As retirement approaches, pension savers often prioritise stability when it comes to their investment choices. The 4Plus Plan is designed for those aged 50 and over, offering a carefully managed pension solution.
At PensionBee we offer two default plans depending on your age:
- under 50s will be invested in our Global Leaders Plan designed for the ‘accumulation’ (or growth) years; and
- over 50s will be invested in our 4Plus Plan designed for the ‘decumulation’ (or withdrawal) years.
With a focus on balancing growth and stability, the 4Plus Plan aims to deliver consistent performance, helping savers confidently transition into retirement while optimising their hard-earned savings.
Read on to find out about the 4Plus Plan.
The 4Plus Plan at a glance
| 4Plus Plan | |
|---|---|
| Description | Invests your money in a range of assets that are adjusted on a weekly basis depending on market conditions by experts. |
| Money manager | State Street Global Advisors |
| Objective | Aims to grow your pension savings by 4% per year above the Bank of England’s base rate over a minimum five-year time period. Its holdings may be adjusted weekly depending on market developments, as it seeks to balance growth and stability. |
| Investment style | Active |
| Fee | 0.85% |
| Asset allocation | 60% equity, 23% fixed income, 10% cash and 7% other (this varies on a monthly basis). |
| Voting Choice | Yes |
| Consider social factors | No |
Objectives and investment focus
The 4Plus Plan is designed to support savers aged 50 and over as they approach and enter retirement.
The plan takes a medium-risk approach by investing in a mix of asset types:
- growth-oriented assets such as equity (company shares), commodities, real estate and others;
- moderate assets such as corporate bonds; and
- defensive (capital preservation) assets such as cash.
The 4Plus Plan asset allocation is well diversified and adjusted on a regular basis by a team of experts. This approach provides investors with stronger levels of control than passive index-tracking funds during highly volatile periods.
The plan aims to deliver long-term growth of 4% above the Bank of England’s base rate over a minimum five-year period, balancing growth and stability to meet savers’ needs.
Management style and fees
The 4Plus Plan follows an actively managed investment strategy, with its asset allocation adjusted weekly by State Street Global Advisors to reflect market developments. This dynamic approach ensures the plan remains aligned with the needs of savers who are nearing retirement, balancing growth opportunities with stability.
Holdings and fees
The plan invests in a diversified mix of assets, including equities, bonds and cash, to provide a balance of growth and stability. Equities offer higher growth potential, while bonds and cash traditionally reduce volatility and offer lower and steadier returns. To view the top 10 holdings in the 4Plus Plan, along with our full range of plans, check out our blog: Top 10 holdings in your pension.
Investing in the 4Plus Plan offers a dependable and responsible path to retirement, offering savers peace of mind as they prepare for the next stage of their financial journey. The annual management fee for the plan is 0.85%, and this fee is halved on the portion of your pension balance over £100,000.
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. 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.
