Online provider Pensionbee has launched in the US, entering the world’s largest defined contribution market for the first time.
The pension firm confirmed its US subsidiary has been registered with the US Securities and Exchange Commission.
The US is the largest defined contribution market, with £17.7trillion in assets – or 80 per cent of the global total.
American dream: Pensionbee, led by chief exec Romi Savova (pictured), confirmed its US subsidiary has been registered with the US Securities and Exchange Commission
Pensionbee expects rapid growth in the US and is aiming to administer the equivalent of £15.4 billion to 19.3billion in defined contribution assets over the next decade.
This would put it on par with its UK arm.
Pensionbee is an app that puts contributions in one place.
In the UK it has £5billion of assets under administration, with over 250,000 invested customers.
Founded in 2014, the platform allows users to contribute whatever they like and start withdrawing funds when they hit 55.
Defined contribution pensions are based on how much is paid in by individuals; defined benefit schemes are usually workplace pensions based on salary and how long you worked there.
The company makes money by taking a regular management fee. Shares rose 8.7 per cent, or 13.5p, to 168p yesterday and are up more than 70 per cent this year.
When Pensionbee announced its plans to conquer America in March, chief executive Romi Savova said this would be a ‘transformative step’.
Yesterday, Savova said: ‘Our vision is a world where everyone can enjoy a happy retirement.’
She added: ‘Many consumers still struggle to prepare adequately for retirement amid an array of confusing and opaque investment options.’
Pensionbee wants to continue to boost its hold on the pension market. It hopes to achieve a 2 per cent share of the £1.2 trillion pensions market over the next five to 10 years.
And in a dose of good news for its investors, it expects to be profitable in the UK for the full 2024 year.
Its share price has recovered after Liz Truss’ mini-Budget sent it plunging. Now it is just 0.7 per cent cheaper than when it debuted in 2021 with an initial £365million valuation.
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