PensionBee has entered into a final binding agreement, subject to regulatory approval, with relevant parties as part of its proposed expansion into the US defined contribution (DC) pensions market.

In March, PensionBee announced plans to expand its operations into the US market after it entered an exclusive, non-binding term sheet with a US-based global financial institution.

Under the proposed strategic relationship in the US, PensionBee will enable consumers to consolidate and roll over their 401(k) plans into a new Individual Retirement Account (IRA).

The provider will deliver its US service through PensionBee Inc., 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 its online retirement proposition and UK-based proprietary technology available to customers in the US DC pensions market.

A monetary contribution to PensionBee Inc. will be financed from the existing resources of PensionBee Group plc, while its US-based partner will provide expertise and “substantial” marketing funding.

PensionBee said that it saw the potential for its US business to grow “rapidly” and become at least the size of its UK business over the next decade.

Commenting on the announcement, PensionBee CEO, Romi Savova, said the provider was pleased to have taken its next step towards deploying its customer proposition to customers across the US.

“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,” she stated.

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