Monzo, the UK’s largest challenger bank, has announced Monzo Pension, a product aimed at streamlining pension consolidation.
The pension service is designed to empower customers to take greater control of their financial future by consolidating old pensions into a single fund accessible through the Monzo app.
The launch of Monzo Pension comes after research by the digital bank revealed that over half of UK adults (51%) are unaware of their total retirement savings, and nearly two-thirds (64%) have yet to consolidate their pension pots.
In addition to introducing pensions into the bank’s app, the product looks to help customers by providing easy-to-read guidance for their journey to reaching future financial goals.
In detail, Monzo has stated that it will offer a range of features designed to simplify pension management, including the bank tracking down old pensions for free, requiring only basic details such as where and when you worked.
The consolidated pensions are managed by BlackRock, a global asset manager.
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.”
Lately, Monzo has looked to expand its product offering after an impressive year of growth. Earlier this month, the digital bank launched a new service aimed at younger consumers.