Workplace pensions startup Compound raises £500K

Compound, a next-generation workplace pension provider for growing businesses, has raised £500,000 to take on legacy giants like NEST and transform a market where 96% of employers report problems with their provider.

Monzo
 The round includes investment from Fuel Ventures and special advisor Paul Rippon, co-founder of Monzo.
 
 The scale of the opportunity is huge. Workplace pension contributions are set to grow to £480 billion by 2033, yet £50 billion of pensions are already lost. Ninety-four percent of companies face problems with their provider, opt-out rates in the UK sit at 10 — rising to 15% for millennials and 17% for Gen Z — and user experience remains stuck in the past. Auto-enrolment has brought millions into pensions, but poor technology and low engagement mean employees miss out on the extraordinary tax breaks and long-term growth these products can deliver, whilst financial anxiety is running wild across the UK.
 
 Founded by cousins Dan and Richard Klin, Compound is building the pension platform businesses and employees actually want to use. The company has launched their workplace pension auto-enrolment product that integrates seamlessly with accounting and payroll software to make pensions painless to manage.
 
 Dan Klin, Co-founder of Compound, said:“Companies spend too much time and money on pensions without seeing an ROI, this is where Compound comes in”.
 
 Compound also gives individuals the Compound App, combining a fully digital find and combine pension tool alongside industry leading UX.
 
 Instead of simply building another legacy alternative, Compound is already proving its superiority with real-world data in its early growth phase. By completely removing the friction of pension management for businesses and finally making wealth visible for employees, the platform has achieved an industry-beating employee opt-out rate of just 1.6%.
 
 Richard Klin, Co-founder of Compound, explains: “Most pension opt-outs aren’t people rejecting free money; they’re people rejecting a system they don’t understand and don’t trust. We built Compound to fix a market that is fundamentally broken for both employers and employees. Seeing our opt-out rate sit at just 1.6% is the ultimate proof that when you replace clunky, manual portals with seamless automation and a beautifully designed app, people stop ignoring their future.”
 
 Mark Pearson, Managing Partner of Fuel Ventures, said: “Compound is tackling a huge market with real problems that incumbents have failed to fix. Their combination of deep sector understanding and a product-first approach makes them perfectly placed to disrupt this space and deliver better outcomes for businesses and employees.”
 
 Dan adds: “Pensions aren’t boring, they’re one of the most powerful wealth-building tools we have. We’re here to strip away the jargon, fix the admin nightmare and make pensions something employees are excited about.”