Legal & General, the insurer and asset manager that is one of the UK and Europe’s biggest financial services companies, has acquired the fintech start-up behind the pensions consolidation dashboard My Future Now for an undisclosed fee. My Future Now, founded by former IFA Alan Browne who will stay on as head of the new L&G unit, helps users trace any old pension funds they may have. The platform then consolidates them all into a single dashboard, making it easy for individuals to track and manage pension entitlements built up across different providers.
L&G’s acquisition will allow the company to offer the My Future Now service directly to its customers and through financial advisors ahead of government plans for to make a similar pensions dashboard platform available to the general public. The need for an efficient tech solution to help individuals better track and manage disparate pensions has become more urgent than ever over the past few years.
The new auto-enrolment system makes contributing into a private pension fund obligatory for most employees in the UK. It’s often possible for employees to take their auto-enrolment pension provider with them when changing jobs but not always. Some employers oblige employees to use their preferred provider and for many employees it’s also simply easier to do so than go to the trouble of transferring an existing auto-enrolment arrangement from a previous job.
And we’re changing jobs more than ever before. Those starting out in their career today are expected to have an average of 11 different auto-enrolment pension pots by the time they retire. Which is why the government is supporting an official public service that does something similar to My Future Now. However, the government pensions dashboard project is still in the planning stage. L&G have now taken their own initiative and will be able to provide their customers and partners with the My Future Now dashboard immediately.
That was referred to by Chris Knight, L&G’s head of retail retirement who commented on the value of the fintech acquisition:
“At Legal & General we fully support the government’s pension dashboard initiative, but the reality is that it may be years before full coverage is realised.”
In the meanwhile, L&G will, once My Future Now’s tech has been integrated, be able to offer the convenience of a pensions consolidation dashboard immediately.
L&G has made a number of fintech acquisitions in recent years, including Salary Finance, the salary advance service that helps employees avoid high interest short-term loans. They instead receive part of their salary early for a modest fee.