New investment for auto-enrolment pension platform Smart Pension
Latest funding from LGIM will allow the fast-growing start-up to enhance its offering by giving users access to specially designed LGIM pension funds
Smart Pension, the auto-enrolment pension platform, has raised an undisclosed amount of funding from Legal & General Investment Management (LGIM), following a £3.3m round in June.
Launched in 2015 by Andrew Evans and Will Wynne, Smart Pension’s platform helps UK small businesses sign up their employees to a workplace pension scheme.
The free service – which appeared in our 12 days of Startups feature – charges it users the equivalent of £1.50 on an average salary.
The finance will enable the company to broaden its offering, giving small businesses access to a range of LGIM pension funds specifically designed for the Smart Pension platform.
Businesses with 30 employees or fewer are required to set-up an auto-enrolment workplace pension scheme, with the staging deadline for businesses of this criteria set for April 1 2017.
A recent survey found that 52% of businesses aren’t confident that they will be ready to offer a workplace pension within the deadline and it has been estimated that missed deadlines could cost small businesses £25m.
Co-founder Evans commented: “The market has responded very positively – we have already signed up thousands of employers and advisers and are now enabling tens of thousands of employees to save into a pension for the first time. Smart Pension ensures that auto-enrolment can be a success for all workers in Britain.”
Mark Zinkula, CEO of LGIM, said:
“In a short space of time, Smart Pension has built a powerful digital platform which has made auto-enrolment scalable and affordable for employers and their employees with minimum cost and disruption, thereby making saving for the future achievable for more UK workers.”
Learn more about auto-enrolment and what it means for your business here.