Tillit has become the first UK pension provider to offer auto-escalation after launching its own workplace pension practical tools to mitigate the pension gender gap.
The Tillit Pension is a self-invested personal pension that allows members to save more by gradually raising contributions over time.
It said this aims to address the pension needs of the modern employee as a recent poll reported that 59 per cent of employees under 45 want to choose their own pension provider, rather than leaving it to their employer.
Additionally, 58 per cent of employees want greater control over how their pension is invested.
Tillit founder and CEO, Felicia Hjertman, said: “Your pension is one of the most important and powerful assets you’ll have - and yet many of us don’t know much about it.
“The quality of our life in the future depends on the decisions we make in our pension.
“With the ever-growing challenge of retirement affordability and the gender pension chasm, it is crucial that pensions are designed to support all members to make better and more informed decisions with their pension and in the future.”
Hjertman additionally explained that auto-escalation is built on the concept of 'Save More Tomorrow', which has been successful in the US but has never gotten off the ground in the UK.
“The Tillit Pension is built from the ground up to genuinely help people to achieve a comfortable retirement, not just slap sexy tech on existing, one-size fits all solutions,” she added.
“We know from our research that we are in the middle of a generational shift in how people think about their pension and what they need and expect from their providers.
“The Tillit Pension is a solution that meets the needs of modern employees.”
The product also offers “practical tools” to reduce pension saving shortfall for members taking parental leave.
Asset managers are also able to give their employees access to their entire suite of funds, empowering them to invest alongside all clients.
Tillit is currently offering its pension at its lowest platform fee of 0.25 per cent per annum.
The pension is not an auto-enrolment Sipp but is available via employers alongside their AE provider, giving employees the freedom to pick the best pension for them.
tom.dunstan@ft.com
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