By Daniel Lanyon on 2nd December 2019
The investment app, which closed a £14m round in July, has made pensions part of its 2019 growth plans.
Moneybox has been testing a novel strategy to a closed group of its users to encourage them to transfer over their legacy pensions pots: an eqity stake in its business.
While the offer is not open to all yet, it seems to resonate with a pool of users allowed to access the trial offer. The firm has already given away more than £300k worth of shares, AltFi understands.
The firm announced its move into the pensions market, a big expansion from its original ‘round-ups’ service which focused on general investment accounts and ISAs, at the start of 2019 which sees it take on the likes of PensionBee.
In an email sent to its beta group Moneybox said: “We want to build the best possible pension experience and we need your help to do it. We want to thank our pension community for supporting us so far and give them the opportunity to be a closer part of our journey in the future. Think of it like crowdfunding, except you don’t have to pay for the shares.”
To be eligible for Moneybox shares a minimum total pension transfer value of £500 applies but this can be made up of one or multiple transfers. If you transfer your pension to another provider, your shares will be returned to Moneybox. The value of a single share is £25, Moneybox says in the email, but gives an indication as to how many total shares are in existence.