KBC has unveiled a new digital pension as part of its bank insurance model, offering customers an easy to access and modify retirement savings plan.
The product comes to market after KBC said it would launch a pensions and life insurance offering on a phased basis through a new local branch of its Belgian insurance unit.
Customers can open a personalised pension fund through the KBC app, which allows customers to increase, decrease or pause payments, according to their financial circumstances. The current value of the pension fund can also be viewed through the app, with the details updated once a day.
It has an auto-invest feature, a default investment strategy that focuses on the customer’s retirement age and removing the need to make investment choices.
"We know customers can find pensions confusing and this can negatively affect retirement planning, which is why we've simplified the decision-making process," said John Gethin, Branch Manager, KBC Life and Pensions said.
Research
The digital pension is the result of extensive research and testing among its customers, which revealed a lack of understanding among some customers about pension plans. Although consumers recognised the need to save for retirement, only a third fully understood their options.
The plan is designed to be easy to access, Mr Gethin said, giving control to the customer.
