The PensionBee Tracker plan is managed by State Street – it’s the simplest and cheapest plan, with a fee of 0.5% – and also the least risky.
The Match plan invests in a portfolio that more closely mirrors what the rest of the pension industry invests in. This one is managed by BlackRock and charges 0.6%.
The Tailored plan charges 0.7%, is also managed by BlackRock, and is a risk-managed approach that reduces exposure to equities the closer you are to retirement.
The average cost of a UK pension is 0.8% annually, so these are cheaper. This fee covers everything, including your transfers in, the underlying fund fees and making contributions. PensionBee never charges any exit fees – and it will let you know if your old providers charge exit fees of £10 or more.
It’s common for many pension providers to hide fees. Most pension plans will charge at least annual management fees and underlying pension fund fees. Some will also charge transfer-in fees, contribution fees, inactivity fees, commissions and exit fees.