LONDON: In a bold move to capture a significant share of the world’s largest Defined Contribution pension market, PensionBee Group plc, a prominent online pension provider, has announced its strategic expansion into the United States. The US market, which represents a staggering 80% of the global total with assets amounting to $22.5 trillion, presents a lucrative opportunity for the company.

Following an initial exclusive, non-binding agreement with a major US-based financial institution, PensionBee has now solidified its intentions by entering into a final binding contract, pending regulatory consent. This expansion will allow American consumers to seamlessly transfer their 401(k) plans into new Individual Retirement Accounts (IRAs), facilitated by PensionBee’s innovative platform.

The company’s US operations will be conducted through PensionBee Inc., a fully-owned subsidiary headquartered in New York. This entity will oversee the local business activities, including assembling a dedicated team and deploying PensionBee’s award-winning online retirement solutions and proprietary technology, previously successful in the UK market.

PensionBee Group plc will fund this venture from its existing resources, complemented by the expertise and significant marketing support from its US partner.

With the vast potential of the US market, PensionBee anticipates rapid growth for its American business, aiming to match or exceed the scale of its UK operations within the next ten years. In the UK, PensionBee currently manages £4.9 billion in assets for 240,000 invested customers. The company is on a trajectory to increase its market share to approximately 2% of the £1.2 trillion UK pensions market, with ambitions to reach 1 million customers. After achieving sustained Adjusted EBITDA profitability at the close of 2023, PensionBee is optimistic about maintaining profitability for the entire 2024 fiscal year on an Adjusted EBITDA basis.

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