Trainers are self-employed (5). Personal Trainers are fitness experts who plan an exercise regime and coach their clients towards a health goal. In 2023, the average UK salary for a Personal Trainer’s £28,493 per year (2).

Personal Trainers saving 8% of their gross annual salary would have pension contributions worth around £2,314 in the first year and a pension pot of £25,784 after 10 years. After a 40-year career this could provide a pension worth £148,935.

8. Web Designer

There’s almost two billion websites in the world and five billion active internet users (6). Web Designers use their user accessibility knowledge to design an engaging website for various audiences. In 2023, the average UK salary for a Web Designer’s £30,187 per year (2).

Web Designers saving 8% of their gross annual salary would have pension contributions worth around £2,452 in the first year and a pension pot of £27,317 after 10 years. After a 40-year career this could provide a pension worth £157,790.

7. Freelance Writer

According to Semrush, half of companies outsource content writing to independent freelancers (7). Freelance Writers multi-task assignments to write copy across formats and industries. In 2023, the average UK salary for a Freelance Writer’s £20,308 per year (2).

Freelance Writers saving 8% of their gross annual salary would have pension contributions worth around £1,649 in the first year and a pension pot of £18,378 after 10 years. After a 40-year career this could provide a pension worth £106,152.

6. Graphic Designer

The Creative Industries Council estimates that only 5^{_personal_allowance_rate} of design employees are educated to degree level (8). Graphic Designers use design tools to create brand assets, from logos to leaflets. In 2023, the average UK salary for a Graphic Designer’s £27,214 per year (2).

Graphic Designers saving 8% of their gross annual salary would have pension contributions worth around £2,210 in the first year and a pension pot of £24,627 after 10 years. After a 40-year career this could provide a pension worth £142,250.

5. Virtual Assistant

Data from the Office for National Statistics (ONS) revealed that around 14% of the labour market works exclusively from home (9). Virtual Assistants work remotely to support businesses in various administrative capacities. In 2023, the average UK salary for a Virtual Assistant’s £32,217 per year (2).

Virtual Assistants saving 8% of their gross annual salary would equal pension contributions worth around £2,616 in the first year and a pension pot of £29,154 after 10 years. After a 40-year career this could provide a pension worth £168,401.

4. Video Editor

The majority of film editing and television work’s based in London (10). Video Editors compile and compress digital video files to produce adverts or films. In 2023, the average UK salary for a Video Editor’s £27,927 per year (2).

Video Editors saving 8% of their gross annual salary would have pension contributions worth around £2,268 in the first year and a pension pot of £25,272 after 10 years. After a 40-year career this could provide a pension worth £145,977.

3. Event Coordinator

Every year almost 280,000 weddings take place in the UK (11). Event Coordinators organise and execute the logistics of important events, from award ceremonies to weddings. In 2023, the average UK salary for an Event Coordinator’s £24,965 per year (2).

Event Coordinators saving 8% of their gross annual salary would have pension contributions worth around £2,027 in the first year and a pension pot of £22,592 after 10 years. After a 40-year career this could provide a pension worth £130,494.

2. Photographer

Each year, over 1.81 trillion photos are taken worldwide (12) - that’s five billion per day! Photographers are hired on a freelance basis to capture moments such as professional headshots or sporting events. In 2023, the average UK salary for a Photographer’s £26,928 per year (2).

Photographers saving 8% of their gross annual salary would have pension contributions worth around £2,187 in the first year and a pension pot of £24,368 after 10 years. After a 40-year career this could provide a pension worth £140,755.

1. Labourer

Data from 2020 found that close to one in five self-employed people work in the construction sector (13). Labourers work on building sites to renovate or expand the architecture of a region. In 2023, the average UK salary for a Labourer’s £23,071 per year (2).

Labourers saving 8% of their gross annual salary would have pension contributions worth around £1,874 in the first year and a pension pot of £20,878 after 10 years. After a 40-year career this could provide a pension worth £120,594.

Figures provided are rounded to the nearest pound.

Which self-employed job could expect the biggest pension pot?

The biggest estimated pension pot belongs to a Tutor, worth a whopping £189,173! On the other end of the spectrum, a Courier has the smallest estimated pension pot at £64,314. To add context, the average UK worker earns £33,000 (22), and could expect a pension pot of £172,494 using the same pension modelling. Here’s the projected pension pots of the 12 most common self-employed jobs in the UK:

If you’ve qualified for the full State Pension, you’ll currently receive £203.85 per week, or £10,600 a year (2023/24). Depending on what your happy retirement looks like, you’ll need at least a modest amount of personal pension savings to retire comfortably. In fact, the Pensions and Lifetime Savings Association’s Retirement Living Standards gives us an idea of how much a single person needs in retirement: the minimum living standard requires about £13,000 a year, a moderate lifestyle costs around £23,000, and a comfortable lifestyle is around £37,000.

As you can see, the State Pension alone isn’t enough to support even a minimum living standard. You can try our Pension Calculator to see how much income your pension could generate in retirement, and the impact of making regular or one-off contributions. Having savings in a personal, workplace, or self-employed pension can help fill that income gap and support a moderate or comfortable lifestyle. While self-employment rates have been rising over the past decade, the pension savings of this group aren’t keeping pace and there’s now a self-employed pension gap.

Introducing an Auto-Enrolment scheme for the self-employed could be a simple way to help close the pension gap between employed and self-employed workers. The Financial Resilience All Party Parliamentary Group has advocated for this legislation in its financial resilience report on UK households. In the meantime, if you’re self-employed and want to start contributing to a pension, PensionBee’s self-employed pension gives you the flexibility to make contributions that work for you. You don’t need to worry about minimum contributions, so you can contribute an amount that fits your budget as often as you’d like.

Footnotes

Tutor’s Association: https://thetutorsassociation.org.uk/
Indeed: https://uk.indeed.com/career-advice/finding-a-job/self-employed-jobs
Shiply: https://www.shiply.com/articles/uk-delivery-and-courier-industry-statistics
Cybercrew: https://cybercrew.uk/blog/social-media-statistics-uk/
Healthily Toned:
https://www.healthilytoned.com/single-post/self-employed-vs-employed-fitness-instructors
Techjury: https://techjury.net/blog/how-many-websites-are-there/
Semrush: https://www.semrush.com/blog/category/content/content-creation/
The Creative Industries: https://www.thecreativeindustries.co.uk/facts-figures/
Office for National Statistics:
‍https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/
Prospects: https://www.prospects.ac.uk/job-profiles/film-video-editor
Photutorial: https://photutorial.com/photos-statistics/
Office for National Statistics:
‍https://www.ons.gov.uk/businessindustryandtrade/constructionindustry/

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Risk warning

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Four steps to negotiating your salary

We all know about the gender pay gap, but what about the gender ask gap? Find out why women aren’t negotiating their salary at the same rate as men - plus what they can do to earn more money.

Despite progress towards workplace equality, the gender pay gap remains a persistent reality in the UK - with women earning an average of 7.7% less than their male counterparts, according to the Office for National Statistics. While systemic changes are crucial to narrowing the gap, there are a few things women can do on an individual basis - from investing in their personal development to building their professional networks - to advance their careers.

Here are four steps to negotiating your pay.

1. Closing the “ask gap”

CEO and Co-Founder of The Know; Lynn Anderson Clark says: “I think it’s hard to say ‘have more confidence’. But something that helps me is preparation. So when I think about preparation, it’s about doing my research, benchmarking and things like that.”

One key strategy lies in dismantling the “ask gap”. Research reveals a key reason behind the pay gap: women are less likely than men to negotiate their salaries. A staggering 68% of women accept salaries without negotiation, a figure 16% higher than men. This translates to significant missed opportunities, compounding over time.

Before initiating a raise conversation, gather data on your performance and research market rates for similar positions. You can use tools for salary benchmarking to see how your job role and years of experience is typically compensated. This information strengthens your position and allows you to present a compelling case for a raise.

2. Timing the conversation

Social Entrepreneur and Broadcaster; Natalie Campbell MBE says: “Where is the business in the financial planning year? Because budgets are planned in these cycles. So if you go at the wrong time and you get the answer that ‘we can’t accommodate it’, it’s because the budget’s been set already.”

When preparing to ask for a promotion, timing can be just as important as evidencing your contribution. Knowing when the company’s financial planning period is crucial. If you go onto Companies House and look at the company account, you can see the filing date. Your employer’s financial year could run from January to December or more often from April to March.

Alternatively, you could align your request with recent positive developments within the company. Did you just land a major client or successfully complete a significant project? These moments of success are ideal for highlighting your contributions and the value you bring. If a raise isn’t immediately possible, don’t hesitate to inquire about the timeline for future consideration.

3. Navigating the negotiation

Senior Customer Experience Researcher at PensionBee; Priyal Kanabar says: “Make sure you have clarity about what your job role is, and that your manager is on the same page. Because what can end up happening is you absorb tasks from here and there, and your role becomes harder to benchmark.”

When negotiating, it’s best to focus on the value you bring to the company, not your personal needs. You may have found the cost of living crisis stretching your finances and your salary hasn’t kept pace with inflation. While this is valid, it isn’t a business case for progression. Instead highlight your achievements, contributions to projects, and how your work has benefited the organisation.

Although salary is undeniably important, it’s only one piece of the puzzle. You may want to also consider negotiating other elements of the compensation package such as pension contributions, flexible work arrangements, health insurance and professional development opportunities. These can contribute significantly to your work-life balance, well-being, and career development.

4. Be prepared to walk away

Social Entrepreneur and Broadcaster; Natalie Campbell MBE says: “If you know what the salary is, or at least the benchmark of the salary, it means you can have a conversation. When you walk in and they say ‘what’s your salary expectation?’, that’s the biggest bear trap.”

It’s crucial to remember that negotiations are a two-way street. You should confidently advocate for yourself, but be prepared to walk away if necessary. If an employer isn’t willing to meet your expectations and reasonable requests, or if the company culture doesn’t value your skills and contributions, it might not be the right fit for you. As the saying goes: “know your worth, then add tax”.

A Glassdoor survey found that job hoppers experience an average salary increase of approximately 1^{_personal_allowance_rate} - ^_basic_rate compared to those who stay in the same role over a long period. Plus, if you’re concerned about whether your new employer has a gender pay gap - you may be able to check online. Companies with more than 250 employees are legally required to declare their gender pay gap data on the government’s Gender Pay Gap Service.

Summary

Negotiating your salary and benefits package is a valuable skill that can significantly impact your earning potential. By closing the “ask gap”, timing your approach, considering the total compensation package, and being willing to walk away if needed, you can bridge the gap between your potential and your paycheque, ensuring you’re rewarded fairly for your work.

Listen to episode 25 of The Pension Confident Podcast and hear from our panel of expert financial guests as they discuss their experiences of negotiating pay, as both an employee and employer. You can also watch the episode on YouTube or read the transcript.

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How to talk to friends about money

Navigating social circles with different financial priorities can be tricky. Here’s some practical tips for nurturing your friendships without breaking the bank.

What does a politician's pension look like?

It’s well known that politicians receive a comfortable salary, but how do their pensions compare to yours? Read on to find out.

MPs, or Members of Parliament, are individuals elected by the UK public to represent their interests and concerns in the House of Commons. They play a crucial role in the legislative process, considering and proposing new laws, as well as raising issues that matter to the public.

While politicians like to tell voters they’re ‘just like us’, one clear difference is pay. To be in the top 1% of UK earners, you need to earn more than £181,000. The Prime Minister of the UK can expect to earn around £1^{_state_pension_age},786 in the 2024/25 tax year, with Cabinet Ministers earning close to £158,851.

But the financial benefits don’t stop there. Like many public sector workers, MPs will also receive a generous defined benefit pension when they retire.

Who decides what MPs get paid?

In short, the Independent Parliamentary Standards Authority (IPSA) is responsible for MPs’ pay and pensions. But this wasn’t always the case. Parliament used to be in control of their own compensation. MPs would consult experts, such as the Senior Salaries Review Board, then vote on whether their salaries increased or not.

What changed?

In 2005, The Freedom of Information Act 2000 came into effect and immediately campaigners requested details of MPs’ expenses. This began the slow unravelling of the MPs’ expenses scandal of 2009 which had a profound impact on public confidence in British politicians.

In response to the expenses scandal, the government announced the creation of IPSA, which came into effect in 2010. These days IPSA makes decisions on the pay, pensions and reasonable expenses of the 650 elected MPs and their staff in the UK.

MPs’ salaries

The annual changes in MPs’ pay are determined based on the changes in average earnings in the public sector, as indicated by the Office for National Statistics (ONS) figures. This means that the annual basic salary paid to all MPs is adjusted in accordance with the trends in average earnings.

As of April 2024, MPs receive a basic annual salary of £91,346. It’s worth noting that ministers who are also Members of the House of Commons receive two types of salaries: a MPs salary and a ministerial salary. For example, a Cabinet Minister would receive an extra £^{_pension_age_from_2028},505, while the Prime Minister gets a further £75,440.

MPs’ pensions

Most modern workplace and personal pensions are defined contribution pensions. On retirement, the amount your defined contribution pension is worth depends on how much money you’ve contributed and the performance of your investments. With a defined benefit pension, the employer guarantees to pay a set retirement income, regardless of how the underlying investments perform.

In 2015, alongside other public service pension schemes, the MPs’ Parliamentary Contributory Pension Fund (PCPF) was reformed. Prior to this, their defined benefit pensions were based on an MP’s final salary, but now they’re calculated based on their average salary over their career. Additionally, the age at which pensions become payable has been aligned with the State Pension age, rather than fixed retirement ages of 65 or 60.

Parliamentary pension double standard

In July 2023, the Chancellor announced the Mansion House Reforms, which aimed to boost investment in UK companies through pension schemes. The Mansion House Compact is a pledge made by nine UK pension providers to invest at least 5% of their default funds in ‘unlisted UK companies’ by 2030.

Unlisted companies are businesses that aren’t traded on a public stock exchange. These earlier stage businesses are generally considered to be riskier, and many of them could fail. At the same time, investing in unlisted companies usually comes with higher costs for pension savers.

Why does this matter? MPs own pension scheme (the PCPF) has underinvested in the UK by their own standards. While UK companies make up 3.6% of the FTSE All-World index series, a report published in The Times found that the PCPF scheme only allocated around 1.3% of its total equities to the UK.

In short, the government has been pushing for more pension investment in UK companies - except for their own pension scheme. The trustees of the scheme (who are current and former MPs) have made the decision that the UK is a bad bet for their retirement, but not for yours.

How to kickstart your pension savings

While we wouldn’t necessarily recommend you become a politician, there are lots of other things you can do to boost your pension savings. Our calculators can help you plan ahead for retirement. Use our Pension Calculator to understand how much you might need to save into your pension. If you feel there’s a gap between your projected and desired retirement income, you can consider combining your old pensions and contributing to your pension to boost your savings.

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Can money buy happiness?

Ever wondered if your hard-earned income actually translates to more happiness?

For many people diligently building their nest egg, the question of money’s link to happiness is a natural one. After all, financial security can reduce a significant source of stress. But can simply having more money guarantee a life filled with joy?

What does the research say?

A landmark 2010 study by Princeton’s Daniel Kahneman and Angus Deaton found that increased income positively affects day-to-day happiness, but only up to a point - roughly $75,000 annually in the US (equivalent to almost £58,000 in the UK).

This was contradicted by research published in 2021 by the University of Pennsylvania’s Matthew Killingsworth, suggesting happiness continues to rise steadily with income, even above the $75,000 mark!

To settle the debate once and for all, Killingsworth, Kahneman and Professor Barbara Mellers teamed up in 2023 to find the answers. They found that within each income group, some individuals start off unhappy and then experience a significant increase in happiness until they reach an annual income of $100,000 (£75,000). After reaching this point, their happiness levels plateau. So, it’s clear the relationship between happiness and money isn’t always straightforward.

But what can we do if we want to find more happiness from the money we have? Putting income aside, there are two aspects of our money that can greatly impact our happiness: how you get your money and how you spend it.

How you get your money matters

Research by Harvard Business School professor Michael Norton and Ph.D. student Grant Donnelly, found that people who earn their wealth tend to be happier than those who inherit it.

The study surveyed over 4,000 millionaires worldwide to understand the impact of wealth on happiness. The findings revealed that self-made millionaires were happier than those who inherited money or married into wealth.

Occupational Psychologist and chartered member of the British Psychological Society, Kim Stephenson says: “What they’ve generally found is there’s a happiness set point. So, if you have a lottery win, it’ll boost happiness for a while. Then it usually sinks back [to how it was before]. And if you have a serious accident or you lose money, you tend to ping back. Part of the secret of it is learning how to push your set point up.”

Why might this be the case?

Lottery wins or unexpected inheritance can bring a sudden influx of wealth. While this may initially create a sense of excitement and euphoria, the sudden change in financial circumstances can also lead to challenges in adjusting to the new lifestyle.

Windfalls can create strains in managing finances, as you may not have developed the financial skills necessary to handle large sums of money. Without proper financial planning, the wealth can quickly diminish, leading to financial stress and instability.

On the other hand, income earned through work typically offers a sense of control and stability over your financial situation. Regular paychecks allow individuals to plan and budget, providing a greater sense of security and peace of mind.

Work often plays a central role in shaping your identity and providing a sense of purpose. It can also foster social connections, as colleagues and professional networks offer opportunities for social interaction and support.

How you spend your money matters

Research from Dr. Elizabeth Dunn, Chief Science Officer at Happy Money and PhD student Iris Lok found that people who had donated to charity were happier than those who hadn’t.

The study found that people who spent on social experiences and time-saving services were happier. In other words, when we use our resources to benefit others and prioritise our time wisely, we tend to feel more life satisfaction.

Co-Founder of The Humble Penny and The Financial Joy Academy, Ken Okoroafor says: “How can you commit a little bit of money, or maybe even no money, to [something] that gives you joy every week. So, for me, on Fridays I go on a date with my wife. We go to the cinema, go for a walk and maybe stop off for a mocha. I’m really experiencing joy every week. It’s planned, it’s intentional, it could be low cost, and it works, and everyone can attain that.”

Why might this be the case?

There are several reasons why spending money on others and investing in experiences and time-saving services (such as hiring house cleaners or ordering food delivery) can contribute to greater life satisfaction.

Firstly, when we give to others or contribute to charitable causes, it creates a sense of purpose and fulfilment. Knowing that our actions have made a positive impact on someone else’s life can bring a deep sense of joy and satisfaction.

Secondly, spending on social experiences allows us to connect with others, fostering meaningful relationships and a sense of belonging. Human beings are social creatures, and the quality of our relationships play a significant role in our overall happiness.

Lastly, investing in time-saving services frees up valuable time that can be spent on activities that bring us joy and fulfilment. By outsourcing tasks that we don’t enjoy or that consume a lot of our time, we can focus on activities that align with our passions and values.

Summary

Money provides us with the means to fulfil our needs, pursue our goals, and enjoy certain pleasures in life. It offers a sense of security and freedom, allowing us to experience a higher quality of life. However, it’s important to recognise that money alone doesn’t guarantee happiness.

Here are three key takeaways on how to use your money to increase your happiness.

Focus on experiences, not spending - invest in experiences for lasting memories and long-term happiness. Prioritise activities and resources that enhance your physical and mental wellbeing, like gym memberships, yoga classes, therapy sessions, or wellness retreats.
Invest in personal growth - use your money to develop new skills and expand your knowledge. Take classes, participate in workshops, or seek guidance from a mentor.
Practise mindful spending - align your expenses with your values and priorities. Support your hobbies, passions, or values by spending on books, art supplies, or charitable donations. By being intentional, you’ll derive greater happiness from your purchases.

Listen to episode 30 of The Pension Confident Podcast and hear from our panel of expert financial guests as they discuss how you can use money to maximise your own happiness and the pitfalls to avoid. You can also watch the episode on YouTube or read the transcript.

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How PensionBee’s plans are performing in 2024 (as at Q3)

Find out the performance of the PensionBee plans at the end of Q3 2024, 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 2024 (as at Q2).

As we near the end of 2024, it looks like it will be a noteworthy year. Recent data from the Office for National Statistics (ONS) shows that UK inflation is at 1.7% in September, the lowest in over three years. Over in the US, inflation has also dropped for six consecutive months to 2.4%. These trends indicate a stabilising economy, which can boost investor confidence and positively affect pension funds. Given the fear of global recession making headlines in recent years, this apparent ‘soft landing’ from the volatility of 2022 should be reassuring news for savers.

The Federal Reserve cut interest rates to a range of 4.75% - 5%, marking the first reduction since the COVID-19 pandemic began in March 2020. Meanwhile, the Bank of England has kept its Bank Rate at 5%. When interest rates go down, the prices of existing bonds usually go up. This is because new bonds are issued with lower yields, making the older bonds with higher yields more appealing to investors. This is positive news for customers with longer-dated bonds in their pension, such as our Tailored Plan vintages closest to retirement.

Most pensions are heavily invested in company shares across the globe. If we rewind back to July, Japan’s Nikkei 225 Index seemed poised to lead global indices with the US’s S&P 500 Index trailing closely behind. However, growth for the Nikkei 225 has slowed in the last quarter. This was linked to the country’s incoming Prime Minister and concerns about maintaining high interest rates. For context, around 6% of the equity portion of our Tailored (Vintage 2043 - 2045) Plan is invested in Japan.

On the other hand, China’s Hang Seng Index began the year slowly and has since surged impressively following the Chinese government’s easing of restrictions. By the end of September, the Hang Seng had taken the lead as the best-performing major index of 2024, followed closely by the US’s S&P 500 Index. Why does this matter? Asia (excluding Japan) makes up around 11% of the equity portion of the Tailored (Vintage 2043 - 2045) Plan.

Keep reading to find out how global markets and our PensionBee plans have performed over 2024 so far.

2024 performance figures cover the period between 1 January and 30 September 2024 only.

This blog is only meant to provide information. The data comes from our money managers or plan factsheets. Performance figures are before fees. Past performance isn’t an indicator of what will happen in the future. As with all investments, capital is at risk.

Company shares in 2024 (as at Q3)

What are company shares?

Company shares are units of ownership in a company. When a company wants to raise money, it can issue shares to investors who pay a certain amount of money for each share. By buying shares, investors become part-owners of the company and can enjoy its profits or growth. But, they also take on the risk of a decline in share prices if the company performs poorly or even goes bankrupt. Company shares are also known as ‘stocks’ or ‘equities’, and they’re commonly traded on stock markets.

Global stock markets

In the Eurozone, shares performed well, particularly in real estate and healthcare. Over in the UK, company shares rose after the Labour Party’s election win, but concerns about a tough Autumn Budget and rising taxes tempered optimism.

In the US, company shares grew. But the performance across industries was a mixed bag: with investors preferring the stability of utility companies over the excitement of the technology sector.

Japan’s stock market saw high volatility, with a significant drop after the Bank of Japan raised interest rates, but it stabilised later as fears eased. In Asia, markets outside Japan saw solid gains - especially China due to government stimulus.

Index	Investment location	Performance over 2024 (%)	Equity proportion (%)
FTSE 250 Index	UK	+6.9%	10^{_personal_allowance_rate}
EuroStoxx 50 Index	Europe (excluding UK)	+10.6%	10^{_personal_allowance_rate}
S&P 500 Index	North America	+20.8%	10^{_personal_allowance_rate}
Nikkei 225 Index	Japan	+13.3%	10^{_personal_allowance_rate}
Hang Seng Index	Asia Pacific (excluding Japan)	+24.^{_personal_allowance_rate}	10^{_personal_allowance_rate}

Source: BBC Market Data

PensionBee’s equity plans

Plan	Money manager	Performance over 2024 (%)	Equity proportion (%)
Shariah Plan	HSBC (traded via State Street Global Advisors)	+19.3%	10^{_personal_allowance_rate}
Fossil Fuel Free Plan	Legal & General	+12.5%	10^{_personal_allowance_rate}
Impact Plan	BlackRock	+8.1%	10^{_personal_allowance_rate}
Tailored (Vintage 2061 - 2063) Plan	BlackRock	+12.4%	10^{_personal_allowance_rate}
Tailored (Vintage 2055 - 2057) Plan	BlackRock	+12.4%	10^{_personal_allowance_rate}
Tailored (Vintage 2049 - 2051) Plan	BlackRock	+11.8%	96%
Tailored (Vintage 2043 - 2045) Plan	BlackRock	+10.7%	85%
Tracker Plan	State Street Global Advisors	+12.7%	8^{_personal_allowance_rate}
Tailored (Vintage 2037 - 2039) Plan	BlackRock	+9.5%	72%
4Plus Plan	State Street Global Advisors	+9.4%	71% ^
Tailored (Vintage 2031 - 2033) Plan	BlackRock	+8.3%	59%

^Equity % at 30 September 2024, asset allocation changes on a weekly basis due to the plan’s actively managed component.

Bonds in 2024 (as at Q3)

What are bonds?

Bonds are a type of investment where you lend money to an organisation, like a government (sovereign bonds) or company (corporate bonds). In return, they agree to pay you back with interest over a fixed and pre-agreed period of time, this is known as the coupon. A bond yield is the anticipated rate of annual return that an investor gets from a bond for its duration (maturity of the loan).

Bonds have different ratings, with AAA grade also known as “investment grade”, signifying the highest quality with minimal risk of default. Due to their historical stability and predictability, bonds are a popular choice for shorter-term investors such as retirees who plan to draw down in the near future. Bonds are also known as ‘fixed-income securities’ or debt.

Global bond markets

Interest rates can impact pensions, especially for savers nearing retirement. When interest rates rise, newly issued bonds provide better returns, which can help pension funds grow. On the other side, low interest rates can reduce returns.

In the US, a surprising drop in jobs and inflation led the Federal Reserve to cut rates by 0.5% in September. In the UK, the Bank of England began cutting interest rates in August - for the first time since the pandemic. This cycle of interest rate cuts has also been mirrored in other major economies, such as Canada and Europe.

Plan	Source	Performance over 2024 (%)	Fixed-income proportion (%)
Schroder Long Dated Corporate Bond Fund	Morningstar	-0.5%	86%

Source: Morningstar

PensionBee’s fixed-income plans

Plan	Money manager	Performance over 2024 (%)	Equity proportion (%)
Pre-Annuity Plan	State Street Global Advisors	-1.9%	10^{_personal_allowance_rate}
Tailored (LifePath Flexi) Plan	BlackRock	+6.2%	72%
Tailored (Vintage 2025 - 2027) Plan	BlackRock	+6.9%	41%

PensionBee’s money market plans

Plan	Money manager	Performance over 2024 (%)	Cash equivalent proportion (%)
Preserve Plan	State Street Global Advisors	+4.^{_personal_allowance_rate}	94%

Have a question? Get in touch!

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

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Can you save your way to a lottery-size win?

Discover how switching from lottery tickets to smart saving could lead you to a jackpot size win - without relying on luck!

10 pension changes and what they mean for your money

As we start the new year, it’s the perfect time to reflect on the significant changes in the pensions industry. Read about the key changes from the last decade and what’s to come.

As we start the beginning of a new year, we’re reflecting on changes in the pensions industry - past, present, and future. The past decade has brought significant changes to British pensions. We’ve seen initiatives like:

Auto-Enrolment;
advancements in technology; and
more flexible regulations.

This has made it easier for individuals to manage and use their retirement savings. Recent changes announced by the Chancellor in the Autumn Budget raised an important question: what further changes could we expect in the coming years?

The past 10 years of pensions

Let’s take a closer look at five key changes in the pensions industry over the last decade.

1. Introduction of Auto-Enrolment

PensionBee’s Founder and CEO, Romi Savova says: “I think Auto-Enrolment has put a new generation on a better footing for the future. Especially if you’re in your early 20s and you’re auto enrolled. If you’re saving throughout your life, come the age of 65, you’re probably going to be doing quite all right. I do think that’s been absolutely transformational.”

Auto-Enrolment is a system where eligible employees are automatically enrolled in a pension scheme by their employer, unless they choose to opt out. This initiative has made it easier for individuals to save for retirement.

In April 2019, the minimum contribution rate increased to 8%. Of which 5% comes from employees’ salaries (including tax relief) and 3% from employers. This change has encouraged more people to participate in pension schemes, helping to boost their financial futures.

2. Pension freedoms reforms

The introduction of the ‘pension freedoms‘ in 2015 made a big difference in retirement planning. Savers aged 55 and over (rising to 57 from 2028) have more choice on how to take an income from their defined contribution pension. Under these reforms, eligible retirees have the freedom to withdraw an income from their defined contribution pension, accessing as much as they want.

The tax rates on these withdrawals will depend on their total income for the year. Up to ^{_corporation_tax} of the pension pot can be taken tax-free. Currently beneficiaries can access that money without having to pay Inheritance Tax (IHT) if you pay away before 75.

Although this is set to change - more on IHT and pensions later! This has empowered individuals to manage their pensions according to their needs, although it has also highlighted the importance of understanding retirement costs.

3. The State Pension criteria

Money Advice Editor at The Telegraph, Sam Brodbeck says: “To date, pensioners have largely had final salary pensions and the State Pension. There’s probably going to be a generation, perhaps Gen X, that has none of that. And actually retires quite poor with only the State Pension.”

The introduction of the new flat-rate State Pension in 2016 marked a significant shift in eligibility requirements. To qualify for the new State Pension, individuals must have at least 10 years of National Insurance (NI) contributions, with 35 years needed for the full amount.

In December 2018, the State Pension age for women increased to 65. By October 2020, it rose to ^{_state_pension_age} for both men and women. These changes have prompted many to reconsider their retirement plans and the timing of their State Pension claims.

4. The triple lock promise

The triple lock system, designed to ensure that the State Pension keeps pace with inflation, was suspended in 2021. This system guaranteed that the State Pension would increase based on the highest of:

average earnings;
inflation; or
2.5%.

Due to the impact of the furlough scheme, average earnings rose significantly, which may have distorted figures artificially.

This prompted the government to pause the earnings element of the triple lock for the ^{_tax_year_minus_three} tax year. Instead of increasing based on earnings, the State Pension rose by 3.1% in line with the Consumer Prices Index (CPI). But it was reinstated in April 2022 to support pensioners facing rising living costs amid ongoing economic challenges.

5. Abolition of Lifetime Allowance

In April 2023, the Lifetime Allowance (LTA) tax charges on funds exceeding the limit were removed. This allowed individuals to save more without facing penalties. The LTA itself was only abolished in April 2024, when it was replaced by two new allowances:

the Lump Sum Allowance (LSA); and
the Lump Sum and Death Benefit Allowance (LSDBA).

This significant change was part of the previous government’s Budget announcements in 2023 aimed at encouraging higher pension savings.

Additionally, the annual allowance for pension contributions increased from £40,000 to ^{_annual_allowance} (2023/24). This further incentivises individuals to boost their retirement savings. This increase remains in effect for the 2024/25 tax year as well. This move was expected to benefit many savers, providing them with greater flexibility in their pension planning.

What could the next 10 years look like?

Looking ahead, here are five proposed or potential changes we might see in the pensions industry over the next decade.

1. Inheritance Tax on defined contribution pensions

For a long time, it’s been possible to pass on pension funds to beneficiaries without them incurring Inheritance Tax (IHT). This has led many individuals to draw down on other assets as they age, allowing them to leave their pensions intact.

Under current rules, if someone passes away before age 75, their unused pension funds can be paid to beneficiaries tax-free. If they die after 75, their beneficiaries still don’t pay IHT, but they’re liable for income tax at their marginal rate on any withdrawals.

From April 2027, unused pension funds and death benefits will be included in IHT calculations. This could increase the tax burden on estates with large pension funds. It’s worth mentioning that the details of this change are still under consultation and the specifics of this new policy are currently unknown.

2. Rising pension age

Founder of Money to the Masses, Damien Fahy says: “I think the rules around pensions are changed too frequently. It’s a game they’re playing, but the rules are always changing. The age at which you can access your pension would’ve changed since you first put money in. I think we need to have a period of calm around pensions.”

The number of centenarians (people reaching 100 years old) has more than doubled in the past 20 years, according to the Office for National Statistics (ONS). The State Pension age is currently ^{_state_pension_age} but will rise to ^{_pension_age_from_2028} starting 6 May 2026. Future changes will depend on population size and life expectancy.

The normal minimum pension age is the earliest point at which individuals can access their personal or workplace pensions without facing hefty tax penalties. From 6 April 2028, this age is set to rise from 55 to 57 years old.

3. The arrival of the Pensions Dashboard

Back in 2002, the Secretary of State for Work and Pensions suggested a web-based retirement planning tool. Fast forward over two decades and this still hasn’t been implemented. In September 2016, the government first announced its plans to deliver pension dashboards. The suggested Pensions Dashboard would allow savers to view their combined pensions information online, helping to reconnect lost pension pots.

This is more important than ever. New analysis conducted by the Centre for Economics and Business Research revealed that nearly one-in-five (^{_corporation_tax_small_profits}) UK adults feel certain they have lost a pension pot. This equates to approximately 8.8 million individuals.

As such, there’s a critical need for timely implementation of the Pensions Dashboard to help millions of savers manage their pensions effectively. However, in October 2024, the Pensions Minister announced a prioritisation of the MoneyHelper Pensions Dashboard launch. This is a government backed and non-commercial digital service to enable people to access their pension information in a single place online.

In contrast, the Pensions Dashboard is specifically designed to enable commercial organisations to give users a detailed view of their pension savings. The launch of the Pensions Dashboard is currently delayed, which will affect how soon savers can access important information about their pensions. This delay means that consumers will have fewer options until the launch of commercial pension dashboard services. Once these services become available, it’ll increase savers’ options and encourage greater involvement in managing their pensions.

4. A 10-day pension switch guarantee for consumers

PensionBee’s Founder and CEO, Romi Savova says: “A ‘Pension Switch Guarantee’ is the obvious reform that we’ve been asking for many years. [It works] the same way that if you want to move any other financial asset. You tell one company that you’re joining and another company that you’re leaving. They have 10 days to move the money from one place to another.”

PensionBee analysis of Origo’s latest Pension Transfer Index has uncovered a 17% increase in transfer times over the last three years. Despite slow transfer times being identified as a problem by the Financial Conduct Authority (FCA) back in 2015, the issue remains prevalent amongst a number of key players.

The ‘Pension Switch Guarantee‘ initiative is campaigning for all providers to use electronic transfers for defined contribution pensions. Not only is this quicker, but it’s much safer for customers as payments are tagged and traced. This way you’ll know where your money is at every step of the process.

5. Expansion of Auto-Enrolment

The government needs to decide on the future of minimum pension contributions, including potential increases. The Pensions (Extension of Automatic Enrolment) Act passed in 2023 aims to expand enrolment to younger workers aged 18 to 21. It also removes the ^{_lower_earnings} lower earnings limit for qualifying contributions.

This change would result in additional contributions, significantly impacting take-home pay for low earners. By making pensions more accessible to younger workers, the government can help foster a culture of saving for retirement from an early age. This could boost the financial security of future generations.

Summary

The pensions industry is evolving quickly to meet the needs of today’s savers. In the past decade, we’ve seen key changes like Auto-Enrolment and pension freedoms that have made saving for retirement simpler.

Recent announcements from the Autumn Budget indicate that the government is keen to make further improvements. Looking ahead, we’re set to see new rules such as:

IHT on pensions;
changes to what age you can access your savings; and
the launch of the Pensions Dashboard to help people keep track of their savings.

Ideas like a 10-day pension switch guarantee and the expansion of Auto-Enrolment could also make pensions more accessible. As these changes unfold, it’s important for everyone to stay informed and engaged with your retirement plans.

To learn more, listen to episode 34 of The Pension Confident Podcast. You can also watch the episode on YouTube or read the transcript.

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Starting a pension at 50

Feeling behind on retirement savings in your 50s? You’re not alone! Find out how even when starting from zero savings you can still snowball a pension to fund your happy retirement.

This article was last updated on 28/04/2025

If you find yourself in your 50s, with nothing set aside for retirement, it can feel like a daunting mountain to climb. Yet, this scenario is more common than you might think, with an estimated seven million people over 50 in the UK having no private pension savings at all.

Let’s face it, when you were younger, there wasn’t the financial awareness or planning tools we have today. Even benefits like Auto-Enrolment - which has meant more employees were automatically saving into a workplace pension - are relatively recent. However, it’s not too late to start saving, and the power of compound interest can help you make up for lost ground.

It’s never too late to start

The first thing to understand is the power of compound interest. Albert Einstein once famously referred to it as the ‘eighth wonder of the world’. Compound interest works on the principle that the interest you earn on your savings also earns interest. So, even if you’re starting to save later in life, your money can still grow significantly over time.

Example: Sarah’s 50 years old with no private pension savings, but she’s able to start saving £400 a month into a personal pension. For every £400 she contributes, the government adds an extra £100 in basic rate tax relief, effectively boosting her savings by ^{_corporation_tax}.

Assuming a growth rate of 5% after fees and inflation, she’d have a pension pot worth around £200k in 20 years time. This could give Sarah an extra £8k of income in retirement. Combined with her full new State Pension entitlement, she’d comfortably have over £20k a year to live on from her 70th birthday.

Many people now consider 70 to be the new 60. Research even indicates that baby boomers are experiencing a slower aging process compared to previous generations. With retirement ages already on the rise, it seems that not only is retirement being postponed, but so is the experience of old age.

Delaying retirement offers several advantages. Emotionally, remaining in the workforce can create more social connections, reducing the feelings of loneliness many retirees face. Physically, maintaining a routine that includes even light exercise can lead to improved health outcomes and increased life expectancy. Financially, the benefits of compound interest continue to grow, meaning that working longer and continuing to contribute to your pension can further bolster your retirement savings.

How much do I need to save?

Fortunately, for those curious about the potential expense of retirement, the Retirement Living Standards provided by Pensions UK offer a helpful resource. These standards estimate the costs associated with retirement living at three different levels.

The living standards for 2024/25 are:

Minimum - which covers all your needs, with some left over for fun. This costs £14,400 a year for one person, or £22,400 for a couple.
Moderate - which offers more financial security and flexibility. This costs £31,300 a year for one person, or £43,100 for a couple.
Comfortable - which includes more financial freedom and some luxuries. This costs £43,100 a year for one person, or £59,000 for a couple.

Here’s a graph to illustrate how much income you’d need from workplace and personal pensions, on top of a full new State Pension entitlement (more on this later!), to achieve these different lifestyles in retirement.

If you want to retire at 60, a good rule of thumb is that you’ll need savings of about 20-25 times your desired annual income in retirement. With this, you’ll also need to consider when you can access your pension money. You can start taking your personal and workplace pension at 55 (rising to 57 in 2028). But if you’re eligible for the new State Pension, you won’t be able to claim it until you reach ^{_state_pension_age} (which will rise to ^{_pension_age_from_2028} in 2028).

Waiting to take an income from your pension gives you more time to save and allows your investments to grow. This potentially could lead to a more comfortable retirement and better financial security in the future.

How to start from zero savings

Starting your pension savings from scratch can feel daunting, but you can still make great progress in your 50s. Here’s a simple guide to help you get started.

1. State Pension

Your State Pension entitlement is based on the National Insurance contributions you make and the number of ‘qualifying years’ you accumulate. You can see how much you could receive, when you can claim it, and ways to increase it at gov.uk. Simply fill in a few details to check your National Insurance record.

As of ^{_current_tax_year_yyyy_yy}, the full new State Pension is worth ^{_state_pension_weekly} per week, amounting to ^{_state_pension_annually} per year. To receive any State Pension, you need at least 10 years of contributions, while 35 qualifying years are required for the maximum amount.

Checking your State Pension forecast is essential for retirement planning, as it helps you understand what you’ll receive from the government. If you’ve been a caregiver, you may qualify for National Insurance credits through Child Benefit claims, so make sure to claim everything you’re entitled to.

2. Workplace pension

A workplace pension is a pension that’s arranged by your employer. If you’re eligible, you’ll be automatically enrolled and contributions will be taken directly from your wages and paid into your pension each month. Usually, your employer also adds money to your pension and contributions from the government will be added in the form of tax relief. Usually basic rate taxpayers get a ^{_corporation_tax} tax top up, meaning HMRC adds £25 for every £100 you pay into your pension making it ^{_lower_earnings_limit}.

If you’re unsure whether you already have a pension, you can use our ‘Do I have a pension?‘ tool could be a good starting point. You can also search for your previous employers and find out which pension provider they likely used.

New analysis conducted by the Centre for Economics and Business Research reveals that over £50 billion pounds in hard-earned pensions are at risk of being misplaced or lost. If you have several pension pots, consolidating your pensions can be a good way to get on top of your retirement savings.

3. Personal pension

While a workplace pension is set up by your employer, you can choose and set up a personal pension yourself. When you start a personal pension you’ll usually be given a choice of investment options. Once you’ve chosen a plan, you can begin making regular contributions and one-off payments.

Why not take a moment to check which plan you’re currently in and think about how much risk you’re comfortable with? You might also want to look into specialist plans that really resonate with your values and financial goals. Taking this personalised approach can help you feel more confident that your investment strategy is right for you.

For ^{_current_tax_year_yyyy_yy} the tax-free annual allowance is 10^{_personal_allowance_rate} of your salary or ^{_annual_allowance} (whichever is lower). This is the amount you can save into a pension each year while still receiving tax relief. If you earn less than £3,600, or you don’t earn anything at all, you’re still allowed to receive tax relief on pension contributions up to £3,600 gross. That means you can save up to £2,880 net plus a ^{_corporation_tax} tax top up.

Summary

Starting your pension saving from scratch in your 50s may not feel ideal, but it’s still worthwhile. With a clear plan and some discipline, you can still grow a sizable pension pot for your retirement. It’s your future that matters, so begin your planning today.

Consider it like planting a tree: the best time to plant one was 20 years ago, but the second-best time is now. Even if you’re starting in your 50s, you could have 20 more years to prepare for your future - which can truly make a difference.

Risk warning

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4 reasons why investing in your pension beats those Black Friday deals

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Your guide to going green (and saving money)

Here’s 7 simple swaps you can make to save the planet - and the pounds.

What happened at PensionBee in May 2022?

From how financial markets have performed in May to our latest Pension Confident Podcast episode - get all the latest news from PensionBee HQ.

May was another busy month at PensionBee as we made an exciting announcement: ‘regular withdrawals’ are coming soon! Our existing withdrawal feature enables customers who are of retirement age to draw down money from their pension pot whenever they choose. Following the release of this feature in the mobile app earlier this year, it’s now much easier for many of our customers to withdraw from their pension as they can now do it directly from their phone in a few clicks, as well as via our website

Keep reading to find out how financial markets performed last month and what we got up to at PensionBee HQ.

How did financial markets perform in May 2022?

During the first few months of the year we’ve faced several challenges affecting pensions; inflation, supply chain issues and the ongoing war in Ukraine. This combination of factors is driving down market prices, which you’ve probably seen reflected in the value of your pension pot.

It’s normal for the value of your pension to go down as well as up each day as the markets fluctuate. Naturally, though, it’s most concerning when the markets, and typically the value of your pension too, appear to be trending downwards for a sustained period of time.

The old saying “sell in May and go away” (referring to the historical pattern of an underperforming stock market between May and October), may have inspired the widespread sell off across even profitable stocks. The downward trend markets are following has raised the dreaded term: ‘bear market’.

For a more in-depth look at market performances, read What happened to pensions in May 2022?

Remember that your pension is a long-term investment when considering short-term performance. Past performance is not a guide to future performance. As with all investments, capital is at risk.

The Pension Confident Podcast Episode 6: Shariah investments

Globally, Shariah investment is on the rise. Recent data from Reuters estimated that the global market for Shariah funds has ballooned by more than 30^{_personal_allowance_rate} in the last decade. In this episode, Shariah investments: what are they? And are halal pensions only for Muslims?, we break down what Shariah investments include and exclude - and whether a Shariah pension may be right for you, even if you’re not Muslim.

We were joined this month by Ibrahim Khan, former lawyer and Co-Founder of investment and personal finance platform Islamic Finance Guru, and Martin Parzonka, Head of Product at PensionBee.

Subscribe and download our latest episode on Spotify or your favourite podcast app. You can read the transcript of this episode on our blog, or you can watch the episode on Youtube. Don’t forget to share your thoughts on social media or by leaving a review!

And don’t forget to tune in to next month’s episode where we’ll be discussing how to protect yourself from financial scams.

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What happened at PensionBee in June 2022?

From how financial markets have performed in June to our latest Pension Confident Podcast episode - get all the latest news from PensionBee HQ.

Few people could’ve predicted the economic turmoil the first half of the year has brought: headline inflation, market volatility, and rising interest rates. Suffice to say, 2022 has had a rocky start. But what effect has this had on personal finances?

You may have seen your investments, including your pension, take some unexpected turns. While it’s normal for your balance to go up and down, our current situation in the UK is (and forgive the term) ‘unprecedented‘. So, what do you need to know?

Inflation is a general increase in the prices of goods, the current rate of inflation rose this month to 9.1%.
Interest rates measure the cost of borrowing and reward for saving cash. The current interest rate is 1.^{_corporation_tax}, which means when you borrow money you’ll have more to repay, and when you save money you’ll earn more interest.

Why does this matter? In the UK, both inflation and interest rates are the highest they’ve been in decades. As inflation erodes the value of your pension, and high interest rates impact pensions too, those saving towards retirement will have been doubly hit this year.

Keep reading to find out how financial markets have performed this month and what’s new in PensionBee HQ.

How did financial markets perform in June 2022?

June began a sharper global market downturn as the UK officially entered into a ‘bear market‘ (a continued period where prices of company shares fell ^_basic_rate or more). Yet arguably the greatest surprise was the decline in the performance of bonds. So, what are bonds?

Bonds are basically loans given by investors to companies. Historically, bonds have been seen as ‘safe assets‘. As such they’re often included in pensions, especially for those approaching retirement, as they tend to fluctuate a lot less than stock markets.

Thriving on market stability, bonds aim to provide moderate growth for investors. However, recent surges in inflation and rising interest rates have pushed bonds between the proverbial rock and a hard place - leaving investors understandably concerned.

For a more in-depth look at bonds and the current market performances, read What happened to pensions in June 2022?

Remember that your pension is a long-term investment when considering short-term performance. Past performance is not a guide to future performance. As with all investments, capital is at risk.

The Pension Confident Podcast episode 7: The rising tide of financial scams

Last year saw a 3^{_personal_allowance_rate} hike in swindlers’ profits compared to the year before. Our latest episode of the Pension Confident Podcast discusses the rising tide of financial scams: what to look out for and how to stay safe from fraud.

We were joined this month by Michelle Cracknell CBE, Independent Non-Executive Director of PensionBee and former Chief Executive of The Pensions Advisory Service, Lisa Markey, Head of Security and Counter Fraud at the OBIE, and Jonathan Lister Parsons, Chief Technology Officer at PensionBee.

Subscribe and download our latest episode on Spotify, or your favourite podcast app. You can read the transcript of this episode on our blog, or you can watch it on YouTube. Please share your thoughts on social media or by leaving a review!

And don’t forget to tune in to next month’s episode where we’ll be discussing the importance of teaching kids about money.

What else is new?

At PensionBee HQ we’re constantly innovating to help make managing your pension simple. Following the success of our Easy Bank Transfer mobile feature (where you can make safe and easy payments to your pension from your phone) we’re now working towards rolling this out across the web too.

We’re looking for volunteers to help provide feedback on everything from exciting new products to existing features. If you’d like to participate in surveys, focus groups, prototype testing and more, sign up to become a HoneyMaker.

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What happened at PensionBee in July 2022?

From how financial markets have performed in July to our latest Pension Confident Podcast episode - get all the latest news from PensionBee HQ.

Investments have tumbled in a downward trend during 2022. Stock markets are reacting to an unfolding story of three economic shocks: the war in Ukraine, rising global inflation rates, and China’s supply chain disruptions. Due to these shocks, many investments within your pension will have felt the effects of this economic pressure. However, in July we saw positive movements, so are pension investments entering a recovery period?

Keep reading to find out how financial markets have performed this month and what’s new in PensionBee HQ.

How did financial markets perform in July 2022?

This year market volatility has veered into bear market territory, which is where markets are in significant decline for a few months at least. As investors, it’s concerning but this period has never been permanent.

July saw marginal growth as markets appeared to stabilise after a turbulent six months. Whether pension investments are entering a recovery period, or this is simply a brief moment of respite from this year’s volatility, remains to be seen. What we do know is in the US the S&P 500 rose by 6.64%, and in the UK the FTSE 250 rose by 5.83% in July.

For a more in-depth look at current market performances, read What happened to pensions in July 2022? And for your plan’s performance, read How PensionBee’s plans are performing in 2022 (as at Q2).

Remember that your pension is a long-term investment when considering short-term performance. Past performance is not a guide to future performance. As with all investments, capital is at risk.

The Pension Confident Podcast episode 8: How to teach kids about money

Our latest episode of the Pension Confident Podcast discusses how to teach kids about money. According to the Money and Pensions Service, almost ^_higher_rate of adults in the UK don’t feel confident managing their money.

We were joined by Laura Miller, Financial Journalist, Will Carmichael, Co-Founder and CEO of NatWest Rooster Money, and Emma Maslin, certified money coach, PensionBee customer and Founder of The Money Whisperer website.

Subscribe and download our latest episode on Spotify, or your favourite podcast app. You can also read the transcript of this episode, or watch it on YouTube. Please share your thoughts on social media or by leaving a review!

It’s not just the kids that are taking a summer holiday! We’ll be off this month and back in September to discuss how you can stop your money affecting your mental health.

What else is new?

We’re delighted to have recently won four Europe FinTech Awards for ‘Pensions Tech of the Year’, ‘FinTech of the Year’, ‘Diversity and Inclusion’ and ‘Best Employer’. In addition, we won ‘Employer of the Year (Small Firm)’ at the FTAdviser Diversity in Finance Awards and ‘FinTech Company of the Year’ at FinTech Awards London.

At PensionBee HQ we’re always enhancing features for your BeeHive - with the help of our user experience community of HoneyMakers! Using Open Banking technology we’re working to give our customers more flexibility to manage their finances from our website with our latest update: Easy bank transfer. In future, when initiating a contribution, you’ll be able to select from a list of supported banks and authorise your payment either in their mobile app (via a QR code you can scan) or via their website - whichever you prefer. This feature is currently an exclusive preview for HoneyMaker customers.

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E27: The cost of friendship with Dr. Tara Quinn-Cirillo, Niaz Azad and Brooke Day

The Pension Confident Podcast

PensionBee Content

28 Apr 2024

minute read

Apr 2024

Inside the BeeHive

Money Matters

The following is a transcript of our monthly podcast, The Pension Confident Podcast. Listen to episode 27, watch on YouTube, or scroll on to read the conversation.

PHILIPPA: Hello and welcome back to The Pension Confident Podcast. I’m Philippa Lamb, this month, we’re diving into the cost of friendship. Because friendship is priceless, right? But navigating social groups where some people are a lot better off than others can be a real minefield. Truth is, it’s not easy to talk about money, especially during social gatherings. We’ve all been there - you’re having a great night out with friends, then the bill arrives. Suddenly it’s that decision between saying “yes” to just going Dutch, or reminding everyone you didn’t have a starter. So here’s our question for today; how can you nurture your friendships and show up for your loved ones when your bank accounts don’t match? And what’s the best way to talk about money with friends?

Well, our guests are here to help with that. Dr. Tara Quinn-Cirillo, she’s a Psychologist and Associate Fellow of The British Psychological Society. She’s also Co-Director of the Conversation Starter Project - a grassroots project supporting people to manage their emotional health, loneliness and isolation. Hello Tara.

TARA: Hi. Thanks for having me.

PHILIPPA: Niaz Azad is Co-Founder of Millennial Money UK - an online platform that’s reshaping the conversation around money for young people. Welcome Niaz.

NIAZ: Hi. Thank you for having me.

PHILIPPA: And lastly, PensionBee’s own Head of Brand and Communications, Brooke Day. Welcome back to the podcast, Brooke.

BROOKE: Hello.

PHILIPPA: The usual disclaimer before we start, please remember that anything discussed on this podcast shouldn’t be regarded as financial advice or legal advice. And when investing, your capital is at risk.

How to discuss money fairly

PHILIPPA: Now look, everyone, I want to kick this off by asking you a question. What’s the most you have each spent celebrating friends? And did you regret it afterwards when you saw your bank statement?

BROOKE: For me, I was thinking about it, and I actually think it’s in the thousands. Which I know is...

PHILIPPA: No, really?

BROOKE: ...Yeah. But let me caveat that with it was a wedding abroad. There was a hen do. So I’m getting a holiday out of it, too. But actually, when you think the purpose of that trip and experience is for a friend, yeah it racks up. I had a great time and definitely no regrets.

PHILIPPA: Where was it?

BROOKE: In Ibiza.

PHILIPPA: OK, I can see how that can be really expensive! Tara, have you ever been there? Or are you too rational to overspend for friends?

TARA: No. Actually I have a really recent example as well. So I celebrated a friend’s birthday just a month ago, actually. And when you pay with your phone, it’s like Monopoly money. So the next day, after lots and lots of rounds of drinks, you kind of see the total and kind of go ‘ouch’. It’s a sting, but a nice sting.

PHILIPPA: That’s the thing. You do have the hangover as well, don’t you?

TARA: Yes, but I’m not admitting that!

PHILIPPA: Niaz?

NIAZ: I think mine’s the same as yours. It’s in the thousands and it’s destination weddings again. So I’ve had a couple of those. And we’re just, I think, starting out the season of weddings, so it’s very excitable. I don’t regret it, but - it was fun, it does get really expensive.

PHILIPPA: It’s a lot, and it’s always more than you think, isn’t it? These trips, you budget, you think, particularly if you’re going abroad, you think, “yeah, I know roughly what that’s going to be”. And weirdly, it’s never less, is it?

BROOKE: It goes out the window because not only is it a holiday where all expenses go out the window, it’s a wedding and a holiday. So you’re like, well, I want to do everything. I want to celebrate with everyone. I want to make sure it’s the best time for my friends and also for me. When you’re there, you sort of forget...

TARA: And you let go, don’t you?

BROOKE: Yeah.

TARA: And alcohol is this inhibitor. So we don’t think things through as clearly when we drink alcohol as well. So it’s almost the perfect storm.

PHILIPPA: Tara, what’s the psychology at play here? Why is it hard to talk about money with friends? Because we could all have said “I can’t afford to go on that trip. It’s too much for me right now” - but we don’t, do we?

TARA: It’s really hard. I was thinking about this on two levels to help people think through for themselves. So A, I think in British culture, we’re notoriously rubbish at having conversations, difficult conversations. But also when you think about friendship, there are so many values there. So you value that person, you value their wellbeing, their enjoyment. So you’re more likely to say “yes” to things and maybe put them first rather than yourself. And that’s maybe sometimes where we cause ourselves some issues.

PHILIPPA: Yeah, because we saw a survey that said most people would rather talk to their friends about sex than money.

TARA: So interesting. Yeah.

PHILIPPA: It’s fascinating, isn’t it? Because that’s supposed to be a bit of a taboo subject. But anything rather than talking about it “I can’t afford to do that”.

TARA: Sex doesn’t usually cause conflict, whereas money can cause conflict. It can fracture relationships. And innately human beings are social animals. We don’t like to be outside of the herd. So talking about money can mean that sometimes you might be excluded. So we’ll do whatever we can to avoid that, even if it means that we’re at risk with our bank balance.

PHILIPPA: It starts really early, doesn’t it, school? Even then, kids are aware of this stuff, aren’t they?

NIAZ: Yeah, definitely. I think it’s the status on the playground based on clothes and non-uniform days. And you’re like, OK, it starts quite early on and you have this sense of missing out.

PHILIPPA: There’s that pressure to keep up, isn’t there? It’s fear of missing out, whether it’s you or your kids, if you have kids. Or, almost worse, appearing mean.

BROOKE: Yeah, it could be that you’re saving for a house or investing your money, all those other things that people don’t realise that you’re doing with money. Outwardly, they may think, “but you’ve got the money to do that. Why don’t you want to do it?”. And you’re like, “I just don’t want to”. But I don’t want to feel like I have to explain the why.

PHILIPPA: Yeah, because another survey, Credit Karma survey, nearly half of millennials say they overspend to keep up with their friends. 8^{_personal_allowance_rate} of them who went into debt, kept their debt a secret from their friends, because there’s a lot of shame around that, isn’t there? But it’s easy to get into debt if you’re trying to keep up, isn’t it?

NIAZ: I think a lot of people don’t realise that they’re doing it. You know you earn a decent salary or you have a regular income and you might not have the cash now, but you’ve got a credit card, which gives you this line of financing and you’re spending money, you’re going out with the forethought that “I’m going to just pay this off at the end of the month”, not realising you’re in a cycle of just financing your lifestyle by doing so. A lot of people don’t actually realise it until they overstretch just that little bit one month, and then it goes into [debt], and that’s how they get you in the consumer credit industry, right?

PHILIPPA: But you don’t see the jeopardy?

NIAZ: Exactly.

PHILIPPA: If you’re in a job, you’re thinking, “it’s fine, I can manage this”.

PHILIPPA: Hey, it’s me, Philippa, just interrupting briefly to remind you to click on that subscribe button so you never miss an episode of The Pension Confident Podcast. Remember to share, rate, and review, too. Now I’ll leave you to enjoy the rest of this month’s conversation. Happy listening.

Navigating a financial divide

PHILIPPA: Should we talk a bit about how to handle situations? Because it feels OK-ish to be ‘hard up’, maybe when you’re at school or are a student. Certainly there’s this acceptable thing around being ‘hard up’. But when you start working full-time, it just becomes a lot clearer, doesn’t it, about how much people have got different levels of income, whatever job you’re doing. You’re working in the city, you’re earning a lot more than if you’re in teacher training or whatever it might be. And then you get different attitudes to spending, don’t you? We talked about it a bit, either you’re not bothered, it’s fine, I’ll catch up sometime, or you’re a saver. So even if you’re earning quite well, excuse me, you don’t necessarily want to spend it all on your social life. So how do we navigate that? How do you meet in the middle with your friends?

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

PHILIPPA: Oh, yeah.

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

PHILIPPA: Yeah, I’ve used those apps. I really like them. I’m thinking about also picking venues because talking about normalisation again, if you’re in a high earning job in your late 20s, early 30s, whatever it is, where you go is where your colleagues and your mates from your work circle go. But there’s an awkwardness around suggesting somewhere that’s obviously cheaper sometimes, isn’t there, though?

TARA: I bring that in, status. It’s a thing, isn’t it? Depending on where you work and how you work, you can get sucked into new circles. So friendships change, you may have your friends from school, you may have friends you’ve met at other forums, and then you may have friends that are more related to your work. And then you might then have to balance that across all those groups. It could be hard. You can easily get caught up. I guess a good friend might also be able to ground you and help you have those conversations, what we call the “tricky, cringey”, you know, “sweaty hand conversations”.

BROOKE: It’s interesting, though. There’s still those nostalgic places where you like to go back to, like a Pizza Express or a Nando’s where actually, even though you know they’re cheaper than some other places and not as nice, if you suggest it or someone else suggests it, you’re like, “oh, yeah, that really takes me back to being a child doing these things”. The nostalgic feelings.

NIAZ: It’s so true. Some of the most high-profile dinners I’ve had recently have been in Nando’s.

BROOKE: Yeah.

NIAZ: Genuinely with exited founders, with multimillionaires. And they’ve suggested, “why don’t we just catch up at Nando’s?”.

TARA: I wonder what the psychology of that is. Is there something about just being able to let go of all of that stuff and kudos and all of that and just connecting with people? Because you made a really good point about values that I always think as human beings, we get really stuck on goals, these measurable, attainable things, and it’s a bit of a vicious cycle. And actually, if you can come to what I call the layer underneath, which is our values, the who, what, when, where that really matters. That actually for you and your friends, what do you value about them and their time? Is it about the venue or what you get from them?

PHILIPPA: So thinking about that lovely phrase you used, “the sweaty palm conversation”.

TARA: It’s my favourite line. I use it every day in clinic.

PHILIPPA: I want to ask all of you if you’ve had one of those?

TARA: Every day.

PHILIPPA: Really?

TARA: Probably every day. To me, I always - so as a psychologist it’s really important. Think about your own footprint, so how your body and your mind responds when you’re under stress. So that can be stress around money, gifting, going away for the weekend. If you recognise how it shows up, that will help you to know when there’s a problem and then help you think what you’re going to do about it. So for me, sweaty hands is my number one thing that I notice when I’m under stress. If my hands are sweating, if I get an invite to something or I’m worried about money, it’s a sign that I need to take some time and think it through. Take a moment. Is sweaty hands your guys’ thing? I don’t know. Or what is your footprint for...

BROOKE: That’s really interesting.

TARA: ...feeling awkward or stressed?

BROOKE: I used to feel like that a lot about saying “no” to my friends, interestingly. I feel like I’m naturally a bit of a people pleaser. I used to find that really, especially in my 20s, I’d feel like if I say “no” to this, I’m not going to be invited again. They’re never going to speak to me again. They’re going to think I’m the worst person.

PHILIPPA: I think everyone feels that when they’re really young.

BROOKE: Yeah, I had to really work on it. Sometimes I now find that especially, I guess, if I’m tired and stressed, I just want the conversation done. I have a tendency to just say “yes”. But I really tried to practise because otherwise, I know what you mean, I do notice that I start to experience the physical effects of not actually doing the thing that was true to me.

NIAZ: I’m the same. It’s actually a big development point for me to lean into more difficult conversations.

TARA: My favourite phrase, too.

NIAZ: Because I’m quite conflict avoiding as well. But I’ve tried to think about how to better communicate in those instances, which, again, I’m probably not the best at yet. But like you, I’ll probably just be like, “yeah, OK, fine, whatever”. I’ll just put myself through some pain.

BROOKE: Just to get it done.

NIAZ: Just to get it done.

TARA: That, for me, is such an important point that sometimes as human beings, we get stuck on those goals. “I need to be able to have this perfect conversation about money and put these perfect boundaries in”. It never works out that way. So even if you can get to the point to go, “I find this really hard”. What can I do even with this anxiety? Can I even just start to maybe draft a text about the money situation? I might not send it for a day. Can I think about what the conversation would look like even if I don’t do it? Just those little baby steps which help you make room for that stress or that anxiety, and then you get used to it and it’s less of a threat.

How friendship expenses can snowball

PHILIPPA: We should move on, but I want to ask for examples, really, because I’ll tell you right now I’ve got one. Probably the worst one I’ve ever had around money was a friend I lent money to.

TARA: Yeah, interesting.

PHILIPPA: We’ll talk about this more later. But yeah, I had to have that conversation where I had to ask for it back.

TARA: Yeah, that’s hard.

PHILIPPA: And yeah, that was a really sweaty palm conversation because it’s so hard. You really feel you shouldn’t. Yeah, it was grim. Yeah, has anyone else?

NIAZ: Again, it’s probably not the best way to approach it, but I approach lending money now, assuming it’s money that I could afford not to get back.

PHILIPPA: Yeah.

NIAZ: That’s probably self-preservation as well, because I don’t want to have that conversation.

PHILIPPA: No, is it avoidance?

NIAZ: Yeah.

PHILIPPA: Yeah, it probably is.

NIAZ: Yeah, because even when I think back to when I have had that conversation, I don’t really like how it went. I don’t even like how I communicated in that because I cringe [at] myself for having that conversation, but it’s an important one to have. So I guess my new philosophy with lending money is on the working assumption that I could afford not to have it back.

PHILIPPA: We talked a bit about weddings earlier. I’d quite like to get down to the nitty gritty of weddings. Because there’s quite a lot of detail around navigating wedding trips, isn’t there? I mean, we’ve all been on them, right? I don’t know. I mean, is it worse? There’s hen parties, of course, aren’t there? And stags as well.

TARA: I think they’ve really changed. So since I got married, 17 years ago, the whole culture around hens and stag dos has changed dramatically. To me, sometimes they’re almost more dominant than the wedding.

PHILIPPA: So if you’re going to go on one of these trips, ways to keep the cost down? Sharing accommodation is one that comes into my mind.

BROOKE: Yeah, I’ve done that on quite a few trips. I think, I’m single and lots of my friends are married or in long-term relationships, and I think they often forget that suddenly when you don’t have two incomes paying for these things, the costs spiral even more. So whilst it might be, “oh, it’s only £300 between two”, when that’s £300 on your own, plus the outfit, the cabs, the gift, that’s suddenly £600. It’s not that you don’t want to do it, but for them, that’s £300 each, and they could do 12 that summer. But when you want to go to all 12 and you’re like, “oh, wow, that’s £600 a time”, without even realising.

PHILIPPA: Gifting is a vexed subject, isn’t it? Because it’s the transparency, I think. If there’s lists, then everyone pretty much sees and they all know what you’re spending. And that can be a thing when you’ve got people who are saying, “OK, I’ll buy all the glassware”. And you’re thinking, “I’ll just buy a saucepan then”, or whatever it is. And the ones where you have to give cash. And obviously culturally, in some cultures, that’s a long tradition. It’s quite new, I’d say, to the white British tradition, giving cash at weddings.

BROOKE: I went to a Greek wedding the other summer and we pinned the money on the bride and that was a really fun experience. But you knew that was culturally what you should be doing.

PHILIPPA: In envelopes or in cash?

BROOKE: No, in cash. There’s the people that want the colours that are more expensive in rows and you see the rows and stuff. But also I think it’s fun. It made us feel a part of their culture on the day.

PHILIPPA: I’ve been to weddings where it’s much more of an envelope tradition.

NIAZ: Yeah, I’ve had both. I don’t know how it’s been for you, but there was one where between the group everyone had decided an amount and everyone was giving the same amount. But then there’s been others where it’s like, “OK, we’ll just give cash”. I’m like, “OK, how much? What are we meant to give, how do you calculate what you’re going to give?”.

PHILIPPA: Because the numbers can be really big. Really big.

BROOKE: Who initiates that conversation on deciding the how much?

NIAZ: Just one of the groomsmen, to be fair. Then I think everyone just fell in line.

PHILIPPA: What are you going to say at that point? “Actually, that’s a bit more than I had in mind”.

TARA: Yeah, I’ve had that from both perspectives. So my other half’s family are Italian, so we had that with the money pinned and some in envelopes. And I remember thinking at the time, that’s very new to me, it was a little bit cringe to be honest. Physically seeing tangible money. We’re not that used to it nowadays. But from the other perspective, I thought it may be awkward when you’re opening those envelopes after your wedding. And it really wasn’t, there genuinely was no “ooh, you’ve given this, you’ve given this”. It was just people have given us these gifts and we’re really lucky.

PHILIPPA: Just moving on, there’s one thing I don’t want to forget to ask you about, and that’s flat shares, because I think this, post-pandemic, has become even more of an issue with home working. That’s like just different incomes under the same roof. Tips for navigating this, because I’m thinking about utility bills, which have been crazy in the last year or two. If you’re working from home and your flatmate isn’t, are we still splitting the bills down the middle, or...? That’s a conversation, isn’t it?

BROOKE: I think often it’s about social contract. Before you get into these things, having the conversation about it, so whether that’s lending money or how bills are going to be split. I think from my experience, when I was at university, it was the first time I’ve ever rented and moved away from home and we got this house and I definitely had the subpar room, and we just split the cost of the house and the rental amongst [us all]. And now I think, “why did I?”. I think of two friends, they had double bedrooms with ensuites and I lived next to the kitchen by the dishwasher.

PHILIPPA: And paid the same?

BROOKE: And paid the same. And now I think, I wish I’d had the courage to say, “hey, maybe that’s not fair and we should split it a different way because you’re getting a far better deal from this than me”. But I think because I was a bit of a people pleaser, I just said, “oh, it’s fine”. That’s just what you do. But I guess [I’ll] live and learn. And second to that, we set up joint bank accounts to split bills, and I didn’t quite realise then that that could impact my credit score moving forward. And I wish I’d learnt that sooner, that actually, had I lived with people that racked up loads of debt, that would then be impacting me in the future. So I guess that’s something to consider.

PHILIPPA: Yeah, that’s really worth thinking about.

Overcoming envy

PHILIPPA: Just looping back to difficult emotions - envy. Because we’re human, aren’t we? We find ourselves in situations where cash is nothing for some people. We’re struggling. Even though we love them, they’re our friends. It’s there, isn’t it?

TARA: I always say some emotions get a rough ride compared to others because they’re associated with behaviours that are more negative, but it doesn’t make the emotion invalid. And I always think anger and envy are two of those emotions. If someone’s sad, you don’t tend to judge them in the same way, or anxious. But we do get envious, we get jealous. And I always say, if you can try and split the emotion from the behaviour, look at how you respond. It’s OK to feel envy. It’s absolutely OK. But if that then means that perhaps you behave in ways that don’t fit with your values, is that OK with you? How does that sit?

PHILIPPA: Yeah. And it’s worth remembering, obviously, feeling envy ourselves - we’ve all been that. I’m sure [at] one stage or another in our lives. But it’s a toxic, horrible, horrible feeling eating you up. But on the other side of it, not great being the target of envy either. So if you’re the person who has worked really hard and maybe is still working really hard and is earning and succeeding, nothing wrong with that, is there?

TARA: Absolutely.

PHILIPPA: It’s tough to feel the target of envy.

NIAZ: That’s why I really try to challenge envy in myself, especially, but then in some of my friends as well. I try to challenge if any envious symptoms are showing up, because there’s a working assumption that you know how much someone has to spend on things without any understanding of their responsibilities. I think the negative symptoms of envy is when people just expect everyone else to be able to have money to spend because they’re earning more.

BROOKE: I’m with you, it’s perception. You might be earning a lot, or one may be earning a lot, but they could be also spending a lot. They may not have any savings for their retirement, for example, or investing. They could have racked up loads of debt. I guess to your point, you don’t know what people’s...

TARA: What’s hidden?

BROOKE: ...Yeah, it’s just how they’re presenting. But someone who’s earning a lot less could have far better financial wealth and wellbeing than someone who’s earning a lot more, but it’s perception.

TARA: That’s a really good point, actually. So I think something people may be able to take away from this then is that none of this is easy. There’s no formula, there’s no tick box for how we should navigate money, friendships. But we can learn and it takes time, and it takes practice. And sometimes it takes a bit of leaning into tricky stuff, but we can get there and it’s flexible, it’s mouldable.

As you and your friends get older

PHILIPPA: It’s a continuum, though, isn’t it? Because this isn’t a ‘job done’ situation. Because I was thinking as the decades tick by these financial gaps, they can get bigger, and more marked, can’t they? And the signifiers get really obvious, don’t they? Like better house, better car, kids at private schools, whatever it is that people spend their money on. And that, it seems to me, is a danger point for friendships that might have survived that far, because then it just gets to be a bridge too far. You’re living in different areas. You’re just living different lives. And friendships start to really fade because you don’t see each other, because you don’t see each other, because you’re living different lives. And then you can lose people, can’t you?

BROOKE: I think I keep seeing statistics around how millennials are about to experience the greatest transfer of wealth as their parents or relatives start to die. I think that it’ll be an interesting point to navigate when people are suddenly getting an inheritance.

NIAZ: Like you said as well, I think it’s $100 trillion that’s going to transfer between generations...

TARA: Wow!

NIAZ: ...which is the largest ever intergenerational wealth transfer. That’s going to drastically change things for people over the next 10 years, or 10-20 years definitely, and it’s going to be noticeable.

I’ve witnessed the positive side of our friendship group being quite competitive. We studied together, and I think it’s definitely helped everyone in our group progress in their careers to a certain extent. We’ve seen the competitive side and I think everyone’s doing quite well because they’ve been nudged by their friends. But it’s a double-edged sword, right? Because you can also see the forks in the road with drastically different wealth down the line.

TARA: Do you think it changes people? Does it change friends, how they are, their outlook?

NIAZ: I think it depends. Sorry.

BROOKE: No, go for it.

NIAZ: I was going to say, I think it depends on the friendship you have with people. One of the things that I found is, I’ve been reconnecting with friends from my childhood.

TARA: Wow.

NIAZ: That’s a pre-status, pre-wealth bond that you have and none of us care what we’re doing.

PHILIPPA: Is that right? You still feel connected?

NIAZ: It was actually in the last two years, I’ve connected with three or four friends I knew from more than 15 years ago. Immensely successful friends, actually, some of them public figures, and we spoke nothing about that. It was like, we just go back to our childhood. So I think it depends on the kind of friendships you have, whereas friendships you make at a certain stage in your life, which are, I don’t know, the context of those friendships are the wealth that you have, the status that you have. I think those are much more likely to change based on wealth because as you climb or descend, I don’t know.

TARA: That default conversation, isn’t it? Default conversation might be more around work if that’s the sphere that you’re...

PHILIPPA: It might be, but you know where they’re at, don’t you? Before you reconnect, because we live in a connected social media world. Would you feel, do you think, equally relaxed with early friends who are just living very, very ordinary lives, very different to your own?

NIAZ: I think so because of the nature of those friendships. We went back to a random café, for example, when we were in school that we used to go to, and it was the nostalgia, right? Then we’d laugh about certain things. I think there’s a craving. I think as humans, you know the science behind this better than me. There’s a craving for nostalgia and innocence and that, especially when you’re in careers which are quite demanding and...

TARA: Quite grounding sometimes, isn’t it?

NIAZ: ...Yeah, and as a society that’s so status-driven, I think there’s a yearning for something much simpler, which I found. I don’t know. That’s been my experience.

BROOKE: I agree. Those summers where you’re at school, you’ve got six weeks [off], you have no money, but you’re having the time of your life.

When life throws you curveballs

PHILIPPA: OK, I’ve got one that I’ve been interested in for a long time. What happens if your circumstances change radically? We can talk about planning, how we think our career and life trajectory is going to be. You get into these tribes effectively, don’t you? And whether you choose it or not, it happens. And then sometimes stuff happens. It might be a divorce, it might be illness, death, or it might be a massive inheritance if you’re really fortunate. Suddenly, everything is different for you. And I’m wondering how you fare in your tribe. Can you stay in a tribe where, for example, you can’t afford to do the stuff you used to do with those people, or the other way around? Suddenly, you’re just way better off. What do we feel? Have you ever experienced that? Has anyone?

BROOKE: I’ve had friends who have been married and already got divorced, and I guess they were much further ahead in their view, and then they came back to square one. But from our side, we didn’t treat them any differently because I think for me, the connection is beyond how much money we all have. It’s like, “I love and care for you, and I want you to be involved in the things that we’re doing”. So if that means that we’re funding a bit of that for a time. I’ve definitely been in occasions where we’ve really wanted some friends to come. One of my friends had a child much earlier than everyone else, and we wanted her to still be involved. I remember us making a group decision; “let’s just pay because we wanted her to come irrespective”.

PHILIPPA: How did that go? Was she OK with that?

BROOKE: Yeah, she was fine.

PHILIPPA: It wasn’t weird?

BROOKE: No, we asked her. It wasn’t like, “oh we’ve just paid for it. You’re coming”. We were like, “we’re all happy to”. She was like, “do you mean that?”. I think if you’re good enough friends with people, they’re not going to offer if they don’t truly mean it.

TARA: It comes down to values, really, doesn’t it? What are the core values of the group that you’re in? Or you can have different groups, but also you can have subgroups. You don’t have to - if there’s a group of you that do everything together all the time. Sometimes we can get a bit stuck in rules, rule-bound behaviour. But actually, it may be that “a few of you are going to do that thing, and I’ll join you later, or I’ll dip out of this and catch up with you another time”. Sometimes we lose that flexibility of thought, don’t we?

BROOKE: I guess to your point, Tara, about when you got married, you didn’t know how you’d feel receiving the money. I guess if you’re that person in that, you might be the one getting divorced or receiving an inheritance or experiencing grief. I guess that could be the challenge, where as friends...

PHILIPPA: Oh, yeah, because you’re already raw, aren’t you?

BROOKE: ...you feel like you’re supporting and you’re helping them navigate it, but they may have very different feelings showing up for them.

PHILIPPA: I think so, because I think if people are going through those really traumatic experiences, they’re already feeling raw all over. So they’re possibly inclined to be even oversensitive to the difficulty because you know it’s like “everything’s falling apart. And now I need to just absent myself from all the stuff I did before because everything is different for me”. So there’s the role there, isn’t there, for friendship in making them feel reassured. That’s just not happening, and it’s not about the money. But it’s delicate ground, isn’t it? That sort of conversation.

TARA: I always love to ask people that. Sometimes we avoid conversations because our brain is brilliant at trying to protect us and say, “don’t say this. This is what’s going to happen”. It’ll fast forward to the future at a rate of knots. But have you ever had a conversation with someone where you’ve opened up and you’ve been really raw and regretted it? Because most people don’t. And usually you might find people go, “oh, I’m so glad you said that because that’s me too”. And it begins to just lift that pressure.

Lending money to friends

PHILIPPA: I’ve got my eye on the clock, and I’m going to ask, actually, this is a good point to ask - lending money. We touched on it earlier. I’ve done it myself, twice. It went really, really badly on one occasion and has gone swimmingly on another. Just no impact on our friendship at all. I’m delighted I did it on both occasions, but it was hard. But of course, you don’t have to, do you?

NIAZ: No, no you don’t.

PHILIPPA: Just to throw that around, just because you can, doesn’t mean you have to, does it? That’s a difficult conversation.

TARA: It’s OK to say “no”.

PHILIPPA: Well, you say that? But how do you say it?

TARA: It’s the hardest thing in the world, isn’t it? I guess, coming back to, you might have a baseline as to if someone’s saying, “oh, I’d really love to come in this night out, could you lend me money?” That might not fit with your values. But if you have someone who’s in perhaps a more risky situation, “I’m going to lose my tenancy” or “I’ve got a bill I can’t pay”, you may feel differently about that. So there can be different levels of decision making... I think that’s quite nice...

PHILIPPA: How do you say “no”, Tara?

TARA: I just say “no”. Psychologists do it right every time. No, I don’t, I’m awful.

NIAZ: It seems so easy.

TARA: I always think it’s really refreshing when mental health professionals will say we’re humans and we can be really rubbish at it. Sometimes I’ll just ignore [it], bury my head in the sand.

PHILIPPA: Well, that’s the thing is, like Brooke mentioned earlier, just because you’re earning big doesn’t mean you necessarily have a lot of disposable cash.

TARA: Absolutely.

PHILIPPA: We’ve touched on it all around and maybe you’re saving, maybe you’re saving for your pension. We’re a pensions podcast, we like it when people save for their pensions. And that can be significant sums of money. You might have all sorts of stuff going on that no one knows about, caring responsibilities, whatever it is, putting siblings through college, whatever. They’re all valid reasons, aren’t they? For saying, “actually, no, I really don’t want to do that. I need that money. I’ve got a pot where that money is going”.

BROOKE: Yeah. And I think it’s assessing your own financial resilience before you do that, which may also change during the course of the lending. I guess we’ve all [been] living through this cost of living crisis, inflation rate has gone up, interest rate - you may think you have more money spare to lend before than you actually do in the reality, when people are dipping into their reserves. I think it’s assessing truly your financial resilience before lending, but also not feeling obligated to explain the “no”.

NIAZ: I think it’s the exploitation thing that you mentioned earlier. I think when you feel like you’re being exploited, that’s when you can start to have a sweaty palm conversation.

Knowing when to let go

PHILIPPA: There’s a thought in my mind as well that not all friendships have to last forever, do they? I don’t want to be negative about this.

TARA: Absolutely. 10^{_personal_allowance_rate} agree.

PHILIPPA: We all know people we used to know that have faded from our lives for one reason or another. And that’s kind of OK, isn’t it? If it’s for good reason.

TARA: I completely subscribe to that. So I’ve written about this quite a lot, actually, that during the pandemic, a lot of people realised who checked in, who were the ones to initiate contact when we couldn’t see each other. And I think [that] the most healthy thing you could do for yourself is to do a little refresh of your friendships. And sometimes we can get really caught up in, “but we’ve been friends for so long”. You can still have compassion for the past and the relationship as it was, but it’s OK if it doesn’t work for you now. It’s absolutely fine. But again, it’s a bit cringey. I think sometimes then we can get stuck with friends that perhaps are toxic and not good for us because we feel we should do, we must do.

PHILIPPA: Known them for years.

TARA: Yes. You can still have love and fondness for that history and that memory, but it doesn’t mean it has to work now.

PHILIPPA: And new friends.

BROOKE: Yeah!

PHILIPPA: Let’s not forget.

TARA: That’s OK, too.

PHILIPPA: There are always new friends. That seems a good place to wrap this up, I think, doesn’t it? Thank you all very much indeed.

TARA: You’re welcome.

PHILIPPA: Thank you all very much. It was so thought-provoking yet another way that money plays a central role in all our lives. If you enjoyed this episode, please do rate and review. We always love to hear what you think. Don’t forget, you can watch us on YouTube. And if you’re a PensionBee customer, you can listen to all the episodes in the PensionBee app. Just before we go, just a last reminder, anything discussed in the podcast shouldn’t be regarded as financial or legal advice. And when investing, your capital is at risk. Thank you for being with us.

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

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