Duncan Rutherford: Too many retirees are navigating outdated systems that don’t reflect how modern retirement really works
PensionPay – a platform enabling members to access their pension savings through a debit card or digital wallet with an app interface – has launched today.
The fintech said its service will offer "instant pension access" through a PensionPay card – backed by Mastercard – that allows them to spend their pension in the same way as they use any other bank card.
For defined benefit schemes, PensionPay works with administrators and payroll providers to make simple adjustments to the flow of funds – making periodic payments available at the start of the period and control the available amounts on the PensionPay card. It said this reduces administrative burdens while improving the access and control pensioners have over their money.
PensionPay said the service also works for defined contribution (DC) schemes. It said that, by attaching PensionPay to existing pots, DC providers can give access on demand to periodic instalment pots and emergency pots.
It said this would improve asset retention and encourage longer investment whilst giving members the flexibility to access funds on demand. PensionPay added it is developing a solution to provide real-time tax codes to reduce administrative burdens for clients.
PensionPay chief executive Duncan Rutherford commented: "This is about so much more than just access – it's about independence, information and real-world utility. Too many retirees are navigating outdated systems that don't reflect how modern retirement really works. PensionPay is designed to change that."
One-size-fits-all solutions ‘no longer enough'
To coincide with the launch, PensionPay commissioned YouGov research to understand what today's retirees want from their pension providers, surveying around 1,000 adults aged 55+ with a private pension.
PensionPay said the report – Predictable Challenges. Practical Solutions – showed there was a gap between how pensions are administered and how people actually live.
The research found 67% of 55 to 59-year-olds surveyed with a DC pension or self-invested personal pension would consider switching to a provider offering flexible pension access, better financial tools, and retail discounts.
And it found 41% of 55 to 59-year-olds with a private pension would prefer access to their pensions on demand rather than fixed monthly payments.
Rutherford commented: "For too long, pension providers have entirely focussed on quantitative retirement metrics and not on quality of delivery for the person in retirement. This report is a wake-up call. Pensioners don't want improved retirement services tomorrow – they want them now. And they're willing to switch providers to get it."
PensionPay said the report highlighted that traditional, one-size-fits-all retirement solutions are no longer enough – noting that members now wanted pension experiences that match those they're familiar with in retail banking: personalised, digital, real-time, and rewarding.
Rutherford said: "We're entering the age of decumulation, yet the system is still accumulation led in design. Savers aren't just highlighting problems – they're handing us a blueprint for change."
