Plum to launch its first pension productwritten by Bella Palmer
Plum also offers a green fund that features firms that meet environmental criteria
Fintech company Plum is launching its first-ever pension product with the subscription-free Plum Sipp. It is designed to get a new generation engaged with their lifetime finances.
The Sipp can be found alongside customers’ day-to-day spending, saving and other investments in the Plum app.
The onboarding system consists of six steps, so customers can use the pension platform, consolidate their old pensions or start making automatic payments straightaway.
According to Plum customers benefit from its smart saving algorithm designed to tuck away as much as the customer can afford.
It also splits their money between interest-bearing savings, investments and pensions according to the customer’s chosen saving strategy. Customers can also choose from funds that are risk-managed according to their current age and the remaining years to retirement.
Plum offers a range of diversified retirement funds, including a green fund that features firms that meet positive carbon and environmental criteria.
Plum co-founder and CEO Victor Trokoudes said: The way we work and live our lives day-to-day is changing fast. People want control and flexibility over their finances, so they can be resilient whichever way their life and career pans out.
He said opening a Sipp is a great way to make sure you look after your future as well as your present. With Plum, you can put your pension on autopilot with a system that can adapt to whatever lies ahead.
This new subscription-free Sipp is part of Plum’s strategy to expand its wealth-building offering in 2021.
The company is aiming to have stock trading and crypto options available later in the year.
With 1.5m customers across Europe, Plum is forecasted to have more than $1.5bn (£1.06bn) saved globally by the end of the year.
Tech firms have experienced a momentum over the past few months.
For example, the Australian advice technology provider Ignition entered the UK market three weeks ago. It will offer digital advice solutions to financial services, such as banks, wealth and asset managers, pension and insurance providers.
Prior to that, Standard Life launched a programme to enhance the technology across its advice business. The Adviser Experience Programme will deliver a series of new features and advice solutions throughout 2021 and 2022.
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