Moneybox Pensions/New Feature

hoggysterling

Hey

Not sure if this is the right place, but did anyone receive an email from Moneybox regarding their pension scheme?

"We’ve got some BIG news… we’re giving you the opportunity to become a Moneybox Shareholder! 🎉

For the first time, we’re offering free Moneybox shares to our community. It's a bit like crowdfunding but instead of paying for your shares, you just need to transfer one or more of your old pensions to us by 30th November.

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Over the last few months, we’ve helped our early pension beta customers find and consolidate thousands of old pensions, worth an average of £10,000 each!

We are now excited to be rolling out our pensions beta to the wider Moneybox community - everyone with the latest version of the app can participate. You will see two new cards in your Accounts tab which will allow you to register for shares and transfer in your old pensions all from within the app. 📲".

What's everyone's thoughts? I have pension with standard life & an old one with NEST.

I might change my NEST one to Moneybox.

AnotherJoe

A total gimmick and irrelevance.

Albermarle

Offering incentives to transfer pensions is not unique to Moneybox. Some SIPP providers offer actual cash from time to time , although you usually need to transfer at least £50K .
Cash is much better than crowdfunded shares , that probably can not be sold for many years , if ever.

Anyway you should transfer pensions for other reasons rather than incentives , such as lower charges , wider access to investment funds etc .

SonOf

In general, Robo-guidance firms are losing money hand over fist. The companies are virtually worthless in terms of assets and only have value for future potential. However, a good number are expected to be go under or be swallowed up as there are too many chasing a small market. Their backers are funding them in the hope that they will be the one that gets critical mass and becomes profitable.

For the first time, we’re offering free Moneybox shares to our community. It's a bit like crowdfunding but instead of paying for your shares, you just need to transfer one or more of your old pensions to us by 30th November.

Or putting it another way, they will give you a tiny number of virtually worthless shares in return for you paying charges to them in a plan that is not that competitive. (not uncompetitive but better DIY options exist and even an IFA can be cheaper on transactional basis depending on the amount invested.)

I might change my NEST one to Moneybox.

One what basis do you think that would be justifiable?
Moneybox is more expensive.

[Deleted User]

Robo advisers may consolidate but that shouldn’t impact your pension funds any more than human advisers going bankrupt.

The theory is that robo advisers are cheaper than the human ones but also better because human emotion is bad for investing. Presumably they will increase market share at the expense of human advisers as time goes by and today youngsters who are comfortable with “robo” start using this service.

SonOf

Robo advisers may consolidate but that shouldn’t impact your pension funds any more than human advisers going bankrupt.

Robo-guidance is on their own product. So, whilst the underlying investments are ring-fenced, the financial solvency of any provider should be a consideration. The financial solvency of advisers is not a consideration in the same way as you are not investing in the adviser company.

Presumably they will increase market share at the expense of human advisers as time goes by and today youngsters who are comfortable with “robo” start using this service.

Recent media articles have indicated that robo-guidance is not creating the disturbance they hoped and growth is sluggish. The problem appears to be that a) they are not that cheap and b) when they do get client money, the values are low.

There is certainly a market for robo-guidance but its not that big at this time and its costing too much to attract what there is. It will probably end up being a later player that gets success and not the early ones. Even the CEOs of the robo-guidence firms are saying that the UK can really only have one or two viable robo-guidence firms in the end. You are already seeing players fall away.

[Deleted User]

I think the values are low because it’s young people. Pass forward 20 years... they will have more money. May take a long time, like with internet shopping,