TL;DR
- PensionBee is an FCA-regulated pension consolidation platform that transfers old workplace pensions into one online SIPP.
- Annual management charges range from 0.50% to 0.95% depending on the plan chosen.
- The Tracker plan at 0.50% per year tracks global stock markets and is the lowest-cost option.
- PensionBee is FCA-regulated and pensions are held by a separate trustee company, protected up to 85,000 pounds FSCS per provider.
- Best suited to people with multiple small pots from previous employers who want a simple, app-based consolidation.
- Not suitable for those wanting active investment management, complex drawdown, or defined benefit transfers.
Key Facts
What Is PensionBee?
PensionBee is an FCA-regulated pension consolidation service that allows people to transfer old workplace pension pots into a single online self-invested personal pension (SIPP). Founded in 2014 and listed on the London Stock Exchange in 2021, PensionBee manages over 5 billion pounds in assets under administration as of 2026. The core proposition is simplicity: transfer all previous workplace pensions into one place, managed through a mobile app, with transparent fees and no confusing jargon.
PensionBee is authorised and regulated by the Financial Conduct Authority (FRN 744931). Pensions are held by a separate trustee company (PensionBee Ltd as trustee), which means the pension assets are kept separate from the company operating capital. FSCS protection applies up to 85,000 pounds per eligible claim in the event of firm failure, though the separate trust structure provides an additional layer of protection.
PensionBee Plans and Fees
PensionBee offers several investment plans, each charging an annual management fee expressed as a percentage of the pot value. The fees are charged monthly as a deduction from the pension and there are no separate dealing charges, platform fees, or exit fees (provided the minimum pot value conditions are met).
The Tracker plan charges 0.50% per year and invests in a globally diversified index tracker portfolio. This is the lowest-cost option and is appropriate for those comfortable with market-level returns and willing to accept market volatility over the long term. The 4Plus plan also charges 0.50% for balances over 100,000 pounds and is managed by State Street, investing in a diversified multi-asset portfolio.
The Tailored plan charges 0.75% per year and adjusts the investment mix based on the member age and proximity to retirement, gradually moving to more conservative investments as retirement approaches. The Fossil Fuel Free plan also charges 0.75% and excludes companies deriving more than 10% of revenue from fossil fuel extraction or production. The Shariah plan charges 0.95% and invests in a Shariah-compliant portfolio. The Pre-Annuity plan charges 0.50% and invests in bonds and cash-like assets for those planning to purchase an annuity at retirement.
Who PensionBee Is Best Suited To
PensionBee is well suited to people who have accumulated multiple small pension pots from previous employers and want a simple, low-effort consolidation. If the alternative is leaving pots with various former employer schemes that charge higher fees or provide poor online access, consolidating into PensionBee at 0.50% to 0.75% per year may reduce total costs and improve visibility of the total pension position.
PensionBee is not suitable for everyone. It does not accept transfers from defined benefit (final salary) pension schemes, which require specialist advice and should rarely if ever be transferred. It does not provide active investment management or highly customised investment options beyond its set range of plans. Those wanting a broader SIPP with access to individual stocks and shares, commercial property, or a wider range of funds should consider a different SIPP provider such as Hargreaves Lansdown, AJ Bell, or Vanguard.
Drawdown and Retirement Options
PensionBee offers flexi-access drawdown at retirement, allowing members to take their 25% tax-free cash and then draw flexibly from the remaining pot as needed. Annuity purchase is not available directly through PensionBee: members wishing to buy an annuity would need to transfer or take the funds to an annuity provider separately. PensionBee has no minimum drawdown amount and allows one-off withdrawals as well as regular income.
Customer Reviews and Service
PensionBee consistently receives positive reviews on Trustpilot, with ratings typically between 4.5 and 4.8 out of 5. Common positive feedback relates to the clarity of the app, the transparency of fees, and the ease of the transfer process. Negative reviews most frequently relate to delays in receiving transfers from employer schemes (which are controlled by the sending scheme rather than PensionBee) and customer service response times during busy periods.
Frequently Asked Questions
Is PensionBee safe?
PensionBee is FCA-regulated (FRN 744931) and pensions are held in trust separate from the company assets. FSCS protection applies up to 85,000 pounds per eligible claim. The separate trust structure means pension assets are not at risk from PensionBee company insolvency in the same way as deposits with a bank.
What are PensionBee fees?
Annual management charges range from 0.50% per year (Tracker plan) to 0.95% per year (Shariah plan). There are no dealing charges, platform fees, or exit fees. The fee is deducted monthly from the pension pot.
Can I transfer a defined benefit pension to PensionBee?
No. PensionBee does not accept transfers from defined benefit (final salary) pension schemes. DB transfers require specialist regulated advice and should only be considered in exceptional circumstances.
Can I withdraw from PensionBee before retirement?
The minimum access age for pension drawdown is currently 55, rising to 57 in 2028. Early withdrawal before the minimum access age is not permitted except in cases of serious ill health. Withdrawals above the 25% tax-free cash amount are taxed as income at the marginal rate.
