The People’s Pension

The People’s Pension’s parent, not-for-profit B&CE, has been offering low-cost pensions to workers in the building trade for many years prior to the launch of auto-enrolment. A key advocate of stakeholder pensions in the previous decade, it has now grown into one of the biggest auto-enrolment master trusts, with 1.7 million members. No master trust holds more assets in its default.

The People’s Pension’s default operates an 80/20 equity bond approach in the growth phase, moving to 38 per cent equities 5 years before state retirement age. Performance has been very close to the Corporate Adviser Pensions Average (CAPA) in the growth phase, with an average level of risk, and has been above average 5 years pre-retirement.

Derisking starts 15 years before state retirement age, reflecting the earlier than average retirement age of workers in the building trade. and its glidepath targets a mix of cash, government and corporate bonds, and equities at retirement.

Members can choose to invest in one of three investment profiles – balanced, cautious or adventurous, as well as eight individual ‘self-select’ funds. Investment switches are free.

In 2016 it partnered with LV= to offer retiring members regulated robo advice at a cost of £49.

Asset Allocation charts

Data as of 31.03.18
BenchmarkComposite benchmark
Alternatives offered to defaultThree investment profiles: Balanced, Cautious: & Adventurous
Charging structure for membersA single AMC of 0.5%
Charging structure for employersA one-off set-up charge for employers
Total assets as at 31.3.18£3.78bn invested in the default profile (out of a total of £3.95bn)
Active members in default1.7 million
% active members in default99%
Transfer out to draw income?No
Approach to non-advised drawdownAlready offers it
Does default invest in ESG-screened funds?No – may introduce in next 2 years
Scheme administratorB&CE Financial Services Limited
Scheme investment adviserBarnett Waddingham LLP
Asset managers usedState Street Global Advisors
1 Year3 Year5 Year
Annualised returns before costs (%)
Annualised risk477
Sharpe ratio0.30.91.1
CAPA Index +/--0.011.761.06
1 Year3 Year5 Year
Annualised returns before costs (%)
Annualised risk5.98.58.1
Sharpe ratio0.30.91
CAPA Index +/-0.070.710.3