PensionBee assets increase five-fold

PensionBee assets increase five-fold

Fintech pension provider PensionBee is expecting to surpass half a billion pounds in assets in due course.

The pensions consolidator said today (24 July) its assets will exceed £250m at the end of July, with a further £250m of pension assets being in transit, a mere two years after its launch.

In December, the fintech company reported assets worth £100m, when asset manager State Street Global Advisors (SSGA) acquired a minority equity stake in PensionBee.

PensionBee helps savers to consolidate their pension pots in one place. 

The firm has been a vocal proponent of consumer switching rights, and has already announced it will adopt a new a framework on pension switching proposed this month by a group of 10 trade bodies.

PensionBee also said the speed of pension transfers from legacy pension providers to the firm had increased considerably, helping to accelerate its growth in assets.   

Aegon was one of the providers which was accused of delaying transfers by the pensions consolidator before a spat between the firms ended earlier this year.

After several smaller pensions are combined into a PensionBee plan, a typical customer will have a starting balance of £25,000, the firm said.

The average age of the firm's customers has steadily risen from 37 in 2016 to 43 now, as the product increasingly appeals to mature customers in their late 40s and 50s, who are looking for an alternative to a traditional self-invested personal pension (Sipp), the company said.

According to Romi Savova, chief executive of PensionBee, "making pensions simple and easy clearly strikes a chord amongst UK savers".

She added: "It remains at the core of our company and together with our customers we will continue to build the UK’s most loved pension product, helping more people to save for a comfortable retirement."