With £4.4 billion of assets under management and 250,000 customers by the end of 2023, PensionBee intends to offer its online retirement services and UK-based technology to American consumers
UK pension provider PensionBee recently announced its expansion into the US through an exclusive partnership with an undisclosed American financial institution, aiming to grow its presence in the world’s largest defined contribution pension market.
PensionBee revealed plans to establish and oversee its operations in Delaware as a wholly owned subsidiary, including the recruitment of a local team.
The company will have its operational headquarters in New York, while its US partner will contribute significant marketing funding.
With £4.4 billion of assets under management and 250,000 customers by the end of 2023, PensionBee intends to offer its online retirement services and UK-based technology to American consumers.
The US market represents 80% of the global DC pension market, totalling $22.5 trillion in assets.
Entry into a final binding agreement between the parties is subject to confirmatory due diligence, legal documentation and regulatory approvals, with launch expected in late 2024, PensionBee said in a statement.
Given the context of the enormous US market opportunity, PensionBee sees the potential for its US business to grow swiftly, becoming at least the size of its UK business over the next decade, the firm added.
Commenting on the deal, chief executive Romi Savova said: By entering the world’s largest Defined Contribution (DC) pension market, where many consumers still struggle to prepare adequately for retirement amidst an array of confusing and difficult to use investment options, our straightforward approach to online retirement savings will help millions of consumers look forward to a happy retirement.
The company clarified that this partnership will not affect its UK operations, as the two entities will remain financially independent.