Challenger bank Monzo is entering the pensions market with the launch of a new product to consolidate pension contributions.
Monzo Pension was launched by the fintech following customer research that found the majority of UK adults (77%) felt anxious about pensions and just under a third (30%) found the process of pension consolidation complicated.
Monzo Pension will track old pensions attached to users and consolidate them into the London-based company’s main app. The contributions will then form a retirement fund managed by Monzo partner BlackRock.
Users can customise the risk of investments based on target retirement ages and can access the pension through the Monzo app.
“Managing multiple pensions and planning for retirement is unnecessarily complex, which means people default to avoiding it and end up on the back foot,” said Andy Smart, general manager of savings, investments and pensions at Monzo.
“Now our customers can get on the front foot and keep tabs on their future financial goals alongside the rest of their finances in the Monzo app – planning not just for today or next month, but for years to come.”
The latest product launch comes a month after the neo-bank posted its first-ever full year of profit, posting £15.4m pre-tax in its latest financial results.
Monzo CEO TS Anil said last month during London Tech Week that the company was successfully taking on the “incumbents” in legacy industries such as banking and pensions.
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