Compound, a UK workplace pension provider focused on growing businesses, raised £500k to compete with incumbents such as NEST in a market where 96% of employers report issues with their provider.
Fuel Ventures backed the round, alongside Paul Rippon, Monzo co-founder, who joined as special advisor.
The numbers point to a large gap. Workplace pension contributions are expected to reach £480 bn by 2033. At the same time, £50 bn in pensions already sit lost. Around 94% of companies report problems with providers.
Opt-out rates stand at 10% across the UK, rising to 15% for millennials and 17% for Gen Z. User experience hasn’t kept pace.
Auto-enrolment brought millions into pension schemes. Engagement stayed weak. Poor interfaces and outdated systems still block access to tax benefits and long-term returns.
Financial pressure across the UK adds to the problem, according to Beinsure analysts.
Compound, founded by cousins Dan and Richard Klin, builds a platform aimed at both employers and employees. The company launched an auto-enrolment product which integrates with accounting and payroll systems, reducing manual administration.
Dan Klin said companies spend heavily on pensions without clear return. Compound targets that inefficiency.
Companies spend too much time and money on pensions without seeing an ROI, this is where Compound comes in
Dan Klin, co-founder of Compound
The platform also includes the Compound App for individuals. It offers a digital tool to find and combine pensions, paired with a redesigned user interface.
Early data shows traction. Compound reports an employee opt-out rate of 1.6%, well below industry averages. The company links this to reduced friction in pension management and improved visibility of savings.
Richard Klin said most opt-outs don’t reflect rejection of pension benefits. They reflect distrust and confusion around the system. He said replacing manual processes with automated workflows and a clean app changes user behaviour.
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.
Richard Klin, Co-founder of Compound
“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,” Richard Klin explains.
Fuel Ventures managing partner Mark Pearson said the company addresses a large market where incumbents have failed to resolve persistent issues. He pointed to sector knowledge and product focus as factors behind its position.
Dan Klin added pensions remain one of the strongest tools for long-term wealth building. The company focuses on removing complexity and administrative burden, with the aim of increasing user engagement.
