This week is Pension Awareness Week, which means it’s time for people all over the UK to start seriously thinking about their retirement plans.
But knowing exactly how pensions work, and how much to invest, can be tricky. Here, we break down what you need to know and showcase some startups innovating in the space.
How Do Pensions Work In The UK?
In the UK, all citizens are eligible for a state pension once they reach a certain age. Currently, this is 65, however it can increase in the future.
A person can claim the full new state pension if they have at least 30 years of national insurance contributions and were born after 1951.
On top of this, many people will also have a private pension, which they contribute to a scheme every month. In a lot of cases, employees may add money into the pension scheme as well, which is a common workplace perk.
These pension schemes then invest the money in certain stocks and bonds. Whilst you may be able to look at your pension investment allocation, many funds will have automatic allocations that invest for long-term gains. As a person gets nearer retirement age, the fund may re-invest their money in less risky funds to ensure there is a lower chance of volatility.
How Much Does The Average Brit Have In Their Pension?
According to the ONS, the median average pension pot in the UK is 32,700. Of course, this encompasses all pensions and those in the 55-64 age bracket do have a higher pot average.
When it comes to private pensions, the ONS estimates that around 45.2 million people have a private pension, meaning they are investing to top up their state pension.
Luckily, thanks to a number of startups, managing your pension is easier than ever before. Here, we take a look at the companies innovating in the space, helping people plan for the future.
More from Startups
- Top Fintech Startups in Germany
- Startup of the Week: NFTfi
- Top 10 New Startups In Belgium
- Experts Share: How Important Is Sustainability For Startups In 2025?
- World Environment Day: 10 Startups Protecting The Environment
- From Industrial Core to Deep Tech Engine: Why the Ruhr Region Could Be Europe’s Next Big Startup Story
- Top 10 AI Startups in London in 2025
- Alternatives To Duolingo
PensionApp
If you’ve had multiple private pensions opened by multiple companies, it can be hard to keep track of them all. PensionApp simplifies this by finding and combining a person’s existing pensions and transferring them into a new plan.
This allows people to track exactly how their pension is growing, giving them the option to make adjustments as they see fit, With low fees and an easy to use app, it’s a great way for people to take control of their retirement funds.
Penfold
Penfold is a modern app that helps people take control of their pensions. Recognising that traditional pension schemes can be hard to understand and difficult to adjust, Penfold makes the process easier by allowing users to manage everything they need through an app.
Not only that, but they can increase, pause or adapt contributions if needed, allowing them to have visibility over their funds and more efficiently plan for the future.
PensionBee
PensionBee is a popular platform in the UK that pulls together multiple pension pots into a single online plan.
Users can track their pension balance in real time, manage their contributions and choose their investment plans. The platform’s easy-to-use platform has made it a popular choice amongst those looking to boost their pension plans.
PensionBuddy
PensionBuddy combines online tools with human advice to help people better plan their retirement.
Through tools like the retirement health check calculator and advice around investing, PensionBuddy aims to empower people to make more informed decisions about their financial futures.
MyPensionID
MyPensionID focuses on helping people connect to their unpaid pensions – helping them recover lost assets. With £37 billion of unclaimed pensions in the UK, it’s a big problem to solve.
MyPensionID works by keeping people connected to their multiple pension pots, reducing the need for letters and statements, and allowing them to track them all online. This helps people keep on top of multiple pots, ensuring they are more informed about their finances.
Moneybox
Whilst not a pension app per se, Moneybox is a savings and investment app that has a personal pension product.
It is designed to make saving for retirement easy, allowing people to make additional contributions and stay informed around where their funds are invested. Moneybox also allows customers to round up their purchases to the nearest pound and invest the spare change into their pension – helping them save more easily.