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Plum moves into retirement savings

Plum moves into retirement savings

Fintech investment app Plum has launched its first pensions product.

Launched in the UK in 2017 by former TransferWise staffer Victor Trokoudes and Alex Michael of TicTail, Plum uses AI to automate key parts of personal finance for its 1.5 million users, such as automated savings, bill switching and investing.

The new subscription-free Plum Sipp, or self-invested personal pension, can be found alongside customers’ day-to-day spending, saving and other investments in the Plum app, giving users complete visibility over their finances in one place.

Plum’s smart saving algorithm splits liquid assets between interest-bearing savings, investments and pensions according to the customer’s chosen saving strategy.

The pension product, which charges a 0.45% annual fee, offers a range of diversified retirement funds, including a green fund that gives greater weight to companies that meet positive carbon and environmental criteria. Users can also consolidate existing pension pots into the app, providing a 360 degree view of retirement savings.

Plum CEO Trokoudes, comments: “By bringing all your pensions into one app, you can manage your Sipp easily alongside your other savings and investments, and choose where your money goes to secure your future. Our goal is that checking your pension will become as easy and natural as checking your bank balance.”

The move into retirement savings is the first extension of the Plum app into new territory, with stock trading and crypto options set for roll out later this year.

Comments: (2)

A Finextra member
A Finextra member 08 June, 2021, 13:44Be the first to give this comment the thumbs up 0 likes

An fee of 0.45% is pretty much on a par with all the other bigger and leading advisors. Personally speaking, I see no incentives or reason to use them.

Nigel Sirett
Nigel Sirett - Vacuumlabs - London 08 June, 2021, 18:11Be the first to give this comment the thumbs up 0 likes

You may or may not be the target audience. For a certain segment this offers a potentially frictionless experience - no switching apps or going through multiple ID and KYC processes.

For other segments, the analytics will provide a useful tool to help users find excess money they can save or invest.


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