PensionBee Group plc
Incorporated in England and
Wales
Registration Number:
13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
24
May 2024
PensionBee Group
plc
Update on Proposed US
Expansion
PensionBee Group plc ('PensionBee' or
the 'Company'), a leading online pension provider, today provides
an update on its proposed expansion into the United States of
America ('US'), the world's largest Defined Contribution pension
market, representing approximately 80% of the global total and
$22.5 trillion in assets.1
Having previously announced that it
had entered into an exclusive, non-binding term sheet with a large,
US-based global financial institution in order to expand into the
US, the relevant parties have now entered into a final binding
agreement, subject to regulatory approval.
In the US, under the proposed
strategic relationship, PensionBee will enable consumers to easily
consolidate and roll over their 401(k) plans into a new Individual
Retirement Account ('IRA').2
● PensionBee will
deliver its US service through PensionBee Inc. which is a
wholly-owned subsidiary of PensionBee Group plc, established in
Delaware with operational headquarters in New York.
● PensionBee Inc.
will manage the operations of the US business, including the hiring
of a local team, making available its award-winning online
retirement proposition and UK-based proprietary technology to
consumers in the US Defined Contribution pension market.
● A financial
contribution to PensionBee Inc. will be financed from the existing
resources of PensionBee Group plc, with the US-based partner
providing its expertise and substantial marketing
funding.
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 growing
UK business over the next decade.
In the UK, PensionBee has
approximately £4.9 billion of Assets Under Administration on behalf
of 240,000 Invested Customers.3 PensionBee will continue
to grow its market share, pursuing a c.2% market share of the £1.2
trillion pensions market over the next 5-10 years and looking to
onboard 1 million customers. Having achieved ongoing Adjusted
EBITDA profitability at the end of 2023, the Company expects to be
profitable in the UK on an Adjusted EBITDA basis for the full 2024
financial year.4
Romi
Savova, CEO of PensionBee, commented:
"We
are pleased to have taken this important next step towards
deploying our award-winning customer proposition to customers
across the US, 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 to enjoy a happy
retirement."
Notes:
1. Investment Company
Institute, "Release: Quarterly Retirement Market Data" as at 13
December 2023. Includes the sum of Defined Contribution Plans and
Individual Retirement Accounts.
2. A 401k is an
employer-sponsored Defined Contribution retirement plan into which
employees can contribute and into which employers may also make
matching contributions. An individual retirement account ('IRA') is
a tax-advantaged retirement savings account into which an
individual can contribute either pre- or post-tax money and which
grows on either a tax-deferred or tax-free basis.
3. As at 31 March 2023.
Assets under Administration means the total invested value of
pension assets within PensionBee Invested Customers' pensions. It
measures the new inflows less the outflows and records a change in
the market value of the assets. Invested Customers means those
customers who have transferred pension assets or made contributions
into one of PensionBee's investment plans.
4. Adjusted EBITDA is the
profit or loss for the period before taxation, finance costs,
depreciation, share based compensation and transaction
costs.
Contacts
PensionBee
Becky O'Connor (+44) 7967
613925
Laura Dunn-Sims
Steven Kennedy
press@pensionbee.com
020 3557 8444
About PensionBee
PensionBee is a leading online
pension provider, making pension management easy for its customers
while they save for a happy retirement.
PensionBee helps its customers
combine their old pension pots, make flexible contributions, invest
in line with their goals and values and make withdrawals from the
age of 55 (increasing to 57 in 2028). PensionBee offers a range of
investment plans, including fossil fuel free and impact investing
options, from some of the world's largest asset
managers.
Operating in the UK Defined
Contribution market which exceeds £1 trillion of pension assets,
PensionBee has grown rapidly through its direct-to-consumer
marketing activities, creating a household brand name for the mass
market.
The Company has £4.9 billion in
Assets Under Administration and 240,000 Invested Customers as at 31
March 2024. PensionBee has consistently maintained a Customer
Retention Rate in excess of 95% and an Excellent Trustpilot rating
from more than 10,500 customers, reflecting its commitment to
outstanding customer service.
PensionBee is admitted to trading on
the Premium Segment of the London Stock Exchange's Main Market
(LON:PBEE).