PensionBee vs Vanguard for drawdown: fees and features compared (2026)
A side-by-side comparison of what PensionBee and Vanguard charge for pension drawdown, and what you get for it. On published charges alone, Vanguard works out cheaper at all three pot sizes modelled below.
Quoted yearly charges; what each covers differs (see below).
What each one charges
Provider
Published fee structure
What it covers
Fees checked
PensionBee
0.50%–0.95% depending on plan, halved on the portion over £100k (≈0.70% on a typical plan)
Includes fund charges
23 Sept 2026
Vanguard
0.15% flat fee (capped at £375 annually; minimum £48 a year, £4 a month, below £32,000)
Platform charge only; fund charges extra
23 Sept 2026
Annual cost by pot size
Pot size
PensionBee
Vanguard
Cheaper
£100,000 pot
£700
£150
Vanguard is cheaper
£250,000 pot
£1,225
£375
Vanguard is cheaper
£500,000 pot
£2,100
£375
Vanguard is cheaper
Vanguard is cheaper than PensionBee at every pot size between £10k and £1m.
Anything a fee does not cover, such as fund charges, dealing or withdrawal fees, is extra. Platform charges assume you hold funds. Some platforms cap charges on shares, ETFs and investment trusts, which can be much lower. See how we compare.
Features compared
Feature
PensionBee
Vanguard
What the charge covers
Includes fund charges
Platform charge only; fund charges extra
Investment range
8 managed plans
85+
Ready-made portfolios
Yes
Yes
Regular income payments
No extra charge
No extra charge
One-off withdrawals
No charge
No charge
UFPLS lump sums
Not confirmed
No charge
Minimum pot to start drawdown
Not confirmed
Not confirmed
FSCS protected
Yes
Yes
Fees checked
23 Sept 2026
23 Sept 2026
“Not confirmed” means the provider does not publish the figure or we have not yet checked it; it does not mean the charge is zero.
Which suits you?
Choose PensionBee if you…
prefer one all-in fee that already includes fund charges
Choose Vanguard if you…
want the lower quoted yearly charge at every pot size we model (£100,000 to £500,000)
would rather choose your own funds and see their charges separately
This is comparison information, not advice.
Free, impartial guidance:Pension Wise offers free appointments to people aged 50 or over with a defined contribution pension, and MoneyHelper’s investment pathways comparison tool compares drawdown providers’ ready-made options. Both are backed by the government.
Pros and cons
PensionBee
Pro: Extremely simple to use
Pro: Excellent mobile app
Pro: Easy pension consolidation
Pro: No investment decisions needed
Pro: High customer satisfaction
Con: Much higher fees than competitors
Con: Limited investment choice (5 plans)
Con: Not suitable for large pots
Con: No control over investments
Con: Fees don't reduce significantly
Vanguard
Pro: Extremely low annual fee capped at £375
Pro: Simple, transparent pricing
Pro: Access to renowned Vanguard funds
Pro: No withdrawal fees
Pro: Strong brand reputation
Con: Limited to Vanguard products only
Con: No individual shares trading
Con: Basic platform features
Con: Minimum £48 annual fee (£4/month for pots under £32k)
Frequently asked questions
Which is cheaper for drawdown, PensionBee or Vanguard?
Vanguard is cheaper at all three pot sizes we model. Quoted yearly charges for PensionBee and Vanguard are £700 and £150 on a £100,000 pot; £1,225 and £375 on £250,000; and £2,100 and £375 on £500,000. Vanguard is cheaper than PensionBee at every pot size between £10k and £1m. Anything a fee does not cover, such as fund charges, dealing or withdrawal fees, is extra.
What does PensionBee charge for drawdown?
0.50%–0.95% depending on plan, halved on the portion over £100k (≈0.70% on a typical plan). Includes fund charges. Regular income payments: no extra charge. One-off withdrawals: no charge. UFPLS lump sums: not confirmed. We last checked these fees on 23 September 2026.
What does Vanguard charge for drawdown?
0.15% flat fee (capped at £375 annually; minimum £48 a year, £4 a month, below £32,000). Platform charge only; fund charges extra. Regular income payments: no extra charge. One-off withdrawals: no charge. UFPLS lump sums: no charge. We last checked these fees on 23 September 2026.
What can I invest in with PensionBee and Vanguard?
PensionBee: 8 managed plans, including ready-made portfolios. Vanguard: 85+, including ready-made portfolios.
How do customers rate PensionBee and Vanguard?
PensionBee has a Trustpilot score of 4.6 out of 5 (checked 8 September 2026). Vanguard has a Trustpilot score of 4.7 out of 5 (checked 8 September 2026). Scores change over time, and they do not affect our cost comparison.
How do I choose between PensionBee and Vanguard?
Start with the yearly cost at your own pot size, then check what you want to hold, how you plan to take income and whether you want ready-made portfolios. This page is comparison information, not advice. Free, impartial guidance on your options is available from MoneyHelper's Pension Wise service.