Monzo co-founder backs pension start-up Compound in 500,000 raise to shake up workplace savings

"Workplace pension contributions across Britain are forecast to reach £480 billion by 2033, yet the sector remains dogged by outdated technology and disengaged savers."

"Research suggests that ninety-four per cent of companies encounter problems with their pension provider, a statistic that Compound's founders believe represents a significant commercial opening."

"Compound reports an employee opt-out rate of just 1.6 per cent, comfortably below the national average and a figure its founders attribute to removing friction from the process."

Compound, a workplace pension provider, has secured £500,000 in funding to improve the pension market, where many employers are dissatisfied. The company targets growing businesses with a digital platform that integrates with accounting software. Despite auto-enrolment's success, many employees struggle with understanding pensions due to poor user experience. Compound's platform aims to reduce administrative burdens and offers tools for employees to manage old pension pots. Early results show a low opt-out rate of 1.6%, indicating effective engagement strategies.

Read at Business Matters