Pension Bee

scotty1971

Has anyone invested in the new Pension Bee Impact pension plan. And if so what are your thoughts on it.
Thanks

Scott

dunstonh

Its worth noting that its not actually a new pension but a different investment selection aimed at those that want ESG investing.

So, pretty much similar to what is available on most modern pensions, certainly all whole of market pensions.   So, it seems an obvious choice for a robo to offer.   I wouldnt use it but its not aimed at me.  It isn't really aimed at those who are serious about their ethical investing either.   Its more for those who want to feel as if they are making a difference but wouldn't know where to start when it comes to investing and dont mind putting their money where their mouth is (historically, ethical and ESG investing results in lower returns in most periods).

Bimbly

I hang around this board far too much and even I didn't know what ESG actually stands for and had to look it up. For everyone else who is wondering:

"ESG stands for environmental, social and governance": https://www.ajbell.co.uk/learn/esg-investing

scotty1971

Bimbly said:

I hang around this board far too much and even I didn't know what ESG actually stands for and had to look it up. For everyone else who is wondering:

"ESG stands for environmental, social and governance": https://www.ajbell.co.uk/learn/esg-investing

Thanks for that. I had 2 extremely small pensions which came to approx £27000. I put these into pension bee in 2017 and are currently in the Fossil fuel free plan,current value is £39000. So not a bad return i think.  Another question i have is, I turn 55 in 3 years and I was hoping to take whatever the pensions value at that time as a lump sum. This a good idea?

dunstonh

 I put these into pension bee in 2017 and are currently in the Fossil fuel free plan,current value is £39000. So not a bad return i think. 

Given the events in that period, you would expect a portfolio that excludes fossil fuels to do worse than one that includes them.

If you are taking the money out in 3 years, then cash is probably the best option.

Another question i have is, I turn 55 in 3 years and I was hoping to take whatever the pensions value at that time as a lump sum. This a good idea?

Impossible to answer with that limited information.
Why do you intend to take it as a full lump sum at 55?  (i.e. what objective does it meet?)
How will that impact on your retirement modelling for the next 40 years?

Malthusian

Aka "ethical investing", but the industry changed it because people were starting to cotton on that "ethical" was meaningless.
So to replace this meaningless label they invented a new label that covers literally anything. (Imperial Tobacco is an ESG investment because cigarettes facilitate social interaction. I am joking.)

Albermarle

Another question i have is, I turn 55 in 3 years and I was hoping to take whatever the pensions value at that time as a lump sum. This a good idea?

If you are confident that you will have sufficient retirement income from other sources for maybe the next 40 years, and if you have a plan for the money, then it might be a good idea. Note that 75% will be taxable and if you are still working it might tip you into a higher tax bracket.

Otherwise might be better left where it is for later . That is what pensions are for.

Albermarle

Malthusian said:

Aka "ethical investing", but the industry changed it because people were starting to cotton on that "ethical" was meaningless.
So to replace this meaningless label they invented a new label that covers literally anything. (Imperial Tobacco is an ESG investment because cigarettes facilitate social interaction. I am joking.)

The FCA seems to be making some moves to regulate what can be called an ESG fund. I read somewhere that at least one third of current ESG funds will have to remove the label, and that another third may just drop out due to cost of checking compliance with guidelines properly.

penners324

Albermarle said:

Another question i have is, I turn 55 in 3 years and I was hoping to take whatever the pensions value at that time as a lump sum. This a good idea?

If you are confident that you will have sufficient retirement income from other sources for maybe the next 40 years, and if you have a plan for the money, then it might be a good idea. Note that 75% will be taxable and if you are still working it might tip you into a higher tax bracket.

Otherwise might be better left where it is for later . That is what pensions are for.

If you take the entire pension pot you will trigger the MPAA, meaning you restrict future pension contributions to £10k a year.