UK digital bank, Monzo has today launched a new product focused on helping people consolidate their pensions, something that might need to be done if someone has worked at multiple companies and accumulated various pensions in different places. With not much information, Monzo will track down past pensions and combine them into one place. The pension service isn't designed for replacing your current workplace pension, more of a self-funded option that can also help you tidy up old ones too. This type of pension is also known as a SIPP.

Monzo says that you will pay 0.63% of your investments value in fees, with a 0.45% platform fee and 0.18% fund fee. If you subscribe to Plus, Premium, Perks or Max then that platform fee will be 0.35%.

“We know from speaking with our customers that visibility and knowledge of their pension is low and anxiety is high - so we’ve designed Monzo Pension to solve exactly these pain points. Managing multiple pensions and planning for retirement is unnecessarily complex, which means people default to avoiding it and end up on the back foot. Now our customers can get on the front foot and keep tabs on their future financial goals alongside the rest of their finances in the Monzo app - planning not just for today or next month, but for years to come.”

Andy Smart - Monzo General manager of Savings, Investments and Pensions

Monzo Pension isn't available just yet, but interest can be made in the Monzo app, under the 'Savings & Investments' tab. Monzo has also introduced new accounts for under 16 year olds in the last few days, a much requested feature.

Source: Monzo, Monzo Community