Will the online pensions revolution take off?
Senior citizens and coins in glass jars are some of the common themes you find when you look up ‘pensions’ on an image search engine. But in recent years the industry has been catching the attention of fintechs.
In June, Plum announced it was expanding into retirement savings with the launch of a self-invested personal pension, two months after PensionBee floated on the London Stock Exchange.
Both providers, and others such as Moneybox and Penfold, to name a few, enable savers to consolidate pension pots.
Steve Webb, a partner at consultancy LCP, says: “There is no doubt that there is a big opportunity here. In addition to the historic defined contribution pots which people have accumulated, automatic enrolment means that another 10m people are now saving into a workplace pension, and this is overwhelmingly into a DC pot.
“Coupled with job moves and the lack of government action on small ‘stranded’ pots means more and more people will start to accrue multiple pots and their instinct will be to consolidate.”
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