Monzo and Centre for Inclusive Money at Nest launch research into self-employed pension savings gap
Monzo and Centre for Inclusive Money at Nest launch research into self-employed pension savings gap #
Monzo and the Centre for Inclusive Money at Nest, formerly known as Nest Insight, have announced a joint research initiative to address low pension saving rates among the UK’s self-employed. The initiative combines the Centre’s seven years of behavioural research with Monzo’s experience automating savings features for its customers.
The collaboration will examine whether banking features can make pension saving easier for sole traders, a group largely excluded from the automatic enrolment system that has pushed workplace pension participation to nearly 90% of eligible employees. According to figures cited by the partnership, just 17% of the UK’s 4.4 million self-employed workers currently save into a pension, despite three-quarters saying it is important to put money aside for retirement, a proportion comparable to the employed population.
The central question is whether automation and simple product design can do for sole traders what auto-enrolment achieved for employees. Monzo points to its own platform as early evidence: more than two million customers signed up to its automated Savings Challenge earlier this year, collectively setting aside over £350 million in 2025. Monzo Business customers also used the bank’s Tax Pots feature, which ring-fences a portion of income for future tax bills, to save £450 million last year.
The two organisations will run a customer initiative through Monzo Business to test whether similar default savings mechanisms could work for retirement contributions, with opt-out flexibility for those with variable or unpredictable earnings. The Centre’s most recent research has indicated that default savings models show promise for this group.
Jordan Shwide, General Manager at Monzo Business, said the bank wanted to help sole traders build retirement savings through easy-to-use tools and that the project would contribute evidence to help shape future policy. The findings are intended to be shared with the UK Government’s Pensions Commission ahead of its review of retirement outcomes expected in 2027. The Commission’s interim report has named low pension participation among self-employed workers as one of the main challenges facing the UK pensions system.
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