PensionBee Warning: 'Tailored' Plan

engagedandopen

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

Albermarle

Considering the large variability in possible outcomes and the unpredictability of markets, I would not be too worried if I was in one aiming for 2035 or 2037 or 2039 or whatever. It is far from an exact science as it involves the future.
As long as you are approx in the right ball park I can not see it is a big issue.

Marcon

engagedandopen said:

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

Presumably you have raised this 'concern' with PensionBee? What did they say?

NithyaH

engagedandopen said:

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

I’m sure you can find the Blackrock funds elsewhere and for cheaper in any event. 

engagedandopen

Marcon said:

engagedandopen said:

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

Presumably you have raised this 'concern' with PensionBee? What did they say?

They said they couldn't afford to provide the full range.

engagedandopen

NithyaH said:

engagedandopen said:

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

I’m sure you can find the Blackrock funds elsewhere and for cheaper in any event. 

Not to my knowledge - though I haven't looked recently.  They seem to reserve them for pension funds (rather than making them available as OEICs or unit trusts).

QrizB

engagedandopen said:

NithyaH said:

I’m sure you can find the Blackrock funds elsewhere and for cheaper in any event. 

Not to my knowledge - though I haven't looked recently.  They seem to reserve them for pension funds (rather than making them available as OEICs or unit trusts).

I've just done a quick check (haven't actually made a trade) and they seem to be available for a SIPP, ISA or GIA via II. I would imagine other providers also have them.

Marcon

engagedandopen said:

Marcon said:

engagedandopen said:

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

Presumably you have raised this 'concern' with PensionBee? What did they say?

They said they couldn't afford to provide the full range.

If you have your heart set on this particular fund, is there anything to stop you transferring to a provider which does offer it?

Hoenir

Vanguard Target Retirement Funds are spaced at 5 year intervals. 2025, 2030, 2035 etc etc.  Workaround is to use more than one fund if precision is required. 

dunstonh

engagedandopen said:

NithyaH said:

engagedandopen said:

It has come to my attention that the so-called 'Tailored' Plan offered by PensionBee does not use the full range of Blackrock Lifepath target date funds: Pensionbee seems to offer every other one, so hard luck if you happen to be born in a 3-year period that is not directly covered by the LifePath funds they offer - they'll put you in the nearest one they have, but it is hardly 'tailored' to everyone in their target market, yet it gives the impression of using Blackrock's full Lifepath range.  There's surely a 'Consumer Duty' liability there.

In the same way Vanguard UK offer a continuous set of target date funds, so Blackrock UK themselves offer the full range of LifePath funds covering every target retirement age - Aegon UK uses the full range for some of their workplace pensions, even though PensionBee currently does not.

I’m sure you can find the Blackrock funds elsewhere and for cheaper in any event. 

Not to my knowledge - though I haven't looked recently.  They seem to reserve them for pension funds (rather than making them available as OEICs or unit trusts).

Most of the Blackrock funds available on various pension contracts in pension fund form either have an OEIC/UT equivalent or are a combination of Blackrock funds making them a multi-asset fund.

engagedandopen

QrizB said:

engagedandopen said:

NithyaH said:

I’m sure you can find the Blackrock funds elsewhere and for cheaper in any event. 

Not to my knowledge - though I haven't looked recently.  They seem to reserve them for pension funds (rather than making them available as OEICs or unit trusts).

I've just done a quick check (haven't actually made a trade) and they seem to be available for a SIPP, ISA or GIA via II. I would imagine other providers also have them.

So they are - launched 6th December last year (2023).