Looking at the PensionBee share price, I see it has dropped a lot in recent times. I would otherwise have gone with them without hesitation. Should I be concerned about their share price drop?
Hi there Jez, I would say that investing through PensionBee versus investing in PensionBee are two very different things. Investing in PensionBee is in effect very small-cap (company size) investing, meaning the price of its shares are likely to be quite volatile as this is a risky endeavour. This is because smaller companies are deemed inherently more risky than the shares of larger companies as they tend to be less established and their revenues and earnings less reliable and stable. There's also a host of technical reasons in the way the shares trade too. But volatility in the share price does not need to affect the day-to-day operations of a business: it is simply how it is being constantly revalued in the public markets. Of course, if information has been given to the market that tells investors the company is in trouble, you would see very severe share price drops, but this would be public information and we haven't heard anything in this regard. In terms of using it as an investing service, the mood-music seems pretty good for PensionBee: they are growing fast, have gathered large number of investors who seem pretty happy with the service, and in terms of our own review, we really like what they're doing in Pensions. The service is slick and efficient and the investing options are well suited for retirement goals. We have a full PensionBee review on our website here: stepstoinvesting.com/products/pensionbee/
@@stepstoinvesting Hi. I meant to thank you for your detailed response to my comment, but forgot - so please accept my belated thanks. I ended up looking closely at a comparison between Pensionbee and Penfold. They turned out to be more or less the same, but PensionBee narrowly won through its lower fees.
Hi there, as PensionBee is what we call a defined contribution scheme, shifting a DB pension into theirs will cause you to lose benefits. In addition, because DB benefits are so valuable, if your DB scheme is valued over £30k, you are required by law to take regulated financial advice. Best place to learn more is the government's Money Helper site, see here: www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/transferring-your-defined-benefit-pension. Hope that helps!
Hi there, please remember that PensionBee is de facto just a dealing platform / online broker - the underlying funds that your money is invested in are managed by various, large established investment firms, whose assets are ring-fenced by custodians. For example, in the tailored plan, the large US investment firm BlackRock is supplying the underlying target date retirement funds, and its custodian is Bank of New York Mellon. PensionBee's pension schemes are also protected by the Financial Services Compensation Scheme, which protect the investors in case of an investment firm failure up to the value of £85,000 per person per scheme (this doesn't cover investment loses though). Hope that helps.
I see a lot of replies on similar channels where distrust in pension platforms is expressed. Pensions are heavily heavily regulated. Im old enough to remember the Maxwell affair, so I can see where some of the distrust comes from. Like a lot of employees up and down the country, my main workplace pension is with NEST. Once you get used to that platform, it’s easy to adjust to most others. I’ve recently opened a PensionBee account - as in May 24 they permitted you to open one without transferring. So far I’m very happy. No contribution fees is a big attraction given that NEST charge a whopping 1.8% on every contribution, including tax relief and employer contributions.
Appreciate the review👏🏽👑
Looking at the PensionBee share price, I see it has dropped a lot in recent times. I would otherwise have gone with them without hesitation. Should I be concerned about their share price drop?
Hi there Jez, I would say that investing through PensionBee versus investing in PensionBee are two very different things. Investing in PensionBee is in effect very small-cap (company size) investing, meaning the price of its shares are likely to be quite volatile as this is a risky endeavour. This is because smaller companies are deemed inherently more risky than the shares of larger companies as they tend to be less established and their revenues and earnings less reliable and stable. There's also a host of technical reasons in the way the shares trade too. But volatility in the share price does not need to affect the day-to-day operations of a business: it is simply how it is being constantly revalued in the public markets. Of course, if information has been given to the market that tells investors the company is in trouble, you would see very severe share price drops, but this would be public information and we haven't heard anything in this regard. In terms of using it as an investing service, the mood-music seems pretty good for PensionBee: they are growing fast, have gathered large number of investors who seem pretty happy with the service, and in terms of our own review, we really like what they're doing in Pensions. The service is slick and efficient and the investing options are well suited for retirement goals. We have a full PensionBee review on our website here: stepstoinvesting.com/products/pensionbee/
@@stepstoinvesting Hi. I meant to thank you for your detailed response to my comment, but forgot - so please accept my belated thanks. I ended up looking closely at a comparison between Pensionbee and Penfold. They turned out to be more or less the same, but PensionBee narrowly won through its lower fees.
So I would lose benefit of defined benefits contribution if I transfer my old pension to pensionbee? Great new video by the way..
Hi there, as PensionBee is what we call a defined contribution scheme, shifting a DB pension into theirs will cause you to lose benefits. In addition, because DB benefits are so valuable, if your DB scheme is valued over £30k, you are required by law to take regulated financial advice. Best place to learn more is the government's Money Helper site, see here: www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/transferring-your-defined-benefit-pension. Hope that helps!
I don't trust pension funds where a major stakeholder is a private person with more that 30 percent equity. That's the main reason to avoid.
Hi there, please remember that PensionBee is de facto just a dealing platform / online broker - the underlying funds that your money is invested in are managed by various, large established investment firms, whose assets are ring-fenced by custodians. For example, in the tailored plan, the large US investment firm BlackRock is supplying the underlying target date retirement funds, and its custodian is Bank of New York Mellon. PensionBee's pension schemes are also protected by the Financial Services Compensation Scheme, which protect the investors in case of an investment firm failure up to the value of £85,000 per person per scheme (this doesn't cover investment loses though). Hope that helps.
avoid middle men to reduce the cost
I see a lot of replies on similar channels where distrust in pension platforms is expressed.
Pensions are heavily heavily regulated. Im old enough to remember the Maxwell affair, so I can see where some of the distrust comes from.
Like a lot of employees up and down the country, my main workplace pension is with NEST. Once you get used to that platform, it’s easy to adjust to most others.
I’ve recently opened a PensionBee account - as in May 24 they permitted you to open one without transferring.
So far I’m very happy. No contribution fees is a big attraction given that NEST charge a whopping 1.8% on every contribution, including tax relief and employer contributions.
So we pay tax on our pension? We spend all these years working and saving for our retirement and then they tax us on it? 😅😅😅😅