UK-based digital bank Monzo has announced a new pension product designed to give users more control over their finances. This service allows customers to combine their old pensions into one fund that is accessible through the Monzo app.

Recent research indicates that over 75% of UK adults experience anxiety or confusion regarding their pensions, with 30% finding the consolidation process overly complicated. Additionally, 38% of respondents stated that a more accessible process would help them prioritise their pension management. What are the main advantages of the new offering? Monzo Pension offers several key features: Pension tracking: Monzo assists in locating old pensions at no cost, requiring only basic employment details.  Fund management: the consolidated pensions are managed by BlackRock, an asset management firm.  Investment strategy: the funds are adjusted based on the customer’s intended retirement age, balancing risk over time.  Integration: users can access their Monzo Pension within the Monzo app, alongside other financial services.  Guidance: the app provides simple, jargon-free guidance and educational resources.  Fee structure: the platform fee is 0.45%, reduced to 0.35% for Monzo Perks and Max subscribers, plus a 0.18% fund fee.

Representatives from Monzo cited by ffnews.com noted that customers often lack visibility and knowledge about their pensions, which contributes to high levels of anxiety. They emphasised that Monzo Pension addresses these issues by simplifying the process of managing multiple pensions and planning for retirement. For the opposite side of its client base, in July 2024, Monzo has revealed its plans to launch a special account for children under 16, allowing them to set savings goals and organise their money with ‘pots.’ This account has no fees for signing up, topping up, subscriptions, or spending abroad, and can be held by children aged six to 15 years old.

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