PensionBee Group plc is set to launch its online pensions in the United States later this year.

The London firm says it has entered into an exclusive, non-binding term sheet with a large, US-based global financial institution.

Under the proposed strategic relationship, PensionBee will deliver the US service through PensionBee Inc, to be established in Delaware as a wholly-owned subsidiary of PensionBee Group plc, with operational headquarters in New York.

PensionBee will manage the operations of the US business, including the hiring of a local team, while the US-based partner will provide its expertise and ‘substantial marketing funding’. 

PensionBee’s UK business will be run separately to the US offer. It has around £4.4 billion of assets under administration on behalf of approximately a quarter of a million customers.

The company expects to achieve profitability in the UK for the full 2024 financial year.

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“In the year of our 10th anniversary, having demonstrated underlying profitability, we have entered discussions with a view to deploying our award-winning customer proposition, supported by our innovative technology platform and marketing approach, in the United States of America,” said Romi Savova, CEO.

“This is a transformative step for PensionBee and for our stakeholders.

“By entering the world’s largest defined contribution pension market, where many consumers still struggle to prepare adequately for retirement amidst an array of confusing and difficult to use investment options, our straightforward approach to online retirement savings will help millions of consumers look forward to a happy retirement.”

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