Fintech startup Chest is set to launch a new cash rewards-to-pension app this autumn, aimed at helping Gen Z and millennial consumers save for retirement by converting cashback from everyday spending into pension contributions. The launch comes as new research commissioned by the company reveals that one in three under-45s admit to feeling “pension panic”.
The Chest app will enable users to link their spending at retailers such as Amazon, Sainsbury’s, Starbucks, and Tesco, and deposit the cashback earned directly into their Chest pension. The platform is one of the first fintech challengers designed to address the growing disengagement of younger generations from traditional pension savings.
Under 45s face pension anxiety
According to a survey of 2,200 UK adults conducted for Chest, the high cost of living is preventing younger people from saving for retirement. Two in five (39 per cent) of Gen Z and millennials who are not yet retired reported being unable to put money into their retirement savings because they cannot afford it or have shorter-term priorities like buying a house.
This financial pressure is contributing to significant anxiety, with more than one in three (35 per cent) of this demographic feeling uncertain, anxious, or worried about their retirement savings.
Despite these challenges, the research also found that under-45s are active users of loyalty and rewards schemes. Nearly three-quarters (72 per cent) use or earn cashback from these schemes on a monthly basis, with 67 per cent saving between £6 and £40 per month through these methods. Chest calculates that a 27-year-old saving £30 a month from such schemes into a pension could accumulate an extra £100,000 by retirement.
A new approach to pension saving
The founders of Chest aim to bridge this gap by making saving a seamless part of daily life.
Ali Adam, the 34-year-old co-founder of Chest, said: “Despite being anxious about our financial future, battling the high cost of living means that we have nothing spare to put into a pension even when we earn above average salaries. There is a recession of trust towards pension companies, particularly for younger consumers. It’s not surprising that we are disengaged from saving for retirement. We built Chest to make saving easier by using money that we’re already earning from daily spending such as the weekly shop or buying a coffee.”
Jason Murphy, co-founder, added: “Young people, like many others struggling to keep pace with the high cost of living, are prioritising more immediate life costs and short-term savings. The long-term consequences will be hugely detrimental, impacting the retirement plans of millions of people and putting yet more burden on future Governments. We’re excited to be the first British startup to shake up the pension industry with an innovative new way for young people to save for retirement.”
Other findings from the research highlighted a desire among younger consumers for more guidance on pensions, with 43 per cent wanting to know how much they will need to live comfortably in retirement and 28 per cent wanting more financial information.
Chest was founded in August 2024 by Adam and Murphy and has received initial funding from angel investors. The startup has also been supported by the Baltic Ventures and FinTech Wales accelerator programmes.
