Launching a new digital product: Ready-Made Pension

Why is there this reluctance for people to engage with their finances?

The complexity of financial management and feeling that it might just take too long, are significant barriers people face when it comes to engaging with their money, and making changes that will benefit them in both the short and longer term. For example, one in five people (20%) said it was just easier to leave their mobile contract rather than speak to their provider and see if they could get a better deal. 

But, by making things simpler, we can help to improve people’s engagement levels. Nearly two fifths (37%) of people surveyed say they could cancel unused subscriptions quickly because they can do it on an app, while a quarter (24%) said the same for reviewing their pension contributions. 

Our in-app subscriptions checker has helped customers to quickly and easily identify where they make regular payments, and in the first quarter of 2024 alone we’ve seen over half a million subscriptions cancelled. In the same way, we wanted to remove the barriers that people face when it came to saving for their retirement, which is why in April we launched the Ready-Made Pension, giving over 21 million customers the tools to start a personal pension in minutes. 

What is a Ready-Made Pension?

The Ready-Made Pension is exactly what it sounds like; a personal pension that can be opened through one of our Lloyds Bank, Halifax or Bank of Scotland banking apps, and is shown alongside customer’s existing bank accounts. Over a third (35%) of UK adults use a banking app every day, and so the Ready-Made Pension is designed to be seamlessly incorporated into people’s established daily banking routines.

Financial complexity has often been seen as a barrier to people being able to save, so the Ready-Made Pension aims to address this and keep things simple. Customers’ details are all pre-populated when they open the product, so they don’t have to spend hours filling out forms. 

The proposition is then tailored to customers’ age and retirement plans and managed by experts, which is easy for a customer to track and alter should they need to. There are also in-built explainers and guides on tricky topics, like tax, so that customers get a better understanding of what they can expect from their money. Customers can then set up regular or one-time payments, so that they can get on-track to reach their retirement savings goals.  

Those with a Ready-Made Pension can also consolidate existing pension pots, enabling them to have all their long-term savings in one place. This can help to cut down on multiple fees across different pension providers, as well as to help avoid losing any pots in future.