Digital bank Monzo is to launch a personal pension which allows customers to combine pots.
The online bank made the announcement on Wednesday (July 24) where it explained the Monzo pension will be a self-invested personal pension, managed by BlackRock.
It will be open for customers who already have a Monzo current account and are between 18 and 70 years-old.
In an update to customers, product marketing manager Dani Shipp said: "Your Monzo pension will be invested in a target date fund, which focuses on helping to grow your money when you’re younger. Then taking care of what you’re building into retirement.
"Each fund balances the risk it takes, automatically shifting from higher to lower risk investments over time, using the age you aim to retire as a guide.
"The funds are managed by BlackRock. We’ve chosen to work with them again for their expertise as one of the world’s largest fund managers. They manage savings of over 12mn UK pension customers."
The pension is set to be rolled out over the next few months and existing customers are invited to register for updates on the progress.
The firm said fewer than 41 per cent of customers said they were confident they were on track to having enough money to retire with.
Monzo has partnered with pension-finding specialist, Raindrop, to help customers find and ultimately combine their old pensions.
"Combining your old workplace and personal pensions can help you figure out if you’re on track for the future you want, and make changes if you need to," added Shipp.
"But we know inertia is a big issue. Having to rummage through years of pensions paperwork only adds to that. And even if you want to start, you might not know all the details companies want.
"That’s why we’ve put a lot of effort into being able to find and combine your old pensions, with just a few details. We can get started, even if all you know is where you worked and when. But the more you tell us, the quicker it’ll be."
There are also set to be lessons in the app about pensions and how to help them grow.
Fees for the pension will be 0.63 per cent of the investment value in fees annually - that is a 0.45 per cent platform fee and 0.18 per cent fund fee.
Almost a year ago, Monzo announced its new investment platform which gives customers access to three Blackrock funds.
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