A new British fintech startup is aiming to shake up the pensions industry with an app that turns cashback from everyday spending into long-term retirement savings.
Chest, set to launch this autumn, has already built a community of more than 1,200 early adopters who want to be among the first to open a Chest pension. The company hopes its model will resonate with younger consumers who are often disengaged from traditional pension products but are regular users of loyalty and cashback schemes.
Tackling ‘pension panic’ among under-45s
Chest’s proposition comes against the backdrop of mounting anxiety about retirement savings among younger workers. New consumer research commissioned by the company found that two in five Gen Z and millennials (39%) who are not retired say they cannot afford to contribute to a pension at all, or that short-term priorities such as saving for a house deposit or starting a family take precedence.
By comparison, 34% of Generation X — those aged between 44 and 60 — admit they too cannot afford to put money aside for retirement. More than one in three people under 45 (35%) also describe themselves as uncertain, anxious or worried about their retirement prospects, while fewer than one in three (29%) feel confident.
Chest’s co-founder Ali Adam, 34, said these findings underline why a fresh approach is needed. “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.”
Turning coffee into capital
At the heart of Chest’s model is the idea that small, everyday rewards can become significant over time. The app will allow users to channel cashback from major retailers such as Amazon, Sainsbury’s, Starbucks and Tesco into their pension. Additional automated savings can also be directed into the account.
According to Chest’s modelling, a 27-year-old who saves just £30 per month — equivalent to £1 a day — through cashback and loyalty rewards could accumulate an extra £100,000 by the time they retire.
Jason Murphy, Chest’s co-founder, also aged 34, believes this innovation is urgently needed. “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.”
Loyalty habits drive behaviour
Chest’s research suggests the app could find fertile ground among younger demographics. Nearly three-quarters (72%) of Gen Z and millennials already use cashback or loyalty schemes each month, and many say they switch to brands that offer attractive incentives. On average, 67% of respondents in this age group are saving between £6 and £40 every month through cashback, discounts and loyalty points.
This behaviour is markedly different from older generations. While only 18% of Baby Boomers have ever bought a refurbished smartphone, for example, more than a third of Gen Z have. A similar generational shift appears to be under way in attitudes to saving, with younger people open to innovative financial products that tie into their digital lifestyles.
A new type of pension challenger
Chest is positioning itself as one of the first fintech challengers to design pensions around the way digital-first generations live and spend. The company hopes to grow into one of the UK’s largest personal pension providers and expand internationally.
Backed by angel investors and supported by accelerator programmes Baltic Ventures and FinTech Wales, Chest plans to raise further funding to accelerate growth. Its model is designed to be simple, accessible and entertaining. Users will be able to track progress in a way more familiar to social media platforms — comparing themselves with peers and receiving updates as easily as they might check a credit score.
The co-founders say this entertainment element is critical to engagement. Research shows that more than two-thirds (70%) of Gen Z and millennials are more likely to use brands and products that entertain them, compared with just over half of all adults.
Building trust in pensions
Chest also aims to address the trust deficit that has long dogged the pensions sector. When asked what would make them feel more confident about retirement savings, 43% of younger respondents said they wanted clearer guidance on how much money they will need, while nearly a third (28%) wanted more frequent updates on whether they are on track.
Transparency and communication will therefore be central to Chest’s app. The founders are betting that by providing real-time, personalised insights alongside the cashback-to-pension pipeline, they can rebuild confidence and make pensions feel relevant to younger savers.
Chest is launching into a market where the stakes are high. Government figures suggest that nearly three-quarters of the population will not be able to maintain their current lifestyle in retirement. The UK Pensions Commission, revived this year, has been examining why today’s younger workers are on track to be poorer in old age than today’s pensioners.
Against this backdrop, the ability to harness existing consumer behaviour around rewards and loyalty programmes could prove transformative. If successful, Chest’s model could change the way an entire generation saves — and potentially ease the looming pensions crisis.
As Adam put it: “Our amazing customers have already shown us there’s a huge appetite for something different. Chest isn’t about asking young people to find spare cash they don’t have — it’s about helping them turn the rewards they’re already earning into a better financial future.”
