A new UK fintech startup, Chest, is preparing to launch its pension app designed to help young people turn cashback from everyday purchases into future retirement savings. From Amazon to Starbucks, Tesco, and Sainsbury’s, users will be able to channel their rewards and loyalty cashback directly into a Chest pension, along with optional automated savings.
The app is aimed at Gen Z and millennials, offering a fresh approach to retirement planning. Traditional pensions often feel outdated for digitally savvy, mobile-first generations. Chest is among the first fintech challengers to reinvent pensions in a way that aligns with modern spending habits.
Younger Generations Facing Pension Anxiety
According to new consumer research by Chest, financial pressures are holding back younger people from saving for retirement. Nearly 2 in 5 (39%) of Gen Z and millennials who are not retired say they cannot afford to save for a pension or have more immediate priorities such as buying a home, starting a family, or getting married. This figure compares with 34% of Generation X (ages 44–60) who face similar challenges.
The study also revealed that 35% of younger adults feel anxious or uncertain about their retirement savings. Only 29% reported confidence in their pension future, while 23% said they feel hopeful.
At the same time, under-45s are frequent users of rewards, loyalty schemes, and cashback offers. Almost 72% of Gen Z and millennials use cashback programs monthly or prefer brands that provide incentives—higher than the 66% of Gen X and 70% of all adults surveyed.
On average, 67% of young adults save between £6 and £40 per month through discounts, loyalty points, and cashback programs (63% across all age groups). According to Chest, if a 27-year-old invested just £30 per month (£1 per day) from loyalty rewards into a pension, they could generate over £100,000 in additional retirement savings.
Founders on Why Chest Matters
Co-founder Ali Adam (34) explained:
“Even with above-average salaries, many young people simply can’t spare extra income for pensions due to the high cost of living. There’s also a lack of trust in traditional pension providers. Chest solves this by using money we already earn from everyday spending, like coffee or grocery shopping, to build our retirement future.”
Fellow co-founder Jason Murphy (34) added:
“Young people are prioritizing immediate expenses over long-term savings, which could have serious consequences for their retirement and increase pressure on future governments. Chest is the first British startup designed to modernize pensions with an innovative, accessible approach.”
Chest’s Growth Plans
Chest aims to become one of the UK’s leading personal pension providers, with plans to expand internationally. The startup has already secured backing from angel investors and support from the Baltic Ventures and FinTech Wales accelerator programs. Additional fundraising rounds are planned to grow its user base.
Key Research Insights
- Better pension engagement needed: 43% of Gen Z and millennials want to know exactly how much they need for a comfortable retirement, while 28% want regular updates on their progress.
- Entertainment matters: 70% of young adults prefer brands and apps that entertain them, compared with just 52% of all adults. Chest plans to make checking pension progress as engaging as checking a credit score.
- Social influence: 1 in 3 young people now turn to social media and influencers for financial advice.
- Optimism gap: Despite financial struggles, 29% of Gen Z and millennials believe they are on track for retirement—higher than the national average of 15% confidence.
- Retirement risk: According to the Government’s Pensions Commission, 74% of UK adults will not be able to afford their current lifestyle in retirement.
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