This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing in 2021 (as at Q1).
Two-thirds of UK adults have now received two doses of a COVID-19 vaccine, and the economy has fully re-opened. UK stock markets continue recovering towards pre-pandemic levels, whilst US stock markets continue to reach new highs. Nevertheless, economic fallout from the crisis may persist for some time, and investors could continue to experience some degree of market volatility, no matter where their pension savings are invested.
We began producing these quarterly performance updates last year, in response to feedback that you’d like to see the performance of your plan relative to our other plans. We provide this regular summary so you can do just that, as well as compare the performance of your plan with the major UK and US stock markets. We use these market comparators because they measure the performance of the biggest companies on each side of the Atlantic, and because most of our customers have a significant portion of their pensions invested in shares of UK-based and US-based companies. As the majority of our plans are diversified, most of our customers are invested in a mixture of geographies and asset classes.
As at the end of H1 2021 (the first half of this year), UK and US stock markets returned 11% and 15% respectively. This is significantly higher than performance for the same period last year when both stock markets were down (-17% and -3% respectively), and offers hope that economies are recovering.
Against this backdrop, PensionBee plans have performed well. Plans designed for savers under 50 have a higher level of investment in company shares compared to plans for older savers. These plans have all benefited from economic recovery and have grown between 7% and 12% over the last six months. Most plans for those aged 50 and over have also recorded growth and continue to preserve savings for those who are close to retirement through relatively low exposure to company shares, or none at all.
It’s important to remember that your pension is a long-term investment when considering short-term performance. For example, in the five years to the end of 2020, our plans have experienced average annual growth ranging from 5% to 10%, which should put our customers in good stead to build healthy retirement pots. PensionBee’s proud to offer long-term financial products in partnership with the world’s largest money managers: BlackRock, State Street Global Advisors, HSBC, and Legal & General.
Remember that past performance is not a guide to future performance and this blog has solely been prepared for informational purposes and not with the intent to influence future investment decisions. As with all investments capital is at risk.
Savers under 50
| Plan / Index | Money manager | Performance over H1 2021 (%) | Proportion equity content (%)^ |
|---|---|---|---|
| UK stock market | N/A | 11% | 100% |
| US stock market | N/A | 15% | 100% |
| Future World | Legal & General | 12% | 100% |
| Tailored (Vintage 2043-2045) | BlackRock | 12% | 89% |
| Fossil Fuel Free | Legal & General | 11% | 100% |
| Tailored (Vintage 2037-2039) | BlackRock | 10% | 77% |
| Shariah | HSBC (traded via SSGA) | 11% | 100% |
| Tracker | State Street Global Advisors | 8% | 80% |
| Match | BlackRock | 7% | 71% |
Sources: Index factsheets and direct from the money managers. All performance is reported in gross figures. Past performance is not an indicator of future performance. Capital at risk. These tables do not take account of any fees that may be levied for a particular investment. View our full fact sheets on our pension plans page. Plan performance may vary slightly from published factsheets due to timing differences and other negligible methodological differences. ^Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property.
Savers over 50
| Plan / Index | Money manager | Performance over H1 2021 (%) | Proportion equity content (%)^^ |
|---|---|---|---|
| UK stock market | N/A | 11% | 100% |
| US stock market | N/A | 15% | 100% |
| 4Plus | State Street Global Advisors | 9% | 67% |
| Tailored (Vintage 2025-2027) | BlackRock | 6% | 52% |
| Preserve | State Street Global Advisors | 0% | 0% |
| Tailored (Vintage 2019-2021) | BlackRock | 4% | 40% |
| Pre-Annuity | State Street Global Advisors | -6% | 0% |
Sources: Yahoo Finance, Investing.com, Morningstar and Direct from the money managers. The performance of BlackRock plans are reported as net figures, and all others are gross figures. Past performance is not an indicator of future performance. Capital at risk. These tables do not take account of any fees that may be levied for a particular investment. View our full fact sheets on our pension plans page. Plan performance may vary slightly from published factsheets due to timing differences and other negligible methodological differences. ^^Equity content refers to the amount of exposure each plan has to global stock markets and other listed risk-on assets, such as property.
An important note of caution: It’s impossible to forecast what will happen from quarter to quarter, and past performance should never be used to predict future performance.
For our customers who are already in retirement, and are perhaps thinking about withdrawing all of their pension, we hope that you will take comfort in the range of plans we have on offer. You may want to consider only drawing down what you need and keeping a close eye on the markets. Our Investment Pathways can help you select a plan based on your personal retirement aims.
We will continue to keep you regularly updated on what’s happening with your savings and if you have questions about your plan’s performance, or anything else, you’re welcome to get in touch with your BeeKeeper.
This is part of our quarterly plan performance series. Check out the next quarter’s summary here: How PensionBee’s plans are performing in 2021 (as at Q3).
Have a question? Get in touch!
You can check out our Plans page to learn how your money is invested in different assets and locations. You can always send comments and questions to our team via engagement@pensionbee.com.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
