Chest Pensions launches cashback SIPP to nudge Gen Z into retirement saving

Chest, a new fintech platform, launched on Sept. 15, 2025, offering a self‑invested personal pension that diverts everyday cashback into retirement accounts with the aim of encouraging Generation Z and millennial savers to build long‑term pension pots.

The app‑based service lets users buy e‑gift cards for more than 120 retailers and receive cashback on purchases, which is then paid directly into a Chest SIPP. Cashback rates range from about 1% to 12% depending on the retailer, with the company saying average monthly cashback of £15 is "very achievable." Founders Ali Adam and Jason Murphy said the approach is designed to convert routine spending into micro‑savings that can compound over decades.

Chest’s founders, both former accountants who worked at the so‑called big four firms, said the product is targeted at people under 45 but is available to older savers. "We've found that young people do care about saving for retirement, despite not being able to afford to, or finding it confusing," said Ali Adam, 34. Jason Murphy, Chest's other co‑founder, said the concept was prompted by the question: "What if you could take existing transactions and leverage those for the benefit of further rewards that might not otherwise exist?"

Industry data cited by Chest and consumer groups underscores the challenge the startup seeks to address. Hargreaves Lansdown figures show only about one‑third of Gen Z and millennials are on track with pension savings. Standard Life has warned that delaying retirement saving while young can leave individuals tens of thousands of pounds short of what they might otherwise have accumulated.

Chest combines cashback with behavioural features designed to boost regular saving. The app offers round‑ups of spending, a "no‑spend challenge" that automatically saves a predetermined amount on days when the user makes no purchases, and a gamified "Chest score" that ranks users against peers and flags whether they are likely to meet savings targets. The company also points to existing consumer behaviour: its data suggests 72% of the two youngest adult generations use cashback, reward or loyalty schemes monthly, and that typical cashback earnings on such platforms range between £6 and £40 per month.

Money directed into a Chest SIPP is invested across six options: three default funds and three responsible investment funds. Adam said the standard fund is an equity‑focused FTSE All‑World index tracker. Chest will also offer multi‑asset funds with different equity allocations; while asset allocation in those funds will be actively managed, all six funds are built from passive components, the company said.

Chest is operating as an appointed representative of a larger asset manager, which allows the startup to offer regulated services without holding its own direct FCA authorisation. The founders said the platform's fees are "very competitive with the rest of the investment platform market," and that users can transfer existing SIPPs and old workplace pensions into Chest.

The sums paid into users' pensions via cashback will be small on each transaction, the company acknowledged, but Chest argued the long time horizon for younger savers means micro‑contributions could grow materially through compounding. The firm said grocery vendors typically offer 3%–5% cashback on its e‑gift cards, Amazon sits at about 1%, and certain fashion and travel retailers provide higher rates.

Analysts caution that while cashback into pensions removes a psychological barrier to saving, the approach does not substitute for regular, substantive pension contributions. The fintech’s model relies on users buying e‑gift cards through its platform; cashback depends on retailer agreements and the rate of spending through participating merchants.

Chest said it aims to be a primary pension platform for its target demographic, helping younger savers address long‑term shortfalls while providing the option to consolidate other pension pots. The company framed its strategy as leveraging everyday consumer behaviour — and modest rewards — to create a savings habit that benefits retirement outcomes over time.