Read on to find out what else we were up to last month, and why our core value of love has been shining through.

We made it even easier to get in touch with your BeeKeeper

We’re always working hard to bring a leading pension product and ensuring parity between our website and app is a key part of this. Last month, we introduced a support function to the app, so you can easily find all the details you need should you want to contact us.

Next time you log in, look out for a question mark icon in various parts of the BeeHive. When clicked you’ll see email and phone contact details, plus some handy FAQs to help you find the information you’re looking for faster.

We’re campaigning for more transparency in pensions

We’re passionate about increasing transparency in pensions, so savers can better plan for their retirement. Whether that’s by campaigning for a ban on exit fees or advocating for the inclusion of charges in mandatory simpler annual statements, we want the pensions industry to work together to help put savers back in control of their money.

In October, we co-authored a report with the UK fintech industry body Innovate Finance and Open Banking data network Plaid. Together we’re advocating for Open Banking technology to be used more widely in pensions so savers can see a complete picture of their financial health and access digital tools that will help them make smarter financial choices.

In 2018 PensionBee became the first pension provider to utilise the Open Banking APIs for pensions, enabling our customers to see their live pension balance displayed alongside their live current account balance in some of the UK’s most popular money management apps including Starling, Money Dashboard, Yolt, Emma and Moneyhub. To this day we’re still one of only a handful of pension providers that allows customers to share their data with other FCA regulated companies. To find out more and read the full report visit the Innovate Finance website.

We’re officially the UK’s best pension provider

Last month, we were delighted to be crowned ‘DC Pension Provider of the Year’ at the industry’s most prestigious awards, the UK Pensions Awards. Recognised for our high level of innovation, performance and customer service, we saw off competition from some of the biggest names in pensions including Aviva, Scottish Widows and Legal & General.

To further cement our position as the a leading online pension provider, we also collected the award for ‘Pension Provider of the Year’ at the Workplace Savings and Benefits Awards, following a high commendation in the same category last year.

We’re aiming to end the year on a high and this month, we hope to be named as Spectator Magazine’s ‘Economic Innovator of the Year’, with the European Pensions Awards following close behind in early December, where we’re shortlisted in two categories: ‘Diversity’ and ‘European Pensions Innovation’. We’ll be sure to let you know how we get on via social media and our blog.

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 let us know in the comments section or over on social media, and we’ll feed it back to the team.

‍

Last month, we were busy bees planning ahead for what looks set to be a fantastic 2021 and beyond, with lots of new initiatives and product innovations on our roadmap. Read on to find out more about some of the exciting things you can look forward to, as well as our highlights from November.

We’re taking steps to become a public company

Last month, we were delighted to share the exciting news that PensionBee is exploring a listing on the London Stock Exchange. We believe this is the natural next step in our development, and will allow us to vigorously keep pursuing our vision: to live in a world where everyone can look forward to a happy retirement.

We’re currently in the preparatory phase of planning and once this phase is finalised, it’s likely that the listing will be completed in the next 12-18 months, market conditions permitting.

It’s our ambition to make PensionBee a company that’s not only built for our customers, but owned by our customers too, which is why we’ll be exploring opportunities for you to participate in the listing itself. We’ll share more information on this process in due course, but in the meantime it’s business as usual at PensionBee!

We need your help to make fossil fuel free pension saving a reality

Earlier this year we surveyed customers in our Future World Plan, who told us they were concerned about climate change, and wanted the option to exclude fossil fuel producers from their pensions. In response to this customer feedback we’ve been working hard to create a brand new Fossil Fuel Free pension, and we’re almost ready to launch.

The new PensionBee Fossil Fuel Free Plan will exclude over 200 companies with reserves of oil, gas and coal, as well as tobacco producers and manufacturers of controversial weapons.

The new plan is managed by Legal & General and will have one simple annual fee of 0.75%, with 50% off for the portion of your pension over £100,000. In order to launch the plan at this price point, we need £100 million in commitments from customers seeking to go fossil fuel free. We’re a third of the way there with over £35 million already committed, but we need your help to reach our target before the end of the year.

If you’d like to drive positive environmental change while saving for your retirement, simply click here to log in and commit to switch your plan. We’ve recently introduced the ability to switch plans natively in the app, as part of our broader vision of aligning the app and web experience. So if you’re logging in via the app, simply click on the ‘Account’ tab in your BeeHive and select ‘Switch Plans’.

Please note, your money will stay invested where it is until the Fossil Fuel Free Plan is launched. With investments, your capital is at risk. Pensions can go down in value as well as up, so you could get back less than you invest.

Introducing The Buzz – named by you, for you

In October, we used our social media channels to ask for your help in renaming our blog. After dozens of brilliant Bee-inspired suggestions, and a team vote, the decision was unanimous, with The Buzz coming out on top!

We needed a new name as we’ve been working hard behind the scenes to revamp the blog to make it even easier for you to find the content you’re looking for, so you can better plan for a happy retirement. We kept only the very best articles from the past five years and have reduced the number of categories down to five for simpler navigation.

The next time you visit The Buzz you’ll notice a fresh new design, which showcases featured articles and highlights from our press page, as well as the most recent blogs. There are more improvements still to come, from the introduction of author pages showcasing a diverse range of experts to new-look articles.

As always, we’d love to hear your feedback and involve you in the process. You can get in touch by emailing engagement@pensionbee.com or via Twitter.

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 let us know in the comments section or over on social media, and we’ll feed it back to the team.

‍

Last month, things at PensionBee HQ wound down for the festive season, and we spent some time reflecting on what a memorable year 2020 was for all of us. From administering more than a billion pounds of pension savings on your behalf and winning some of the pensions industry’s most coveted awards, to the success of our fossil fuel free campaign and the launch of online game Scam Man & Robbin’, we took some time to celebrate our achievements and our team had a well-deserved break over the holidays.

Despite the challenges we’ve all faced as a result of coronavirus, we managed to reach many significant milestones due to the hard work and dedication of our team and thanks to you, our lovely customers, who signed up in your thousands last year. We’re back to work now and looking forward to building on our successes in 2021, and helping many more savers in the UK plan for a happy retirement.

We ended 2020 on a high

Last month, PensionBee picked up its first European Pensions Award, winning in the ‘European Pensions Innovation’ category. We’re thrilled to be recognised for displaying ‘true innovation by filling a gap in the market to meet customer needs, achieving impressive results along the way’.

We were also named ‘Fintech Of The Year’ at the AltFi Awards, which recognise outstanding achievement in the Alternative Finance and Fintech industries. PensionBee was praised for ‘driving innovation, moving the industry forward, and growing significantly in the past 12 months’.

Our CEO, Romi, discussed the importance of diversity and inclusion in financial services

Read our CEO, Romi Savova’s, thoughts on why PensionBee’s desire for inclusion is linked to our vision to live in a world where everyone can look forward to a happy retirement, and learn why she believes it’s the role of financial services to help people lead better lives in FT Adviser.

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 let us know by emailing feedback@pensionbee.com.

‍

We hit the ground running last month, experiencing our busiest January yet! We’re looking forward to building on this momentum throughout 2021, and helping many more savers in the UK plan for a happy retirement.

Read on to find out what we were up to in January, from the exciting launch of our new flexible pension for the self-employed and our new Fossil Fuel Free Plan, to improving how we update you on your plan’s performance.

We launched the PensionBee Fossil Fuel Free Plan

Just before Christmas last year, we were delighted to announce the arrival of our new Fossil Fuel Free Plan. It’s thanks to you that we were able to make this a reality in December, showing the pensions industry that there’s strong demand for a product that completely excludes companies with oil, gas and coal reserves.

Our newest plan excludes over 200 companies with proven or probable reserves of oil, gas and coal, as well as tobacco companies, manufacturers of controversial weapons and persistent violators of the UN Global Compact. It’s managed by Legal & General and has an annual management fee of 0.75%, with 5^{_personal_allowance_rate} off for the portion of your pension over ^{_high_income_child_benefit}.

If you’d like to invest in line with your values and drive positive environmental change with your pension, simply log in and switch your plan free of charge.

With investments, your capital is at risk.

We launched our flexible pension for the self-employed

Last month, we were excited to launch our flexible pension for the self-employed, and offer our award-winning product to a growing proportion of the UK workforce who have long been underserved by the pensions industry. Without the benefits of Auto-Enrolment, the self-employed are at a significant disadvantage, with data from workplace pension scheme Nest suggesting that just 24% of self-employed people are saving into a pension.

Our new self-employed pension was designed with sole traders and directors of limited companies in mind to help make saving as easy as possible. That’s why savers can now start a new pension from scratch by setting up a contribution of any size, if they’ve never saved towards their retirement before. It’s available via the PensionBee website, and Starling customers can find it in the Starling Business Marketplace. As always, there are no minimum contribution amounts, so self-employed savers can contribute to their pension flexibly, whenever their income allows.

We’ve changed the way we update you on your plan’s performance

Last month, we simplified how we communicate the performance of your pension, so instead of receiving a detailed plan update from your money manager every three months, we’ve published a brief quarterly update written by the PensionBee team. We hope this change makes it even easier for you to understand how your plan’s performed, in comparison to our other plans and the wider markets.

Our latest update is available to read on the PensionBee blog and discusses the performance of the PensionBee plans in 2020, when compared to the UK and US stock markets. Last year the UK stock market performed at -12%, whilst the US stock market returned 18%. Against this backdrop, all of our plans performed well, substantially outperforming the UK stock market thanks to the benefits of diversification. You can see how your plan performed here.

Your updated fact sheet will soon be available to download in the BeeHive and, as always, we’d love to hear your feedback. You can get in touch with PensionBee by emailing engagement@pensionbee.com.

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

We ended 2020 on a high

Back in December, PensionBee picked up its first European Pensions Award, winning in the ‘European Pensions Innovation’ category. We’re thrilled to be recognised for displaying ‘true innovation by filling a gap in the market to meet customer needs, achieving impressive results along the way’.

We were also named ‘Fintech Of The Year’ at the AltFi Awards, which recognise outstanding achievement in the Alternative Finance and Fintech industries. PensionBee was praised for ‘driving innovation, moving the industry forward, and growing significantly in the past 12 months’.

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 let us know by emailing feedback@pensionbee.com.

‍

While February may be the shortest month of the year, our team were busy bees last month! From simplifying the design of our emails to winning five Boring Money Best Buys Awards, read on to find out what we were working on in February.

We redesigned our transactional emails

In response to your feedback we updated the design of our transactional emails, such as those you receive from your BeeKeeper about pension transfers, contributions and withdrawals.

The new design is much easier to read and follows the same format as our monthly newsletters, enabling you to find the information you need and effortlessly navigate to your account.

As always we’d love to hear your thoughts: you can get in touch by emailing feedback@pensionbee.com or via Twitter.

Don’t miss out on your unused tax relief

It’s almost the end of the current tax year which means you only have a few weeks left to use up your allowance for the 2020/2021 tax year (up to 100% of your earnings, to a limit of £40,000 for most people).

You can also carry forward unused allowances from the previous three years. Most basic rate taxpayers will automatically get a 25% tax top up on their personal pension contributions, while higher rate taxpayers can claim a further 25% through their Self-Assessment tax returns, and top rate taxpayers can claim an additional 31%.

If you’d like to pay a lump sum into your pension, make sure you allow enough time for it to reach us by 5 April. Direct Debits, for example, can take up to 12 working days to be received and invested so don’t leave it until the last minute. You can make contributions into your pension via your BeeHive.

We won five Boring Money Best Buys Awards and we were nominated for a Good Money Guide Award

In February, we scooped five Boring Money awards:

• Best Buy Pension
• Best Buy Beginners Pension
• Best Buy Sustainable Pension
• Best Buy Digital Pension
• Best Buy Customer Service

We’re especially thrilled to be recognised for our customer service in a newly created award for 2021 which acknowledges the additional pressures faced by financial services companies as a result of the pandemic. Winners were chosen based on customer review scores, as well as Boring Money’s own testing and evaluation of call response times.

Last month, we were also delighted to take the top spot in TechRound’s ‘Fintech50 for 2021’ list which ranks 50 of the most innovative fintech companies in the world.

We were also nominated for a Good Money Guide Award, in the ‘Investing Accounts’ category. The Good Money Guide Awards aim to champion financial services companies that excel in innovation, product, and customer service. The winners will be decided by a public vote, so we need your help! To vote for PensionBee, simply leave a review of our product and customer service on the Good Money Guide website.

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 let us know by emailing feedback@pensionbee.com.

‍

March has been a busy month at PensionBee HQ, as we come to the end of the tax year. From confirming our Intention To Float on the London Stock Exchange to voluntarily publishing our gender pay gap, read on to find out what else we’ve been up to in March.

We confirmed our Intention To Float

Yesterday we were excited to confirm our Intention To Float on the London Stock Exchange. This brings us one step closer to realising our ambition of becoming a public company and helping many more consumers plan for a happy retirement.

We’re working on some important product improvements

We’re always looking for ways to enhance our product and have several exciting projects underway to make it even easier for you to manage your pension. We’re currently working to update the amount of information you can see in your BeeHive when you’ve added a pension to transfer. In the future you’ll be able to see a more detailed indication of the progress being made, and the next steps you can expect before your transfer is completed.

We’ll soon be introducing the ability for you to opt-in to two-factor authentication. This will make your account even more secure and give you greater peace of mind. As always, we’d love to hear your thoughts on the future product improvements you’d like to see. You can get in touch by emailing feedback@pensionbee.com.

We’re strides ahead of the industry when it comes to diversity

This March, we celebrated International Women’s Day and the level of gender diversity we’ve achieved at PensionBee. As a member of the Women in Finance Charter, we regularly report publicly on female representation, and have achieved gender parity at all levels of the company.

March also saw us voluntarily publish our gender pay gap for the first time. We were proud to disclose a median hourly pay gap of just 4%, and a median bonus pay gap of 0% among our team, as at December 2020. The gap is in line with our target of 0%, with a variance of +/- 5% owing to the overall size of our employee base, which is currently below the 250 employee reporting threshold.

We know that where a pay gap exists for women, a pension gap will follow, so we’re passionate about campaigning for wage equality and tracking these metrics as early as possible.

In fact, we’re currently conducting research on the gender pay and pension gaps, and are particularly interested in speaking to customers who believe they have been impacted by this. If you’d like to share your story with us, and would be happy for your name and photograph to be printed in a national newspaper (such as The Telegraph or The Express), or used in our marketing materials, please get in touch by emailing engagement@pensionbee.com. We’re passionate about transforming the pensions industry to better serve consumer needs, and would love to hear about your experiences.

We’ve had plenty of reasons to celebrate

In March, our Chief Engagement Officer, Clare Reilly, was named in the Women in FinTech Powerlist 2020, which shines a spotlight on the women leading innovation in financial services. Clare was recognised in the ‘Senior Leaders’ category for her work driving forward change in the pensions industry, and for her pivotal role in launching one of the UK’s first mainstream fossil fuel free pensions.

We were also delighted to receive our 4,000th Trustpilot review earlier this month. Almost 3,500 of these are five-star reviews, which highlight our unique combination of smart technology and dedicated customer service.

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 let us know by emailing feedback@pensionbee.com.

‍

April was a month of huge significance as we achieved our goal of becoming a publicly listed company. We’re extremely proud to have reached this special milestone and look forward to continuing to make positive changes in the pensions industry – whether that’s campaigning for the rights of consumers or bringing you the pension innovations you want to see.

Read on to find out what else we got up to in April.

We became a publicly listed company

Last month, we were delighted to be admitted to the High Growth Segment of the Main Market of the London Stock Exchange (PBEE). Our IPO marks the culmination of seven years of hard work, and we’d like to thank our dedicated and talented colleagues for making this happen, as well as our wonderful customers who are at the heart of all we do.

While it’s very much “business as usual” at PensionBee, our IPO will allow us to continue to grow rapidly and innovate. A portion of the money we’ve raised will be invested in our technology platform capabilities and used to accelerate product innovation. We have lots of new features and product enhancements planned to make it even easier for you to plan for retirement, and we’re excited to share them with you in due course.

We introduced some new product features

We’re in the process of rolling out two-factor authentication to make your account more secure. With two-factor authentication, you use your usual log in details with an extra form of identification, in this case an SMS message with a verification code. You can now enable two-factor authentication in our mobile app, and if you usually access your account via our website, you can expect to see two-factor authentication arriving later this month.

You told us you wanted more clarity about the progress of your pension transfers so last month, we introduced functionality for you to see more information in your online account. If there are any outstanding steps required from your side, you’ll be able to action these straight away through the BeeHive. This feature is currently available in our web app and we’ll soon be introducing it in our mobile app.

As always we’d love to hear your feedback! You can get in touch with PensionBee by emailing feedback@pensionbee.com.

We collated your views on how your pension’s invested

Back in March, we ran our annual survey of customers in the Tailored Plan, our default plan, to learn more about the kinds of companies that our customers expect their money to be invested in, and what kind of action you want us to take on companies and industries with controversial business practices.

Here’s what you told us:

• Companies should treat their employees fairly, and work harder to respect the environment
• The fast fashion industry isn’t trustworthy
• The pandemic motivated you to save more

These insights will help us to tailor your pension to your future needs, and we intend to share the findings with your money managers to inform their thinking on stewardship and exclusions. We also plan to amplify your voices in the national media in order to campaign for change. You can read a detailed summary of the survey findings on our website.

If you’d like to share your story with us, and would be happy for your name and photograph to be printed in a national newspaper (such as The Sun or The Guardian), or used in our marketing materials, please get in touch by emailing engagement@pensionbee.com. We’ll arrange a short phone call with you and will pay between £75 and £250, depending on how your case study is used.

We’re especially keen to hear from anyone who’s drawn down via a previous pension provider and experienced difficulty taking money out of their pension.

How did your pension perform in Q1?

Our latest quarterly update is available to read on the PensionBee blog, and discusses the performance of the PensionBee plans, when compared to the main UK index, the FTSE 100, and the American S&P 500. The start of the year has brought hope that the end of the pandemic is in sight, following a successful start to the vaccine rollout and the recent reopening of shops, restaurants, pubs and other parts of the economy. As a result, we’ve seen UK stock markets steadily recovering towards pre-pandemic levels, whilst US stock markets are continuing to reach new highs.

Check your 2020/21 Annual Statement in the BeeHive to see an overview of how much you’ve saved and how much it could be worth by the time you retire, as well as a breakdown of our annual management fee in pounds and pence. If you’d like to see how your plan’s performing in Q2, don’t forget you can log in to your BeeHive 24/7 and see your real-time balance. You’ll also find our retirement planner which can help you calculate how much you need to save for a happy retirement.

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

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 let us know by emailing feedback@pensionbee.com.

‍

Last month, we made a buzz on social media as we celebrated reaching 500,000 Registered Customers by adopting 500 worker bees on World Bee Day. Exceeding half a million customers is an exciting milestone and we look forward to helping many more savers plan for a happy retirement.

Read on to find out what else we were up to in May.

We worked on some important product improvements

You now have the ability to set up two-factor authentication via our website. Once enabled, every time you log in with your email address and password, we’ll send a six-digit security code to your phone to make your account even more secure. Don’t forget that you can also set this up via our mobile app by heading to the ‘Account’ tab once logged in to the BeeHive.

This month we’ll be focussing our efforts on improving the way we process pension withdrawals, so it’ll be even easier for customers aged 55 and over to access their savings. As ever, we’d love to hear your feedback and ideas! You can get in touch with PensionBee by emailing feedback@pensionbee.com.

Watch our new documentary, PensionBee explained

We were busy bees last month, working on a short film that explains everything from who PensionBee is to how our product works. Head over to our YouTube channel to hear from several of our lovely customers, learn about our long-term vision and find out why we’re committed to achieving wider representation and equality in the pensions industry.

Become a HoneyMaker

We’re always trying to improve your experience and ensure our product’s easy-to-use and accessible to all. Sign up to become a HoneyMaker and you’ll be able to have your say on the features that are most important to you and your pension. Help us shape the future of PensionBee!

We’ve been shortlisted for 5 UK Pensions Awards

We’ve been shortlisted in five categories at this year’s UK Pensions Awards including ‘DC Pension Provider of the Year’, ‘Technology Innovation of the Year’, and ‘Diversity and Inclusion’. We’ve also been shortlisted for three Investment Marketing and Innovation Awards, including ‘Best Use of Market Research’, ‘Campaign Innovation’, and ‘Marketing Campaign of the Year’.

We’re also proud to announce that we won ‘Best Personal Pension’ at this year’s Good Money Guide Awards, based on feedback and reviews from our wonderful customers. Thank you for helping us win!

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 let us know over on social media, and we’ll feed it back to the team.

‍

June was another busy month at PensionBee HQ as we focussed our efforts on making some important product improvements so it’s even easier for you to save for a happy retirement. Read on to find out what else we were up to last month.

We enhanced how we communicate via the app

In June, we introduced Push notifications as an additional way to communicate with customers via our app. If you’ve enabled Push notifications on your mobile, we’re able to keep you updated about the changes you’ve requested on your account, such as a plan switch. In future we’ll use this technology to notify you if we need you to complete an action, for example providing more information to progress a pension transfer. You can enable Push notifications via your mobile’s settings menu, under ‘notifications’.

Our next big project is improving the way we process pension withdrawals, making it simpler for customers aged 55 and over to access their savings. At the moment we charge an Emergency Tax Rate on all withdrawals, which means you need to claim back any overpaid tax from HMRC. We’re working on ways to reduce the amount of Emergency Tax you pay so you can access your money hassle-free and better plan your withdrawals.

As always, we’d love to hear your thoughts on the future product improvements you’d like to see. You can get in touch with the team by emailing feedback@pensionbee.com or sending us a message via Twitter.

Feels so good to take control of your retirement savings

Last month, we launched our new ‘Feels so good’ campaign, featuring six of our lovely customers: Emma (pictured), Ravinder, Amanda, James, Amina and Andrew. The campaign is designed to show that feeling of complete peace of mind and pension confidence savers have after taking control of their pensions. Keep an eye out for our new ads at bus shelters and rail stations across the UK, as well as on the radio.

PensionBee joined the Social Mobility Pledge

In June, we signed the Social Mobility Pledge, a business campaign aimed to increase career opportunities for people that have experienced disadvantages. The three-point pledge includes commitments to work with schools, offer work experience, and to use inclusive recruitment practices.

As part of the initiative, PensionBee is developing its own work experience programme, in addition to extending its partnership with several London schools, to provide careers support and financial literacy education. It hopes to address the lack of diversity in the pensions and wider financial services industry by increasing familiarity around this sector, particularly among students who may not be considering this career route.

PensionBee advocates challenging the perceptions of what people in pensions should be, breaking down some of the barriers people face. That’s why applicants wishing to join entry-level roles need no set experience, with these roles specifically advertised on sites aimed at those starting their careers without attending university. PensionBee provides all of the learning tools required and heavily invests in training so that all team members start with the same understanding of the industry.

We’re finalists at the Diversity in Finance Awards

Following a win in 2020, we’re thrilled that we’ve been shortlisted in two categories at this year’s FT Adviser Diversity in Finance Awards: ‘Employer of the Year’ and ‘Trailblazing Company of the Year’. We’re proud of our team’s diversity, with ^_higher_rate of our employees self-identifying their racial or ethnic background as Asian / Asian British; Black, African, Caribbean, or Black British; Mixed, multiple or other ethnic groups. This is on a par with the ^_higher_rate representation found in London, where we’re based.

Last month also saw PensionBee CEO, Romi Savova, named in the 2021 LGBT Great ‘Global Top 100 Executive Allies’ for demonstrating support to others.

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.

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.

‍

Last month, we worked on further improvements to our app and we were delighted to announce that we now administer £2 billion of pension savings on behalf of you, our customers. Here’s what we got up to in July.

We improved our two-factor authentication

Last month, we introduced a ‘Trust this browser’ feature for two-factor authentication. If you’ve opted into two-factor authentication, you can now choose to skip authentication for 30 days when logging in to our website from your own device. If you’re sure no one else has access to your device, you can activate this by ticking a checkbox the next time you log in. You can enable it by heading to the ‘Account’ tab once logged in to the BeeHive.

How did your pension perform in Q2?

With two-thirds of adults double-jabbed and the economy now fully reopened, UK stock markets are approaching pre-pandemic levels. And in the US, stock markets continue to reach new highs. During the first half of 2021, the UK and US markets grew 11% and ^_ni_rate, respectively (much better than the same period in 2020, when they were down -17% and -3%, respectively).

Against this backdrop, PensionBee plans have performed well. Plans designed for savers under 50 have all benefited from economic recovery and have grown between 7% and 12% over the last six months. Most plans for those aged 50 and over have also recorded growth and continue to preserve savings for those who are close to retirement.

For more details about how your plan performed relative to wider market activity, read our full Q2 report.

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.

We won Pension Provider of the Year

We were excited to announce that PensionBee was named ‘Pension Provider of the Year’ at the 2021 PensionsAge Awards! We were also shortlisted for seven MoneyAge Awards, including ‘Consumer Champion of the Year’ and ‘Pension Provider of the Year’, and we were shortlisted for two Business Green Awards 2021: ‘Marketing Campaign of the Year’ and ‘ESG Investor of the Year’.

We want to hear from you

We want to learn about your experiences of the pensions industry so we can amplify them in the UK press and campaign for change. We’re particularly interested in hearing from customers who either have, or are considering, helping their grandchildren financially. Get in touch by emailing engagement@pensionbee.com if you’d like to share your story with us, receive between £75 and £250 for your time, and would be happy for your name and photograph to be printed in a national newspaper.

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.

‍

We might be nearing the end of summer, but the future remains bright for those who take an interest in their pension. Read on to find out what PensionBee was up to in August.

We worked on making your pension experience even easier

Last month, we implemented a feature that allows you to upload the documentation that we sometimes need from your existing pension providers to enable a transfer. This further simplifies our pension transfer process so you can spend less time with paperwork and more time building your pension pot. You’ll find this new feature by heading to the ‘Transfers’ tab once logged in to the BeeHive via our website. The update is coming soon to our mobile app.

We’ve also been working on building a new way for you to contribute to your pension. It leverages industry-leading Open Banking technology that’ll enable you to make Easy Bank Transfers into your pension so it’s even simpler to save for a happy retirement. Stay tuned for further details next month.

We received our 5,000th Trustpilot review

Last month, we received our 5,000th review on Trustpilot, where we have an overall Excellent rating of 4.7 out of 5. Customer feedback helps us continue to improve and we love hearing about our customers’ thoughts and experiences. Thank you to all of our customers who take the time to leave a review on Trustpilot or who get in touch on social media!

We were shortlisted for several awards

We’re excited to announce that we’ve been shortlisted in several of the pensions industry’s most prestigious awards. We’ve been shortlisted for ‘Pension Provider of the Year’ and ‘Diversity and Inclusion Excellence’ at the Workplace Savings & Benefits Awards, ‘Industry Game Changer’ and ‘ESG Champion of the Year’ at the Growth Investor Awards 2021, and four awards including ‘Pensions Technology Provider of the Year’ at the European Pensions Awards. Huge congratulations to all of this year’s finalists!

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.

‍

The regular rhythm of life seemed to return for many of us during September, as record numbers of people indicated they’re considering changing jobs and wages grew at their fastest rate for over 20 years. If you’re in the process of changing jobs at the moment, don’t forget to bring your old workplace pension with you! And if you’re going self-employed, good luck and remember to set up a regular pension contribution so you continue to save for retirement. Simply log in to your BeeHive to get started.

Over-55s can now make withdrawals using their personalised tax code in some circumstances

We’ve rolled out a feature that allows over-55s to make withdrawals using their personalised tax code, rather than their emergency tax code, in some circumstances. When you begin to take your pension, you’re allowed to withdraw ^{_corporation_tax} of your pension tax-free. Income tax is due on the remaining 75% and you’ll be charged at your marginal rate.

However, if you’re making a withdrawal over the initial tax-free amount for the first time, your pension provider is likely to place you on an emergency tax code. Pension providers are required to do this if they don’t have an up-to-date tax code which takes into account your total earnings for the year. This can sometimes be avoided by asking HMRC to send your provider an up-to-date tax code. Emergency tax can be claimed back from HMRC.

For more information head to the ‘about withdrawals’ section on our FAQ page.

We’re now showing our Tailored Plan customers more information about their investments

Customers invested in our Tailored Plan - which automatically adjusts the mix of assets it invests in over time - can now access more information about those investments. Tailored Plan customers can head to the ‘Account’ tab in their BeeHive, and select ‘My Plan’ (if using the website) or ‘Plan information’ (if using the mobile app) to learn more.

We were named ‘Employer of the Year’ at the Diversity in Finance Awards

September was another month of celebration as we were named ‘Employer of the Year’ for the second year in a row at FTAdviser’s Diversity in Finance Awards. We were also highly commended in the ‘Trailblazing Company of the Year’ category for our workplace diversity initiatives and inclusive advertising campaigns. We’re also pleased to announce that we won the award for ‘DC Innovation of the Year’ at the UK Pensions Awards in recognition of the services and product offerings we launched in the past 12 months, including the Fossil Fuel Free Plan.

We’ve also been shortlisted for several Computing Technology Product Awards 2021, including ‘Technology Innovator of the Year’, and ‘Technology Hero of the Year’ for our CTO Jonathan Lister Parsons!

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.

‍

At the end of October, world leaders gathered in Glasgow for COP26 to tackle climate change. But while we’ll have to wait and see if their words translate into action (to paraphrase Her Majesty), thousands of PensionBee customers have already aligned their financial goals with the planet by investing in our Fossil Fuel Free Plan.

Here at PensionBee, last month saw some important changes to our plan range and a performance update for Q3. We’re also currently running a competition to win VIP tickets to see the Brentford Bees face Watford FC in December. So read on to find out more!

How did your pension perform in Q3?

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

Between July and September 2021, UK and US stock markets grew 13% and 16% respectively. That’s much better than the same period last year when the UK stock markets were down by ^_basic_rate and US stock markets were up 6%.

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

For more details about how your plan performed between July and September, relative to wider market activity, read our full Q3 report.

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.

We announced our intention to simplify our product range

Last month, we announced that we’ll be closing the Match and Future World plans, in order to simplify our product range. Savers in the Match Plan will transition to our Tailored Plan, also managed by BlackRock. And savers in the Future World Plan will transition to our Fossil Fuel Free Plan, also managed by Legal & General. Plan switches will happen automatically by 31st December 2021 and you don’t need to take any action, unless you’d like to opt for a different plan, which you can do from your BeeHive.

Enter for your chance to win VIP tickets to see Brentford FC play Watford

As official sponsors of the mighty Brentford Bees (AKA Brentford FC), we’re offering two Premier League lounge tickets to see them kick off at home against Watford on Fri 10th December. For a chance to win, simply tell us how PensionBee made you more pension confident. See Twitter for details. Best of luck!

We won at the MoneyAge Awards 2021

We’re delighted to announce that we added several new awards to our collection last month, including Money Age’s Consumer Champion of the Year (Company) and SIPP Provider of the Year and Finder’s Pensions Innovation award.

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.

‍

We might be approaching the end of the year, but things haven’t slowed down at PensionBee HQ! Last month, we were particularly pleased to launch The Pension Confident Podcast to help you get the most out of your pension. And we were also busy helping lots of you switch to our Fossil Fuel Free Plan, following a spike of interest in helping the planet transition to a low carbon economy after COP26. Read on to find out what else we were up to in November.

We launched The Pension Confident Podcast

Last month, we were excited to launch the first episode of The Pension Confident Podcast, a brand new podcast from PensionBee and Peter Komolafe that aims to help you get the best out of your pension. In the first episode, Peter chats with Clare Reilly about making a positive impact with your pension and Money To The Masses’s Damien Fahy discusses building a £30,000 annual retirement from just £55 a month!

Subscribe to the podcast and download our first episode on Apple Podcasts or your favourite podcast app, and tell us your thoughts on social media or by leaving a review!

We passed several review milestones

You helped us pass a few milestones in November - 6,000 Trustpilot reviews (4.7/5 rating), 3,000 App Store reviews (4.8/5), and 2,000 Google Play reviews (4.6/5). We are, of course, thrilled! If you haven’t rated your PensionBee experience yet, please do. We’d love to hear your thoughts so that we can help more people become pension confident.

We won at the Financial Times & Investors Chronicle Celebration of Investment Awards

Last month, PensionBee won the Financial Times & Investors Chronicle Celebration of Investment Award in the ‘Focus on ESG: Innovation’ category. Congratulations to all of the other winners!

We were also awarded the Plain English Campaign’s Crystal Mark and App Mark of approval - the only internationally recognised marks that approve the clarity and accessibility of a website and mobile app, respectively.

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.

‍

As economists reflect on the ups and downs of 2021, at PensionBee we’re looking ahead at 2022 with anticipation. And we’re starting with our new year’s goal of giving back to our customers. We’ve released a new episode of The Pension Confident Podcast, hosted by Peter Komolafe, and we’re helping thousands of customers align their financial goals with the planet by switching to our Fossil Fuel Free Plan.

Read on to learn how else we’ve been kicking off the new year.

We released the second episode of The Pension Confident Podcast

Are you self-employed, or toying with making the switch? In the second episode of The Pension Confident Podcast, we explore the things you need to know when it comes to your self-employed pension, with Emma Jones CBE, founder of Enterprise Nation and our Head of Product, Martin Parzonka.

In this episode, you’ll hear us chat about Auto-Enrolment for small businesses, and what you need to consider when it comes to keeping your self-employed pension topped up and your retirement savings on track. Subscribe to the podcast and download our latest episode on Apple Podcasts or your favourite podcast app. You can share your thoughts on social media or by leaving a review!

Sign up to become a HoneyMaker

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.

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.

‍

Not many people expected the year to get off to such a rocky start. Interest rates are up, stock markets are down, the cost of living is up - it’s no party for most of us. But while it’s natural to feel uneasy during times of uncertainty, you can at least rest assured that your pension is designed to weather such economic storms.

Read on to find out what we were up to in February.

You can now make withdrawals using the PensionBee app

It’s been a busy start to the year at PensionBee HQ! Last month, we worked hard to release a new feature that allows you to withdraw from your pension using the PensionBee app, once you reach retirement. Previously, you could only make pension withdrawals from our website.

If you’re a PensionBee customer who’s aged 55+ (57 from 2028) and have a live balance in your PensionBee account, you’ll be able to find the withdrawal feature on your mobile app under the ‘Funds’ section, where it’s titled ‘Withdraw from your pension’. You may have to update your app to see this new functionality.

We’re excited to continue improving our app and our processes so that withdrawing from your pension is as simple as possible. You can learn more about this new feature and our withdrawals process on our blog. Please send any feedback or suggestions that you may have by dropping us an email at feedback@pensionbee.com.

You can now enrol in PensionBee’s Pension Academy, with Patricia Bright

We’re excited to announce that our new Pension Academy video series hosted by Patricia Bright, lifestyle and finance influencer, is now live. A passionate advocate of financial empowerment, Patricia’s a pro at explaining complex information in a way that everyone can understand. And as an existing PensionBee customer, she gets it!

This series has been designed to empower you with the knowledge you need to take control of your pension. Each video is clear and simple (and just a few minutes long) to take you from A to Z and help you become pension confident. You can watch the series on our website, or you can sign up to receive a daily video straight to your inbox.

You can now listen to our latest episode of The Pension Confident Podcast

Our research tells us that women face real obstacles when it comes to creating a comfortable retirement. In fact, the average disparity between men and women’s pensions is 38% and has grown to almost 6^{_personal_allowance_rate} in some parts of the UK. On the latest episode of The Pension Confident Podcast, PensionBee CEO Romi Savova joins Sam Brodbeck, Personal Finance Editor at The Telegraph, and Emilie Bellet, founder of the financial education company Vestpod, to discuss how we got here and what we can do about this issue.

Subscribe to the podcast and download our latest episode on Apple Podcasts, Spotify or your favourite podcast app. You can share your thoughts on social media or by leaving a review!

We won five Boring Money Best Buys Awards 2022

Last month, we won five Boring Money Best Buys Awards 2022, including the ‘Best Buy Pensions’ and ‘Best for Customer Service’ awards! These awards are based on real customer reviews as well as customer service, so a big thank you to our wonderful customers and the honest feedback you provide on Trustpilot. And huge congratulations to our lovely BeeKeepers!

We were also shortlisted for ‘Digital PR Campaign of the Year - Finance’ at the UK Digital PR Awards 2022. Well done to all the other finalists!

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.

‍

After a rocky start to the year, stock markets stabilised and even grew in some regions during March. So it’s likely that your pension experienced some growth last month as a result. Read on to learn more about market performance in March as well as what else we’ve been up to.

How did financial markets perform in March?

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

Then there’s inflation - or the rising cost of goods and services - which was increasing even before the invasion in Ukraine. In effect, it means that the cost of doing business goes up and the money people have to spend on non-essentials goes down. Stock markets don’t like this, because it means that many businesses are likely to make less money. The world is also still dealing with the effects of the pandemic. And some countries aren’t necessarily over the worst of it. The Chinese government put its largest city, Shanghai, on lockdown in March, causing economic disruption to millions of people and factories.

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

You can read our full pensions performance update on our blog.

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.

You can now listen to Episode 4 of The Pension Confident Podcast

Data from the Office for National Statistics suggests that one in four people think of their property as a way of funding their retirement, and it’s easy to see why; the property market has seen huge growth over the decades, far outstripping inflation. But does investing in property at the expense of your pension really make more sense financially?

In Episode 4 of The Pension Confident Podcast, Abba Newbery, Chief Marketing Officer at online mortgage broker, Habito, joins Ken Okoroafor, founder of the Financial Joy Academy and The Humble Penny, and Rachael Oku, VP Brand and Communications at PensionBee to discuss this.

Subscribe to the podcast and download our latest episode on Spotify, Apple Podcasts or your favourite podcast app. You can find a transcript of this episode on our blog and don’t forget to share your thoughts on social media or by leaving a review!

We won at the FStech Awards

We’re pleased to announce that we won the ‘Financial Inclusion’ Award at the FStech Awards 2022. A big congratulations to everyone who was shortlisted!

We were also shortlisted for ‘Pensions Tech of the Year’, ‘Fintech of the Year’, ‘Best Employer Award’, and ‘Diversity & Inclusion Award’ at the UK Fintech Awards 2022, and for ‘DC Provider of the Year’ and ‘DC Innovation of the Year’ at the UK Pensions Awards 2022.

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.

‍

This month began with interest rates rising to 1% in the UK, the highest level in 13 years. The Office for Budget Responsibility anticipates that inflation will decrease during 2023. While it doesn’t stop us feeling the pinch right now, it also doesn’t stop us from planning for the future - including your pension savings.

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 April?

April experienced some extreme market volatility as both the UK and US stock markets fell last month. An ongoing large scale problem currently facing global economies and stock markets are supply chain issues, caused by various geopolitical factors.

In retaliation to sanctions, Russia has threatened to stop supplying gas to Europe, which has further increased fuel prices. Together, Russia and Ukraine are global suppliers of ^{_corporation_tax} of wheat, 3^{_personal_allowance_rate} of barley, and 6^{_personal_allowance_rate} of sunflower oil. Between sanctions impacting trade and the war affecting agricultural production, across Europe, people have felt the impact of high levels of inflation.

Then there’s China’s latest shutdown as a result of rising coronavirus cases. China accounts for nearly 3^{_personal_allowance_rate} of all global manufacturing - producing everything from iPhones to Tesla cars. The cost of production and therefore products has risen. With income levels remaining the same, but everyday costs rising, essentials have become less affordable leading to a cost of living crisis. Less spending affects company profits, meaning investments dip in value. All pensions across the UK are likely to have experienced the impact of this macroeconomic uncertainty.

Fortunately, there’s a precedent of recovery following market falls and pensions are long-term investments. If the global economy grows over time (which historically it has), then your pension should also recover over time.

You can read our full update on our blog.

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.

You can now listen to Episode Five of The Pension Confident Podcast

Our latest episode of the Pension Confident Podcast discusses the current cost of living crisis. We were joined this month by Lynn Beattie, personal finance expert and author known as Mrs Mummypenny, Scott Mowbray, Co-Founder and Chief Communications Officer at Snoop, and Clare Reilly, Chief Engagement Officer at PensionBee.

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

We won at the UK Fintech Awards 2022

We’re delighted to have recently won three UK Fintech Awards for ‘Diversity and Inclusion’, ‘Fintech of the Year’, and ‘Pensions Tech of the Year’. Congratulations to all the other winners!

We’re also pleased to announce that we’ve been shortlisted for three European Pensions Awards 2022, in the the ‘Diversity Award’, ‘European Pensions Innovation Award’, and ‘Pensions Technology Provider of the Year’ categories.

We’ve also been shortlisted for ‘Employer of the Year’ and ‘Trailblazing Company of the Year’ at the FTAdviser Diversity in Finance Awards 2022!

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.

‍

The thought of losing your pension when circumstances are out of your control can be scary. However, the government has a number of procedures and regulations in place to ensure that, in the worst case scenario, your pension is protected. Read on to find out what your options are, and how much of your retirement savings you could get back, depending on the type of pension you have.

What happens if the company I work for goes bust?

This will vary depending on the type of pension you were enrolled in; a defined contribution or defined benefit pension.

A defined contribution pension is the most common type of pension, where your retirement income is dependent on how much money you contribute to it, and the performance of those investments. Most modern workplace and personal pensions are defined contribution pensions.

A defined benefit pension (also known as a “final salary” pension) is a type of workplace pension that pays you an income based on your salary and the number of years you work for that employer.

So, what if I have a defined contribution pension...?

Defined contribution pensions are managed by a pension provider (not your employer), so your pension should be fine if your employer goes bust. You will, however, lose out on any future contributions that your employer would have made. In this situation, you should contact your pension provider directly to see what your options are.

So, what if I have a defined benefit pension...?

With a defined benefit pension, it’s your employer’s responsibility to make sure there’s enough money in the scheme to pay your pension when you reach retirement. If a company you work for experiences financial trouble, your money will usually remain untouched, as a company’s workplace pension scheme is usually kept separate to the rest of its assets. If your employer doesn’t have the funds to pay your pension, you should have protection from the Pension Protection Fund (PPF), which was set up by the government for exactly this reason.

The PPF will compensate you for 10^{_personal_allowance_rate} of your pension if you’ve already reached the scheme’s retirement age at the time your employer goes bust. If you haven’t yet reached the scheme’s retirement age, you’ll only be entitled to 9^{_personal_allowance_rate} compensation, to a set limit. For 2019/20 the limit is £40,020 for a 65-year-old. The compensation cap is reviewed annually from 1 April, to ensure it aligns with the increase in average earnings in the UK in the last tax year.

You may also be able to claim separate compensation from the Fraud Compensation Fund (which is part of the PPF), if there are signs of negligence in your employer’s management of the pension.
‍

{{main-cta}}
‍

What happens if my pension provider or money manager goes bust?

If your pension provider goes bust, the compensation you’re entitled to will be determined by the type of pension you have, and whether your provider’s regulated by the Financial Conduct Authority (FCA).

For a defined contribution pension, it will depend on where your pension’s saved. If your pension qualifies as a ‘contract of long-term insurance’ it will benefit from the 10^{_personal_allowance_rate} coverage offeredcovered by the Financial Services Compensation Scheme (FSCS) for accepted claims against the money manager. You’ll also be eligible for the same level of cover for annuities purchased from pension providers regulated by the FCA.

If your SIPP provider goes bust, you’ll only be eligible for compensation up to £85,000 for claims against them. For other pensions, it will vary depending on the underlying investment. You can see the full list of the protection you’re entitled to from the FSCS here, and if you have any questions about your pension you should contact your provider.

All PensionBee pensions are structured as long-term insurance contracts and therefore benefit from 10^{_personal_allowance_rate} protection should the money manager become insolvent. This means that if something happens to one of our money managers, who are BlackRock, State Street Global Advisors, Legal & General and HSBC, your pension will be protected by the FSCS up to 10^{_personal_allowance_rate}. We’ll also pursue any compensation on behalf of our customers. For more information on the applicable FSCS protection, read our dedicated Pensions Explained Centre article on the topic.

What happens if I don’t know who my pension provider is?

If you don’t remember who your pension provider is, don’t worry, we hear this all the time. Figures vary, but the general estimate is that there are over 1.6 million “lost” pension pots, worth over £19 billion. This is equivalent to £13,000 per pot!

Figures vary, but the general estimate is that there is over 1.6 million “lost” pension pots

The government has a free pension tracing service, which is designed to help you look up any old pensions you have some record of. While this won’t reclaim your money for you, or give you specific information about your policy, it can help guide you in the right direction so you know who to contact.

The more information you can provide about your employer or pension provider the better. Some of the information that can be beneficial is:

• Any current or previous employer names
• A current or previous address for your employer
• The dates that you were employed
• Any old payslips you may have

Although the process of reclaiming money may be a slow one and require some admin work, it’s possible to get your retirement savings back on track should your employer or pension provider go bust.

‍

This article was last updated on 01/10/2024

A recent report found that over half (57%) of people lack confidence in their retirement planning. It also found that confidence decreases as people get older. 44% of 18-39 reported being confident in their retirement planning falling to just 31% for those over 45.

While we’re doing our best to explain things at PensionBee, we appreciate there’s a lot of ambiguity that still exists. So, with that in mind, we’re addressing some of the most common pension myths that we’ve come across.

Read on to get the realities and put those popular pension myths to bed.

Myth 1: Transferring pensions into one plan is unsafe

At PensionBee we’re often asked if it’s safe for savers to ‘put all of their eggs in one basket’, and while consolidating your pensions will bring them into just one plan, it’s likely your money will be invested in a professionally managed portfolio - in a combination of shares, property, bonds and cash. As a result of this diversification, your portfolio should be able to counterbalance any dips in one particular investment in the fund.

In effect then, your money will be invested in a variety of baskets.

Elsewhere, some providers still charge unreasonable fees. These could be transactional fees when you contribute and drawdown, or charges designed to penalise you for having a frozen pension. Transferring your pensions into one pot with lower or less fees, can instantly save you money and allow you to easily manage your pension - with peace of mind too.

Myth 2: Pension transfer charges will eat into my pension

It’s a common misconception that moving your pension will come with high charges. Whilst every pension is likely to come with some sort of management fee, high exit fees and penalties are nowhere near as common as they used to be. This is thanks to changes in pension legislation.

High exit fees and penalties are nowhere near as common as they used to be.

And even if your old provider does charge an exit fee to transfer away from them, it can still be beneficial to move your pension. After all, they only need to be paid once and the money you spend could potentially be recouped on lower fees and a better rate of return. When you transfer to PensionBee, we always check for exit fees and whether you stand to lose any guaranteed benefits with your current provider. If we do find an exit fee over £10, we’ll tell you and ask whether you still want to go ahead with the transfer.

Please be aware that we’re reliant on clear information from pension providers, so we won’t always be able to tell whether such features exist though. We also don’t check certain policies which are considered very low-risk, including where you ask us to waive our usual checking processes too.

Myth 3: I need a financial adviser to transfer my pension

Unless you have a final salary or defined benefit pension with safe-guarded benefits worth more than £30,000, there is no obligation to seek financial advice before you transfer a pension.

All in all the process should be relatively straightforward, and if you’ve read up on the process online and are aware of the benefits and considerations, it’s unlikely you’ll need independent advice.

Myth 4: The State Pension alone will be enough to support you

Even if you receive the maximum State Pension, you’ll only receive an annual income of just over £11,502.40, or £221.20 per week (2024/25).

Although your day-to-day costs are likely to be lower in your retirement, it’s unlikely that this amount of money will be enough to support you on its own. In addition, you’ll only be able to start claiming your State Pension when you turn 65 (with this set to increase to ^{_pension_age_from_2028} by 2028) so if you plan to retire before this age you’ll need to have even more provisions in place to support you.

Myth 5: A pension is unaffordable

Making a few minor changes to your day-to-day life can help to really boost your pension savings. Consider cutting back on certain spending habits - expensive dinners, luscious lunches, your coffee addiction - and you will start to really notice a difference in your pension savings. Putting into a pension shouldn’t leave you penniless and you need to make sure you’re enjoying a few luxuries during your working life, but be willing to make some sacrifices and you might be surprised at what you can afford.

For instance, if you can save an extra £100 into your pension per month from the age of 30, this will mean an additional £36,000 in your pension by the time you reach 60. Add the additional £9,000 you would receive in tax relief and your employer’s contributions, and suddenly building a decent pension pot doesn’t seem so unachievable, does it?

Myth 6: Property is a better bet than a pension

There’s no doubt that bricks and mortar is a good investment. Property is a tangible asset that tends to appreciate over time, but when you’re investing in property to fund your retirement there are some important things to bear in mind.

Property investments leave you liable to a number of taxes. There’s inheritance tax, capital gains tax and income tax to consider, which, when combined, can have a significant impact on your returns. In contrast, money invested into a pension attracts tax relief, and any gains made won’t be taxed. Plus, you can take up to ^{_corporation_tax} of your pension tax-free when you reach 55 (rising to 57 in 2028).

Property investments leave you liable to a number of taxes.

Another factor to consider is the diversification of your pension savings. Most pension plans will be diversified, so the money you put into your pension will be spread across a range of assets (like equity, cash and bonds), but also across regions. So any drop in value in one of these carries less risk in comparison to a drop in property values, which could have a significant impact on your property investments.

Learn about property and your pension in our video series.

Myth 7: Pensions are a scam and they’ll never pay out

Scams in any shape or form are always a concern and something to be vigilant about. However, pensions are tightly regulated, and the Financial Conduct Authority (FCA) is doing it’s best to weed out scams, so while it’s wise to be cautious, don’t panic.

Scammers can be very clever with their wording, and if there is ever anything you’re not sure about, you should always contact your provider directly for confirmation from them. You can also contact the FCA about anything suspicious, either by calling their helpline or reporting a scam via the FCA website.

Here are a few scam warning signs to look out for:

• being contacted about accessing your pension early;
• being asked to provide details about your pension over the phone; and
• being asked to transfer your pension to a new scheme.

If something along these lines sounds too good to be true... it probably is!

Myth 8: You can’t join your company pension until you’re 22

Due to the ‘Auto-Enrolment’ initiative your employer will have to contribute to your workplace pension, as long as you’re classed as a UK worker, older than 22 and have a minimum salary of ^{_money_purchase_annual_allowance}.

If you’re 21 or under and earn ^{_lower_earnings} or more in a tax year, you have the right to opt into your workplace pension scheme. If you choose to opt in, you’ll be entitled to the minimum level of employer contributions. If you earn less than ^{_lower_earnings} you can still ask your employer to give you access to a pension to save into. They have to do this, they just don’t have to make any employer contributions.

You can choose to ‘opt in’ to your workplace pension scheme from the age of 18

Starting contributions to your pension earlier will make a considerable difference to your retirement, without impacting on your current lifestyle too much. Your contributions will benefit from something known as ‘compound interest‘, which is the reinvestment of the interest earnt on your contributions.

The earlier you can start your contributions, the greater the returns will be.

Myth 9: You can be too old to start a pension

It’s never too late to open a pension or start contributing to it. The earlier in your career you start your contributions, the longer your investments will have to grow. However, anything you can afford to put towards your retirement at any age is better than nothing at all, and can go a long way to securing yourself a more comfortable retirement.

Worryingly, the highest proportion of people ‘opting out’ of their pension scheme is found amongst people above the age of 50. Not saving into a pension means you’re losing out on ‘free money’ from the government in the form of tax-relief, and also means you’re not increasing the ^{_corporation_tax} you can take tax-free when you reach 55!

To work out how much you should be saving into your pension, you can use our calculator.
‍

{{main-cta}}
‍

Myth 10: If an employer goes bust I’ll lose my pension

The government has a number of procedures and regulations in place aimed at protecting your pension should your employer go bust. If you were enrolled into a defined contribution scheme, your pension will be managed by a pension provider, not your employer. So, should your employer go into administration, your money should be fine. You will however lose out on any future contributions that were due to be made. It’s worth contacting your pension provider directly to discuss your options moving forward.

If you have a defined benefit pension, it’s likely your pension will still be safe if your employer was to go bust. This is because companies running these schemes are required to keep employees’ pensions separate to the rest of their assets. However, if your employer can’t pay the value of your pension, you will still have protection from the Pension Protection Fund (PPF). You will be compensated for 10^{_personal_allowance_rate} of your pension, or 9^{_personal_allowance_rate} if you have reached the scheme’s retirement age.

You can find out more about your options if your employer was to go bust.

Myth 11: Paying extra contributions is the only way to save more

Your pension at retirement is largely dependent on how much you have contributed to it through your working life. So the main way to give yourself a more comfortable retirement is to save more into it. However, sometimes this isn’t possible given your circumstances.

Find a pension plan that has a good balance of risk, reward and charge.

Whatever the size of your pension pot, the performance of the fund and the fees you pay will have a significant impact on your pension upon retirement. It is important that you find a pension plan that has a good balance of risk, reward and charges. You may choose a higher risk plan earlier in your pension journey, and then as you get closer to retirement, switch to a lower risk option to steady the value of your pension pot.

Providers will supply information which indicates where your pension will be invested. Plans will also usually have factsheets, which allow you to find out more about the past performance of the funds, too. But it’s important to remember that past performance isn’t an indicator of future performance, and as with any investment, you may get less back than you started with.

Find more information on the PensionBee plans.

Myth 12: A pension is lost if you die before taking it

Typically pensions sit outside of your estate. This means that your beneficiaries can access your pension, without having to pay inheritance tax on it - although the rules will vary depending on the type of pension and age you pass away. Here’s how.

Defined contribution

If you have a defined contribution pension and die before your 75th birthday, there will be a few options. If you haven’t started drawing down from your pension, it can be passed onto your beneficiaries tax-free - as long as it’s claimed within two years - otherwise there will be some tax charges.

If you pass away before your 75th birthday but have started drawing down from the pension, the options will vary depending on how you accessed your pension. If you’ve withdrawn the full amount and have the cash in your bank account rather than your pension, this will be counted as part of your estate. If you still have funds in your pension though, your beneficiaries will be able to access them entirely tax-free.

Should you pass away after your 75th birthday, your beneficiaries will be liable to pay income tax on the pensions you have left behind. This will be charged at their marginal rate of tax, but if taken as a lump sum, it is worth remembering that this could impact which tax bracket they are classed in.

With annuities, it’s slightly more complicated. If you have already started receiving the income from this, usually your beneficiaries won’t be able to access it. However, there are certain types of annuities that will be eligible for pension transfer, you can find out about these here.

Defined benefit

As defined benefit pensions are linked to your salary and the years you have worked for that employer, the pension rules after death are slightly different. The main factor with a defined benefit pension and your beneficiaries, is whether you retired before you died.

If you die before retiring, the pension may pay out a lump sum worth two-four times your salary. Again, if you’re younger than 75 when you die, this will be completely tax-free for your beneficiaries.

If you have already retired when you pass away though, your spouse, partner or dependent may receive a reduced regular payment. The rules from the provider will be stricter on who will be eligible to receive your death benefits.

Myth 13: Buying an annuity is the only option at retirement

Upon reaching retirement, some people prefer to have a guaranteed income, whilst others would rather be in control of how and when they access their savings. For those wanting a guaranteed income, you can convert your pension savings into an annuity. This will pay out a regular, guaranteed income for a set period of time, or until death.

However, purchasing an annuity isn’t compulsory. Drawing down from your pension keeps your pension invested, and then gives you the flexibility to access your pension as and when required. Whilst both have their pros and cons, everyone will have their own preferences and it’s important to consider your options.

Myth 14: Knowing how much to contribute is too difficult

It’s important to strike a balance when contributing to your retirement. You want to make sure you’re planning ahead and thinking of your future self, but you still need to allow yourself some luxuries and not stretch your finances too much.

You should try to contribute ^_ni_rate of your salary into your pension

Many people are unsure how much to save for retirement. The uncertainty when it comes to contributing isn’t that people don’t want to save, but more that they don’t know how much they should be putting away. Fortunately, there are helpful guidelines to help you work out how much you may need.

One common suggestion is to try to contribute ^_ni_rate of your salary to your pension. Although this can sound like quite a lot, when you include your employers contributions, this amount can seem more realistic. This of course isn’t always possible, but factor in one-off payments too, and you can really make a big difference to your pension.

To help plan for your retirement and easily work out how much you should be contributing, you can use our free pension calculator.

Myth 15: Higher rate tax relief is given automatically

Putting money into a pension is a very tax-efficient way of saving. Most UK taxpayers get tax relief on their personal pension contributions, which means that the government effectively adds money to your pension pot. Basic rate taxpayers usually get a ^{_corporation_tax} tax top up; HMRC adds £25 for every £100 you pay into your pension.

If you’re a higher rate or an additional rate taxpayer, then you can claim an additional ^{_corporation_tax} and 31% tax top up via your Self-Assessment respectively. You will only be able to claim this tax-relief from the last four years though, so if you haven’t claimed this additional tax relief before, you will still have an opportunity to receive it. Our previous research has found the UK’s highest earners have left more than £1.3 billion between 2016/17 and 2020/21.

Myth 16: You have to keep your pension where it is when you change job or retire

With the average worker nowadays having 11 different jobs throughout their career, you can end up with a lot of pensions to keep track of. Every time you change jobs, it’s likely that you will be enrolled into a new workplace pension scheme, and when you leave that job, that pension pot is likely to stay there too. This will mean you could end up with a lot of frozen pensions, that can be easily managed by consolidating them into one pension pot.

Having your pensions transferred to one provider can make them a lot easier to manage. Choosing to combine your pensions with PensionBee means you’ll be able to manage all of your money through an online dashboard in just a few clicks. Once signed up, you will then be assigned your very own BeeKeeper who’ll be on hand to support you with any questions or concerns you may have, and keep you up to date throughout your journey with PensionBee.

These are some of the common myths that we’ve come across, and I hope we’ve been able to put them to bed for you. To get started with PensionBee today and become pension confident, sign up here.

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.

‍