86% of self-employed workers don’t currently save into a pension, Penfold is on a mission to change that.
The startup is focused on helping self-employed workers start a pension in just a few minutes, and then works around educating and supporting customers who might not have additional employer-supported pension schemes.
A growing number of people are self-employed, with UK figures pegging the number at 15% or 5m people and rising, and of those 86% don’t currently save into a pension.
Hykin’s argument is that while auto-enrollment has triggered a wave of signups among the employed, the self-employed are being left behind.
“It’s almost like the self-employed, who we know are the backbone of the economy, are being ignored by the government and UK industry,” he says.
“There are absolutely no pension options out there which adequately serves those working for themselves.”
Penfold was founded by Hykin, Stuart Robinson and Chris Eastwood in May 2018 and has raised £2.4m in backing from angel investors and London VC Force Over Mass. In May 2019 Penfold was granted FCA authorisation.
In Penfold’s beta the company charged 0.75% of your total balance, equivalent to a similar pension held with Nutmeg or Pensionbee, and operates a similar pension plan scheme with Blackrock as its sole fund provider.