Moneybox, a mobile investing app, has entered the pensions market with a product that allows clients to consolidate their workplace pensions into a self-invested personal pension.
Moneybox’s pension wrapper, launched today (March 10), will work as a consolidator of old defined contribution pots into a Sipp where clients will have an overview of the pension funds, where they are invested and how much is charged in fees.
This comes after Moneybox carried out a pilot of the service with a small sample of existing customers last year and developed the product further based on their feedback.
According to the company about 100,000 savers signed up to the pensions waiting list since April 2019.
Moneybox charges an annual platform fee of 0.45 per cent for pots up to £100,000 and 0.15 per cent for pots over £100,000.
Annual fund provider costs range from 0.12 to 0.30 per cent.
Through the personal pension, clients will have access to three passive funds, including the BlackRock LifePath fund, Fidelity World Index fund and Old Mutual World ESG Index fund.
The pension wrapper will also allow individuals to add contributions to their pot via the app.
This includes a feature which allows people to round up their regular spends, such as weekly coffees and tube rides, with the extra money going straight into their pension pot.
Ben Stanway, Moneybox co-founder, said: “The overwhelming level of interest we’ve seen so far in our pensions service demonstrates a real appetite for change in an industry that has been difficult and confusing for customers for too long.
“It has been fantastic to work with our beta customers to create a product that suits their needs and is fit for modern life. So far we’ve helped thousands of customers consolidate millions of pounds, and we can’t wait to help many more people take control of their financial future.”
Fiona Elston, retirement product manager at Moneybox, added: “The old and established pension providers are failing younger generations. Even the basics like seeing how much money you’ve got and where it’s invested are really hard.
“We are on a mission to change this. From today, Moneybox customers can easily consolidate their pensions, add money in a way that suits them and track their progress, all from the palm of their hand.”
amy.austin@ft.com
What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.
