PensionBee Q&A

Former_MSE_Andrea

Hi everyone

We've given Pensionbee permission to join the Forum as a verified user to help answer questions about its business. You can see its forum account here: PensionBee.

If you have a question click "reply" below to ask and PensionBee will try to help.


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PensionBee

Hi Andrea,
Glad to be here. We're more than happy to answers any questions in this tread. We seriously need to catchup on some badges if we look at your account

Jasper, on behalf of PensionBee.

Former_MSE_Andrea

Go for it! The more questions you can help with the more badges you get

PensionBee

At PensionBee we're currently reviewing our fees and I'm collecting as much feedback as possible on what those fees should be. We currently offer an all-in-fee of 0.5% on any amount and there are two options I'm looking into:
a. lower fees above 100k
b. a fixed fee, no percentage
What would be your preference or do you have another price model in mind? We would love to hear your feedback!

Jasper
On behalf of PensionBee

cloud_dog

PensionBee wrote: »

At PensionBee we're currently reviewing our fees and I'm collecting as much feedback as possible on what those fees should be. We currently offer an all-in-fee of 0.5% on any amount and there are two options I'm looking into:
a. lower fees above 100k
b. a fixed fee, no percentage
What would be your preference or do you have another price model in mind? We would love to hear your feedback!

Jasper
On behalf of PensionBee

Generally people on these forums consider HL to be expensive with a starting AMC of 0.45%, and you are above that; plus HL do have an excellent website and are well regarded for their customer service. So, potentially they have mitigation for why they may be at the higher end of the charging scale (certainly initially).

cloud_dog

Meant to add...

Wrt point your charging scale, that's a business decision, i.e. you need to identify your market demographic and focus your charges, marketing, etc on that.

No one can answer your question per se because we are all different, and you will find financially savy people on here will actually review what site is best for them by considering:

1. Types of investments (OIECS / ITs / ETFs / Stocks)
2. Frequency on investing
3. Size of portfolio
4. Need for regular investments / dividend re-investment etc

...and they will move accordingly.

Additionally, if a provider has relative high exit fees many people would reconsider if they would actually move to the provider irrespective of the ongoing AMC / platform charge.

PensionBee

Hi Cloud_dog,
Yes, the 0.45 vs 0.5 if often compared but the 0.5 includes the fund fee, with HL is doesn't. We're currently cheaper than HL on pension pots up to £200k
The whole "what's included" often is confusing and therefore I do a full review atm.

HL has done one thing really well: their marketing. I always joke to the team here "meanwhile in Bristol...." They attract a lot of customers and keep them happy. Fees are not the only thing in the end.

cloud_dog

Ouch....Just spotted this on your FAQs

PensionBee_Website wrote:

Can I open a new pension without transferring old pensions in?

No. We want PensionBee to be the best solution for combining your old pensions into one online plan, so we do not offer new pensions for customers who do not combine their pensions with PensionBee.

If I was interest....I'm wouldn't be any longer :eek:

What is the business logic behind this restrictive practise, other than wanting to maximise your charges?

PensionBee

We will introduce new pensions and other products very soon.

Up until now, we've been solely concentrating on building the best pension consolidation product. It was the reason why our founders started PensionBee.
When you're still small you have to stick to one thing and do that really well. Now PensionBee has grown up a bit more, we have more capacity to look at other products.

Jasper
On behalf of PensionBee

Lokolo

Personally I think your fees are OK but its just a bit too simple for my liking so you wouldn't see me as a customer. I have a portfolio I have built myself and no chance of moving to one of your 4 selected funds.

I also doubt you would see high net pension individuals moving to a platform with such little options which seem to have been plucked out of midair, all from different fund managers. So a fixed fee would not be a good move imo. The smaller investors are more likely to want simple, so a % fee would suit them better.

PensionBee

Hi Lokolo,

Thanks for your feedback. This is really helpful.
On fund range, I can't reveal too much but we will have more than 4 funds soon but I understand you want you're more leaning towards a full SIPP offering.

Jasper
On behalf of PensionBee