Pension Bee Alternative

patpalloon

I have a private pension originally with L&G then 2 years ago I switched to Pension Bee. I was automatically enrolled in their 4Plus plan. No issues till recently. I turn 55 in April next year and want to take the 25% tax free sum. So I decided to switch to the low risk plan called Preserve. I lost 2k straight away - that was a month before the current shenanigans. I've lost all confidence in Pension Bee as they can't give you a straight answer and say they can't advise, just wash their hands of any responsibility. And now this plan relies heavily on Bonds which thanks to the Gvt have gone from a safe bet to risky.

So I am wondering if I just sit tight or switch to a new provider. I looked at Nutmeg and Wealthify.

biscan25

Does your currentl employer have a plan you can transfer into?

patpalloon

I'm no longer working and never had a company pension - so started my own personal pension when I was in my 20s

dunstonh

So I decided to switch to the low risk plan called Preserve. I lost 2k straight away - that was a month before the current shenanigans.

The current "shenanigans" started in October 2021 and have almost been going on a  year new.

 I've lost all confidence in Pension Bee as they can't give you a straight answer and say they can't advise, just wash their hands of any responsibility.

You will get the same response from all providers as they are not advisers.    Providers cannot give opinion or advice unless they hold advice permissions.  The majority do not and those that do, will charge you for it.   Advice is given by your adviser.   Or if you choose not to use an adviser, you take on that responsibility.

And now this plan relies heavily on Bonds which thanks to the Gvt have gone from a safe bet to risky.

Bonds have never been a safe bet.   They are a low risk option over the long term that performs within expectation 95% of time.  We have had a period over the last year that falls within the 5%.

So I am wondering if I just sit tight or switch to a new provider. I looked at Nutmeg and Wealthify.

Both of whom would have given you exactly the same outcome as pensionbee.     Your problem isn't the provider.  Your problem is your expectation of what a provider does.

patpalloon

By Shenanigans I am referring to the pensions turmoil caused by the 'mini budget'.

MX5huggy

No point changing provider, they all provide “safe” “low risk” options that have taken a hammering over this year. 

If you want advice you have to pay for it, via an IFA. 

A_T

dunstonh said:

So I decided to switch to the low risk plan called Preserve. I lost 2k straight away - that was a month before the current shenanigans.

The current "shenanigans" started in October 2021 and have almost been going on a  year new.

to be fair the shenanigans have reached new levels in recent weeks.

dunstonh

patpalloon said:

By Shenanigans I am referring to the pensions turmoil caused by the 'mini budget'.

The mini budget didn't cause the shenanigans.    They just helped accelerate what was already happening.  

As I said, gilts have been falling for nearly a year.     The unwinding of the post-credit crunch printing of money and payouts under covid is happening much quicker than expected.

You increased the amount you invested into gilts at a time when the value of gilts was falling and was particularly volatile.   Pensionbee didn't do that.  You asked them to do that.  If you had been with Nutmeg or Wealthify or any other, they would have carried out your instructions just the same way.   And they would not be able to give you advice or opinion exactly the same way.

Albermarle

Pension providers are essentially administrators, not personal finance managers.
Of course they gave information and general guidance and make reassuring noises, but in the end the customer ( or their advisor) has to make the decisions.

patpalloon

dunstonh said:

patpalloon said:

By Shenanigans I am referring to the pensions turmoil caused by the 'mini budget'.

The mini budget didn't cause the shenanigans.    They just helped accelerate what was already happening.  

As I said, gilts have been falling for nearly a year.     The unwinding of the post-credit crunch printing of money and payouts under covid is happening much quicker than expected.

You increased the amount you invested into gilts at a time when the value of gilts was falling and was particularly volatile.   Pensionbee didn't do that.  You asked them to do that.  If you had been with Nutmeg or Wealthify or any other, they would have carried out your instructions just the same way.   And they would not be able to give you advice or opinion exactly the same way.

I moved my pension from a medium risk fund to a lower risk fund - as defined by them. If they can't give advice they should at least know the products they sell.

Albermarle

I moved my pension from a medium risk fund to a lower risk fund - as defined by them. If they can't give advice they should at least know the products they sell.

The way they define their funds, will be similar to the way all providers do, based on historical performance of that type of fund.

We are passing through a rare and unusual period where normally low risk investments have been hit badly.

So 19 times out of 20 the medium risk fund would be more risky than the low risk one.