A new fintech platform enabling members to access their pension savings through a debit card or digital wallet with an app interface has launched in response to concerns that there is a clear gap between how pensions are administered and how people actually live.

The PensionPay platform was created in response to rising demand for personalised, easy access to pension savings and combines digital tools with real-world value, including cashback and spending summaries.

Indeed, research commissioned by PensionPay to understand what retirees want from their pension providers revealed a "clear gap" between how pensions are administered and how people live, suggesting that retirees aren’t disengaged, but are underserved.

The research found that 67 per cent of 55-59-year-olds surveyed (excluding those that answered ‘don’t know’) with a defined contribution pension or self-invested personal pension would consider switching to a provider offering flexible pension access, better financial tools, and retail discounts.

It also showed that 56 per cent of respondents may be cautious but are open to trying fintech solutions to securely manage their pension income.

In terms of offerings around private pensions, the research showed that 41 per cent of 55–59-year-olds with a private pension would prefer access to their pensions on demand rather than fixed monthly payments.

Meanwhile, 57 per cent of respondents with a private pension said a monthly summary of their pension spend would be helpful to better manage their finances.

Given this, the new platform aims to support better decision-making, access throughout retirement and respond to pensioners’ real-world needs.

PensionPay CEO, Duncan Rutherford, said that the platform 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“Too many retirees are navigating outdated systems that don’t reflect how modern retirement really works.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,” Rutherford said.

The report also suggested that traditional, one-size-fits-all retirement solutions are no longer enough, and members want pension experiences that match those they’re familiar with in retail banking.

PensionPay said that this means rethinking value for money (VFM) beyond fees and returns and instead access, flexibility, and relevance.

Rutherford pointed out that despite entering the age of decumulation, the system is still accumulation-led in design.

“Savers aren’t just highlighting problems – they’re handing us a blueprint for change,” he said.

“For too long, pension providers have entirely focussed on quantitative retirement metrics and not on the quality of delivery for the person in retirement."

Rutherford called the research a "wake-up call", suggesting that "pensioners don’t want improved retirement services tomorrow – they want them now and said they are willing to switch providers to get it".

The company also pointed out that retirees are not disengaged, they are underserved.

It noted that with the UK decumulation market growing rapidly, the time for "modern, member-centric retirement experiences has arrived".

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