No, PensionBee is not entirely free. While joining PensionBee is free, the service charges a simple annual fee once they begin actively managing your pension.
Understanding PensionBee's Fee Structure
PensionBee operates on a transparent fee model, distinguishing between the initial setup and the ongoing management of your pension.
- Free to Join: You will not incur any charges when you initially sign up for PensionBee or when you begin the process of transferring your pensions to them. This initial stage, including account creation and consolidation efforts, is provided without cost.
- Annual Management Fee: Once your pension is successfully transferred to PensionBee and they begin managing it, an annual fee will be applied. This fee covers the ongoing management, investment, and administration of your pension pot. The specific amount of this fee depends on the pension plan you choose and the total value of your pension, though it is described as "one simple annual fee."
PensionBee offers a diverse range of curated pension plans, and by default, they may invest your money in their most popular option, the Tailored Plan, which adjusts asset allocation as you age. Regardless of the plan chosen, the annual management fee commences only when active pension management begins.
For clarity, here's a quick summary:
| Aspect | Is it Free? | Details |
|---|---|---|
| Joining PensionBee | Yes | There are no upfront costs or charges to create an account and initiate a pension transfer. |
| Pension Management | No | A simple annual fee is charged once PensionBee starts actively managing your pension. |
This fee structure ensures that you can explore their services and consolidate your pensions without an immediate financial commitment, with charges only applying for the actual management of your funds.
