Monzo partners with Nest to boost self-employed pension savings

By Milan Rojan

Monzo has partnered with the Centre for Inclusive Money at Nest to explore new ways of helping self-employed workers build retirement savings, addressing one of the UK’s most persistent financial inclusion challenges. The collaboration has combined Nest’s research into pension behaviour with Monzo’s digital banking capabilities to develop practical solutions that could encourage long-term saving among sole traders.

Jordan Shwide, General Manager of Monzo, said: “We’re excited to explore simple ways to help sole traders build retirement savings while contributing evidence that could shape future policy.”

The initiative has focused on the UK’s 4.4 million self-employed workers, of whom only 17% have contributed to a pension despite widespread recognition of the importance of retirement planning. Unlike salaried employees, who have benefited from automatic enrolment, self-employed individuals have managed retirement savings independently while navigating irregular and unpredictable income.

Ruth Persian, Associate Director of Research and Innovation at the Centre for Inclusive Money at Nest, said: “Monzo’s approach to product design will help us move promising research into practical solutions that support self-employed people in becoming more financially secure.”

The partnership has examined whether automated saving features integrated into digital banking services could improve pension participation without reducing flexibility.

The collaboration has built on Monzo’s previous success with behavioural savings tools. Customers have collectively saved more than $488 million through the bank’s automated Savings Challenge, while Monzo Business users have set aside approximately $610 million through automated Tax Pots designed to prepare for future tax liabilities. The partners have sought to determine whether similar automation techniques could support retirement saving for self-employed customers.

Findings from the initiative have been expected to inform future product development and have contributed evidence to the UK Government’s Pensions Commission as it has evaluated reforms aimed at improving long-term retirement outcomes.