PensionBee, the UK-based online pension provider, has announced plans to enter the US market.
The firm has struck an exclusive, non-binding agreement with an unnamed US-based “global financial institution”.
PensionBee will hire a local team to manage the US operations of PensionBee Inc, which will be registered in Delaware with an operational headquarters in New York.
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Meanwhile, the unnamed partner will provide “expertise and substantial marketing funding”.
The business is expected to launch in late 2024. A key driver for the expansion is the size of the US defined contribution pensions market. Worth an estimated US$22.5 trillion, it accounts for around 80% of the global market.
PensionBee’s business model is based on consolidating clients’ various pension plans into one online account.
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According to PensionBee, the US business will allow US savers to roll their 401 (k) funds into a new individual retirement account.
“Given the context of the enormous US market opportunity, PensionBee sees the potential for its US business to grow rapidly, becoming at least the size of its UK business over the next decade,” stated the company.
The announcement comes after PensionBee posted promising results for 2023 with a 56% increase in invested customers and a 38% rise in revenues to £17 million (US$21.54 million).
