PensionBee has a new plan to appeal to the self-employed

By Oliver Smith on Monday 18 January 2021

Savings and Investment

Having a pre-existing pension is no longer a necessity to get started.

PensionBee has a new plan to appeal to the self-employed
Image source: Romi Savova/PensionBee.

Online pension provider PensionBee has launched a dedicated service for self-employed customers without previous pensions.

Until now, PensionBee has only let customers get started by transferring over their previous pensions, so this move should open up the service to a whole new market of savers.

A recent analysis from the Institute for Fiscal Studies showed the proportion of self-employed who pay into a private pension has plummeted from 48 per cent in 1998 to just 16 per cent in 2018.

By letting the self-employed start from scratch with PensionBee, the provider hopes to play its part in turning those figures around.

“Without the benefits of Auto-Enrolment, the self-employed are at a significant disadvantage and need access to simple and flexible products urgently if they are to avoid a shortfall in later life,” said CEO Romi Savova.

“In the absence of old workplace pensions to provide a head start, we know that the thought of saving from nothing can be daunting for many self-employed consumers, which is why we’ve made it as easy as possible for them to open a pension and put money aside whenever their business allows.”

Savova said that the self-employed currently make up 20 per cent of PensionBee’s customer base, a figure which will surely grow with the launch of this new plan.

PensionBee recently launched one of the first fossil fuel-free pension plans, with its members’ help to raise £100m to get the plan off the ground in just 34 days.

Last year, Savova also disclosed that PensionBee was looking into an IPO in the next 12-18 months, with city veteran Mary Francis helping the fintech gear up for a listing that could value the business at over £300m.

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