While we have extensive experience helping bp employees and alumni optimise their benefits, Emery Little operates independently and is not affiliated with or endorsed by the bp group, including BP Pension Trustees Limited, on behalf of the BP Pension Fund. This allows us to provide objective, independent guidance focused solely on your best interests.
With bp’s ShareSave window closing soon, many employees are considering whether to participate. The offer is attractive: save £5-500 monthly and buy bp shares at £2.87 (a 20% discount) with complete flexibility to withdraw if needed.
Here’s how to think about it from a financial planning perspective.
Concentration risk
The key consideration isn’t whether bp is a good company – it’s about concentration risk. When you work for bp and invest heavily in bp shares, you’re linking both your income and investments to the same source.
This matters because if challenging times arise, both your job security and investment value could be affected at the same time. It’s precisely when you might need financial stability most that both could be under pressure.
Three or five years?
3-year option:
- Shorter commitment period
- Less exposure to market ups and downs
- Quicker access to funds
5-year option:
- Longer time for potential growth
- Greater exposure to market cycles
- Higher potential returns but more risk
Your choice should align with your personal circumstances, risk tolerance, and financial timeline.
A balanced approach
Rather than an all-or-nothing decision, consider splitting your monthly investment budget. For example, if you’re planning to invest £500 monthly, you might allocate £200 to ShareSave and £300 to a diversified portfolio.
This approach:
- Captures the 20% discount benefit
- Maintains diversification across different companies and sectors
- Reduces concentration risk
- Avoids the regret of missing out entirely
Three key questions
- If bp faced unexpected challenges, could I handle both job uncertainty and investment losses at the same time?
- How much of my total wealth would be tied to bp if I maximise this scheme?
- What would I do with this £500 monthly if ShareSave wasn’t an option?
The bottom line
ShareSave can be a valuable part of your financial strategy, but it works best alongside diversified investments rather than as a replacement for them. The 20% discount and downside protection are genuine benefits, but they shouldn’t override the fundamental principle of not putting all your eggs in one basket.
The key to making this decision confidently is having a clear financial plan. When you know your overall financial goals, timelines, and how different investments fit together, decisions like ShareSave become much clearer. Without that bigger picture, it’s easy to make choices that seem attractive in isolation but don’t serve your long-term interests.
Think of a colleague who’s unsure about ShareSave or struggling with investment decisions. Share this article with them – it might help them see the bigger picture.
Want to learn more about how we help bp Leaders optimise their finances? Explore our bp services page here. If you’d like to discuss your specific situation, you can get in touch with our team directly.
