PensionBee doesn’t have anything to do with your current workplace pension. You consolidate old pension pots into it and, in my case, pay a lower overall fee.
Also, my PensionBee pot has grown 15% since I joined them 16 months ago. Wish I’d heard of them sooner!
Depends on the charges and performance and if they are more advantageous than PensionBee.
You’re welcome. When you move jobs, you can move that pension into PensionBee. They don’t take a fee for moving a pension to them, they just charge the ongoing management fee that all pension providers charge. In my case, compared to previous pension providers the charges have been lower with PensionBee.
The pension you are paying into in your current job is nothing to do with PensionBee - you have all your old ones consolidated in PB but your current workplace pension scheme is with whatever provider your employer goes with. While you’re employed, you and your employer pay into their scheme. This is still totally separate from PB.
If you leave a job, you can choose to either leave your pension with your now ex-employer’s provider or you can move it elsewhere, e.g. PensionBee.
I basically have all my old pension pots with PB and my current workplace pension with Aegon. If and when I move on from my current employer, I will move my Aegon pension pot into PB. Hopefully I’ll be with a new employer who will enrol me onto their pension scheme!
The idea to transfer your old pensions into a single pot does not come from PensionBee and people have not waited for them to do so. It’s just common sense to transfer your past employer’s pension when you leave them to minimise charges, rationalise management and the admin. I’ve now transferred 3 ex-employers’ group pensions into my SIPP and did it before PensionBee even existed. I also did it every time I left an employer.
PensionBee launched using this marketing ploy, as if pension transfers and consolidation had not existed, to make people think that PensionBee had invented it. However, it was around the time watchdogs were complaining about pension managers distributing to their own shareholders the orphan assets running in the billions of many people (millions) having forgotten their ex-employers pensions or their heirs not knowing of the existence of such assets. Thus, they leveraged.the marketing push and free publicity from authorities trying to encourage people to consolidate their pensions.
According to what I can read above, PensionBee seems very limited in their offering and mainly for the unsophisticated. They must have automated the process in a quite user-friendly way and should learn from them when designing their pension transfer UI/UX once SIPPs are live.
Looks like the IPO could be soon as this is the 3rd message in a short time I have received. I would like buying into this stock even if I didn’t have early access to it.
Towards the end of last year we were happy to announce that PensionBee Limited would be exploring a listing on the London Stock Exchange in the next 12-18 months. We believe this is the natural next step in our development and, as part of our prospective IPO (initial public offering), we’d like to give our customers the opportunity to buy shares in PensionBee or its future parent company, if and when we float.
We’ve teamed up with PrimaryBid to give you easy access to the IPO when the time comes through their simple online platform. To be eligible to take part you’ll just need to have passed our security checks and be located and resident in the UK.
All you need to do is sign up (via the link below) and pair your PensionBee and PrimaryBid accounts. PrimaryBid will then digitally notify you with further details as and when they become available.
Signing up will not commit you in any way to participating in our prospective IPO. However, it will mean that your PrimaryBid account is ready at the beginning of any future subscription period and that you’ll enjoy any updates along the way. If we proceed with our plan to IPO, we’ll publish a prospectus which you should base your investment decision on.
We built PensionBee for customers like you and we want to give you the opportunity to become shareholders. Sign up with PrimaryBid to register your interest in our prospective IPO.
Or they could just be on a major campaign to see interest Either way will be interesting to keep an eye on when it eventually is available on FT as I think it hits a good section of people in its marketing.
PensionBee said a price range for the initial public offering has now been set at 155p to 175p per share, implying an estimated market capitalisation of between £346m and £384m.
I use Pension Bee and got a email from them offering the chance to buy before they are on the market i don’t know if it would be worth it.
seems like a crazy valuation with only £6m of revenue.
Thought this thread would have got more traction. Maybe Pensionbee is not that exciting
That made me check the article…
There’s no way this can be right, surely? Their revenue is less than £50 per customer, and they lost £80 per customer. That sounds like a terrible business model!
@ £360m the company is valued around 60x the revenues 2020…
Its going to be a dramatic fall in my opinion…
I don’t get it how they were able to IPO a company of such a small size…
As I understand it is was marketed between 300 and 350 and priced above that range. I have no information on them but presumably the projections were good and believable? No pop but trading flat so far so better than deliveroo (low bar )
My thinking why the market gave them such an valuation:
- growth rate >100% for the past couple of years;
- they are still very tiny (<0.1% of their addressable market);
- customers are very sticky with the retention rate >95%;
- good demographics of their customers (majority <40yrs), with avg pension pot growing each year;
- majority of operating costs are for marketing which is OK’ish as long as company grow.
Their valuation is >5000 GBP per invested customer (69k customers at year end 2020). Extremely high, but considering high growth that ratio should soon come down. Avg customer yields ~120 GBP per year, so I think that in the long run 1000 GBP per customer should be justifiable.
If we assume that company maintains 50-100% growth per year for at least 5 years the current valuation makes sense. But of course, a lot of success factors are priced in.
Is that an affiliate link? I’m guessing so because of the utm_campaign. If so, can you replace it with the regular link?
That’s a lot of words to not really say much.
3 paragraphs to say that the valuation is 63 times the annual revenue.
3 paragraphs to say that of their 476k customer base, only 17% have a pension with them.