It has now become commonplace to keep track of your pension online or via an app. There are plenty of different options to choose from. So how do you know what’s the best option for you?
What if you’re struggling to keep track of your workplace pension plan? Want to diversify your retirement savings and investment choices, but don’t know where to start? Wondering if it’s worth keeping hold of pension savings at all?
But what are the main differences between the two? And is there anything you should be keeping in mind before choosing one over the other?
In this guide we’ll be comparing them both, before drawing everything together in a quick summary. Read on to find out who’s the winner in the battle between Pensionbee vs Nutmeg!
Pensionbee Vs Nutmeg: A Quick Summary
- Both Pensionbee and Nutmeg offer you an always-on service. This means you can transfer, combine, contribute to, and withdraw from your pension pots online at any time through either investment platform.
- However, while
Pensionbeeis primarily focused on pension consolidation, Nutmegappears to offer more services. For example, you can also manage ISAs and general investments through the latter, but not through the former. Pensionbeewill, however, let you invest your contributions in stocks and shares depending on the plan you opt into.
Pensionbeeand Nutmegallow you to plan your investments in advance with smart projections. Pensionbeehas a simple calculator, while Nutmeghas advanced risk projections.
- Both services will let you withdraw your pension from the age of 55 or older.
Pensionbeeand Nutmegoffer different service plans, though Nutmeg’s approach appears to be a little more in-depth.
- Both systems allow you to benefit from the lucrative 25% government top-up.
Nutmegallows you to invest in your pension(s) through managed or fixed channels, as you prefer. To be able to use the fixed option, you’ll need to invest through the service’s ISA or general portfolio services. Pensionbeehas no minimum investment limits set. With Nutmeg, you will need to invest at least £500 to get started.
- Both services claim to offer ease of use and setup. However, even from a quick glance, it is clear that
Pensionbeemay be preferred by those looking for a more casual, straightforward management service. Nutmeg, however, offers a lot more options, such as its investment opportunities.
Let’s take time to look at both
Provided you transfer at least one pension over to the service, you can start making contributions with a view to withdraw once you are at least 55 years of age.
The service has a further calculator which will help you to understand drawdown, as and when you’d like to get started.
The platform’s aim, it seems, is to break down the clunky and cluttering pensions of old, instead collaborating them into a simple, singular digital standard.
It’s likely to be very appealing to many people, particularly young adult savers who want to invest in their future at their convenience.
But how exactly does Pensionbee work, and how can you expect to get started? Let’s break things down a little further.
Pensionbee will ask you a series of information with regard to your existing or previous pensions. These may be public or private, and from a variety of different providers and companies. Pensionbee makes a point of letting you know, too, that they work with a variety of leading, global names in money management and pension services.
What the service also offers is a pension check. This means that Beekeepers will be able to scan a national database for information on your pension(s) based on your employment history. This is a handy service which will appeal to anyone who may not have all the paperwork to hand.
Once you’re happy for Pensionbee to go ahead, you can ‘confirm’ your details, and they will make all the necessary contacting of your existing pension providers.
What the service also does is look out for exit fees on pension contracts and warns you about them before they consolidate anything.
Using The Service
Once you’re happy to go ahead, you can start by choosing any one of seven plans available. These plans are set up to allow you to invest in various companies, stocks and shares, depending on where you’d like your money to go.
Most people apparently opt for the ‘tailored’ approach, though you can choose set portfolios such as 4Plus, which works on growing your investment by 4% each year.
You can access Pensionbee at any time, and you can also use the app and online service to contact Beekeepers for advice.
- Retirement Planner – this lets you see the level of savings you might need based on long-term goals.
- Transfer and Contribution breakdown – a snapshot of what’s in a your pension pot, based on how much you’ve transferred, contributed and received from HMRC in the form of tax top ups.
- Past Performance – a chart showing the growth of your pension pot over time.
What Fees Do
What the service also offers is the option to halve your annual fee if you have more than £100,000 in your pension pot. You can easily calculate how much you can expect to pay annually through the
Fees are, handily, withdrawn from your
There is, however, a withdrawal fee which applies if you drawdown within a year of signing up and using the service.
Therefore, it may be worthwhile sticking with the service for a longer period to get your money’s worth. It is worth noting that, otherwise, you won’t expect to pay anything for a simple drawdown, as and when you’d like to get started.
Can You Transfer Any Pension into
For example, certain government pensions, such as those belonging to teachers, armed forces personnel, and those in the police, aren’t legally open for transferal. It is worth consulting a Beekeeper regarding this if you are concerned.
You can also transfer ‘defined benefit’ pensions into
This is a legal requirement if you have £30,000 or more to move over. What
Otherwise, you won’t be able to invest pensions based outside of the UK. A fantastic bit of flexibility in the terms, however, states that you can even move pension pots over which are already in drawdown.
Pensionbee Investment Style
Pensionbee appears to favour diversity in investment. What’s more, it presents investment opportunities in a straightforward manner. Its plans are neither too simple nor too complicated, which means seasoned investors are unlikely to be put off.
However, for anyone who may be new to investing at all, the approach here is very straightforward and appealing.
You can completely manage your investments and pension pot whenever you like, and from wherever you like.
Nutmeg is an online investment system which aims to break down pensions and money management for beginners and experts alike. Their website states that they aim to ‘democratise wealth management’.
The service focuses on giving their users access to world-class financial services, with an emphasis on keeping costs low.
Nutmeg offers personal pension management as just one of its major packages. From the start, you can choose from four different investment options. These include general investments, stocks and shares ISAs, and lifetime ISAs (also in stocks and shares).
The lifetime ISA option requires £100 minimum pay-in, while the pension service, and the others, require at least £500 from you to get started.
This is all backed by a risk system which, according to sources, is developed by Oxford Risk. What’s useful about this risk system when getting started is that Nutmeg asks you questions based on your experience. You don’t have to know much about pensions, markets or investments in general.
Nutmeg’s pension service allows you to transfer existing pension schemes into one manageable pot, while they regularly invest your money based on your initial profile.
Simply provide the service with information on your pensions, fill out their risk questionnaire, and their team will do the rest to tailor a plan based on your needs and expectations. For a lot of people, this complete management will be very appealing.
Using the Service
Nutmeg allows you access to your money and projections 24 hours a day, seven days a week. You can contact a member of the team at any time for specialist advice and support.
Before using the service, however, you will be asked to choose from a number of different plans. These will vary in terms of features and charges. We will cover fees a little further down.
The ‘fixed allocation’ plan, for example, will be preferred by people who would like their pension and investments to stand without intervention. This means a yearly review at most – and it is the cheapest option available.
Further plans, such as ‘fully managed’, will give you access to expert support whenever you need it. You can also take on their ‘socially responsible’ service, where you can request that your money is only invested in companies who are socially responsible.
It’s worth noting that, by default, pensions are treated as ‘managed’ portfolios. This is generally to your benefit, though fees will be higher than leave-alone services.
What Fees Do
What many people will find appealing about
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Can You Transfer Any Pension into
However, Nutmeg won’t accept defined benefit transfers directly. That said, they will transfer defined benefit pensions that are less than £30,000 in value, and you won’t need to seek financial advice to move these across. Any more than £30,000, however, and Nutmeg will require you to speak with a specialist first.
Nutmeg Investment Style
Nutmeg has a very ‘hands-off’ style of investing in many ways, even when it comes to their managed options. Their aim is to encourage investors and pension holders to entrust their team to make expert decisions on their behalf. This is a very attractive proposal, and one it appears you can be confident in taking.
Nutmeg’s style of pension investment focuses more on diversifying investments than building savings, though this may be preferred by many savers. Its service also appears to be aimed at those who already have experience of investing at some level.
While the platform and approach are simple, and the managed service takes away a lot of the stress of portfolio-keeping, there are still lots of facts, figures, and widgets to keep track of.
Nutmeg regularly invests money for you based on your initial profile with the service. As opposed to offering set plans at the point of sign-up, you instead agree to money being diversified and recommended for you as you go along.
This is going to appeal to people who prefer their pension investments to be a bit looser. It certainly seems that there is plenty of freedom.
If you want a more in depth look at the platform read our full Nutmeg review.
In any case, let’s get back to the comparison, and first of all take a look at Pensionbees overall performance.
Pensionbee – Pros and Cons
Pensionbeeinterface is user-friendly, and is perfect for people who are just getting started with savings, pensions and investments.
- Fees start from 0.5% annually, and halve after £100,000. Fees are deducted straight from your pension pot.
- There is no sign-up fee, and no exit fee after a year of service. There is also no minimum pay-in.
- You can transfer pensions into the service even when they are in drawdown. This means you may already be managing your pension before you move it across.
Pensionbeewill also consider defined benefit pensions, but encourage you to get financial advice before you make the switch.
- Set plans make it easy for novice savers and investors to choose what they want to do. There is also a ‘tailored’ option with more freedom.
- You can use and manage the service any time of day, throughout the year.
Pensionbeewill round up information on pensions for you with little information given. This will be appealing to anyone keen to get started as soon as possible.
- Upper fees at
Pensionbeereach 0.95% per year, higher than what some of the competition offers.
- If you transfer your whole pension or withdraw it in full within the first 12 months a fee of £480 will be charged.
- There are restrictions on certain government pensions, though this is a legal matter, and isn’t
- Some savers and investors may find the plans offered to be a little restrictive. The service does offer a tailored plan, however, if you prefer.
Nutmeg – Pros and Cons
Nutmegoffers a flat fee of 0.75% on anything less than £100,000. More than this, and the rate drops to 0.35%. This is a very competitive rate, though Pensionbee’s lowest rate is technically 0.25% after the £100,000 threshold is reached. Nutmegoffers a completely tailored approach to pensions and saving. Answer a few questions when you sign up and you will have a plan tailored to your needs and understanding.
- There are no exit fees unless you transfer stock to another person.
Nutmegoffers several investment services, such as ISAs. They can either be left alone, or managed, as you require. Nutmeggives you complete access to your portfolio at all times, as well as advice and guidance from staff when you need it.
- The risk system is designed by industry leaders, which should give investors extra confidence to get started.
Nutmegwill diversify your investments in pursuit of low costs and enhanced growth.
- You will need to invest at least £500 to get started.
- You won’t be able to move your pension across if it is already in drawdown.
- The yearly fee doesn’t vary as you are on one fixed managed plan.
- There are no additional plans to choose from unless you wish to start an ISA or general portfolio.
Pensionbee vs Nutmeg: Conclusion
Both, too, allow you to easily move your pensions across within around three months of signing up.
However, where they differ is in approach. Nutmeg appears to be aimed more at people with a little investment experience. Pensionbee, however, is straightforward enough for complete beginners to get into.
Pensionbee and Nutmeg are both reasonably priced, though only one rate applies to Nutmeg. Pensionbee has smaller and larger rates based on packages. However, some will argue that these fees are worthy of the support.
Both Nutmeg and Pensionbee are fantastic resources for pension consolidation and management.
If you’re interested in other matchups involving the platforms reviewed here, take a look at my take on Nutmeg vs Moneyfarm.
Alternatively, if you’re just looking for a new way to budget and get your money under tighter control, take a look through my Money Dashboard review.
Nutmeg vs Wealthify
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by Jon Craig
I am the creator of Project Financially Free and I started this journey to both educate myself and share my insights on personal finance. I’m passionate about financial literacy and I invite you to join me on this transformative path. See more.