Penfold, a startup that offers full stack pensions in smartphone apps, has closed an $ 8.5 million (£ 6m) funding round, of which $ 4M was from a crowdfunding campaign. The company is now approved by the FCA to operate a pension on its own rather than relying on third parties, and is aimed at freelancers who rarely save.
The round was led by the family office of Jörg Mohaupt, Bridford Group, allegedly the sole angel investor in Aden. Alan Morgan of MMC Ventures also invested.
Penfold says he built the backend infrastructure “from scratch”, Haikin told me. He said that legacy providers are made up of “100 schemes of aggregates” and are often still paper-based and require an army of people to administer. Thus a technology-driven approach means low overhead and the ability to offer attractive offers to freelancers.
CEO Pete Haikin told me: “I was self-employed for two years so there was no pension. I tried five times to establish one with Scottish widows, Standard Life, AJ Bell, etc. I gave up, because They all forced you to print something, call them or talk to the IFA. In an old company, I set up a workplace pension for 70 employees and none of them worked. As a result many people Left the money on the table. “
He said: “We rebuilt the entire backend of the pension so that all processes can be done quickly, quickly, flexibly and at a low cost. Then we put an amazing UX on it through a great app and amazing human customer service.” Features Search, track, consolidate old pension, others are included.
Haikin said that users download the app, enter the minimum legal details for KYC, select one of the 5 investment schemes based on age / risk appetite, how to fund (Recurring Direct Debit, Open Banking Topup , Transfer the second pension). They then receive HMRC 25% top up until retirement.
A “Find My Pension” tool is probably the most powerful feature of this startup, where you put in the name of your old employer, it tracks your old pension pot.
Its competitors include traditional providers such as Standard Life, Scottish Widow, Aviva and AJ Bell.
Pensions are definitely moving towards apps. For example, PensionBee has recently appeared on the London Stock Exchange. PensionB also recently announced an offer of self-employment.
Users will be charged an annual percentage on their pension balance (0.75%), but without any other charges. The other founders are Chris Eastwood (co-founder and co-CEO), Stuart Robinson (co-founder and CTO).