Monzo Announces New Pension Product

Monzo, the UK’s largest digital bank, today announces Monzo Pension, a product designed to simplify pension consolidation and give customers more control over their financial future by bringing old pensions together into one fund within the Monzo app.

The new Pension product is a direct response to customer pain points, with new research finding that over three quarters of UK adults (77%) feel anxious, scared or overwhelmed when thinking about their pension with a third (30%) saying they found the process of pension consolidation too complicated. When asked what would enable them to prioritise their pension, 38% of UK adults cited a process that felt more accessible to manage alongside their everyday finances.

As well as bringing pensions into the Monzo app, the product gives jargon-free guidance to support customers in their journey to reaching their future financial goals.

Pensions done the Monzo way

• Detective work done for you: Monzo can track down your old pensions for free – with customers sharing as little detail as where they worked and when.
  Trust in Experts: Old pensions brought together into a retirement fund managed by BlackRock – entrusted to manage more money than any other asset manager worldwide.
• Make Your Money Grow: The funds use the age you aim to retire as a guide to balance the risk it takes, shifting from higher to lower risk investments over time.
• Accessible: Access your Monzo Pension directly through the loved and trusted Monzo app, where your pension fund sits alongside the rest of your finances.
• Clear and Informative: Simple, jargon-free guidance available throughout the journey and info-packed lessons all in the app.
• Transparent fees: Customers pay a 0.45% platform fee – 0.35% for Monzo Perks and Max subscribers – and 0.18% fund fee (0.63% of the investment value in fees annually). For example, if a customer has £10,000 in their Monzo Pension they’d pay £62.91 a year.

For more information, head to Monzo’s website: monzo.com/pensions

Andy Smart, General Manager of Savings, Investments and Pensions at Monzo, said: “We know from speaking with our customers that visibility and knowledge of their pension is low and anxiety is high – so we’ve designed Monzo Pension to solve exactly these pain points. Managing multiple pensions and planning for retirement is unnecessarily complex, which means people default to avoiding it and end up on the back foot. 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.”