Fintech start-up Zen Pensions has announced its entry into the Irish pensions market ahead of the introduction of auto-enrolment next month.
The company has also appointed Richard Kelly, the Mercer and Vhi Healthcare veteran and former head of pensions for CBRE in Europe, as chief operating officer.
Zen Pensions offers employers “a simple, transparent and zero-cost way” to provide employee pensions that serves as an alternative to auto-enrolment.
The Irish company has been established with the expressed purpose of disrupting the Irish pensions market with the country’s first fully digital, app-based pension offering.
The Zen Pensions PRSA differs from existing solutions in that employers can onboard employees via an app while complying with existing PRSA requirements.
The product is targeted at the more than 90,000 One-Member-Arrangements (OMAs), such as Small Self-Administered Schemes, which will need to transfer to a retail master trust or PRSA by April 21, 2026.
Zen Pensions has designed the product to streamline the existing pensions experience offered by traditional providers, eliminating paperwork for employees and allowing them to sign up and manage their pension using their phone.
The firm does not charge employers to use its service, and its charging structure for employees involves a single annualised charge that can be easily understood and monitored.
The total expense ratio (TER) for a pension with Zen Pensions is 0.9% or less, and employees are charged a maximum annualised all-in fee of 0.9% of their pension value.
There are no additional contributions, platform or management charges. The charge reduces to 0.8% for fund values over €400,000 and 0.7% for fund values over €1m.
Employees can also maximise tax benefits through Additional Voluntary Contributions (AVCs) paid directly through payroll.
Members can remain in control of their pension and take it with them when changing jobs without any input from their previous employer.
Employees will be able to choose their pension plans, benefit from marginal tax relief (up to 40%) and access their retirement savings from age 50, if retiring from employment.
This compares favourably to auto-enrolment, where employees will have limited choices, fixed contribution rates, a 25% tax relief equivalent and cannot access their pension until they are 66.
Zen Pensions’ product is based on passively managed funds, provided by an Irish-regulated investment manager.
The firm is regulated by the Central Bank of Ireland, and the Zen Pension product has also been approved by the Pensions Authority.
“We are excited to launch Zen Pensions in Ireland. We are a fintech startup and we are seeking to disrupt the market by offering a fully digital pension and far more convenient service that involves zero setup costs for employers and much lower and far more transparent fees for employees,” said Ailish Dooley, CEO of Zen Pensions.
“The pension industry has been the same for years, and customers have had to put up with a clunky, confusing, bureaucratic and overly expensive service.
“We are turning this model on its head and using our unique and innovative technology to make life easier for employers and to empower pension savers.
“Employers can use our system at no cost other than the contributions they wish to make on behalf of their employees. Employees can easily sign up via the app and will have control of their own pension.
“This means they will enjoy the flexibility they need and deserve while paying far lower costs than those currently charged by existing personal pension providers. It’s a win-win for all involved.”
Zen Pensions was co-founded by Dooley, Conor O’Neill, Richard Skinner and Daire O’Brien four years ago and was previously known as Marshmellow until its rebrand last year.
Dooley is a chartered accountant with over 25 years’ experience in financial services, who formerly served as head of operations at Barclaycard International Payments.
Company chair O’Neill is an actuary and former CEO of Canada Life Reinsurance Ireland and managing director of Barclays Insurance in Ireland. He also co-founded spread-betting firm Delta Index.
CTO Skinner is an experienced IT professional specialising in AI and machine learning, while O’Brien is a broadcaster and journalist.
“Traditional pension providers have completely overlooked the reality of how SMEs operate in today’s business environment,” said Skinner.
“We have spoken to employers, and we have used their feedback to create an entire digital ecosystem that makes pension management effortless for them and serves as an alternative to auto-enrolment.
“Our technology connects employers, employees, and pension administration in a seamless digital environment where employers can onboard staff in minutes and maintain compliance.
“We’re not just digitising an old process – we’re completely reimagining how pensions should work in the digital age, building the infrastructure that allows Irish businesses to focus on what they do best. We handle the complexity of modern pension requirements behind the scenes.”
To date, the company has raised over €1.7m in funding, including €300,000 from Enterprise Ireland, and it is part of its High Potential Start-Up (HPSU) programme.
Zen Pensions was previously known as Marshmallow but rebranded in 2024. It has also agreed a strategic partnership with Galway-based insurer Acorn Life DAC for product manufacture.
“I wish to congratulate Zen Pensions, a female led Irish company on today’s milestone announcement,” said Anne Lanigan, head of technology and services at Enterprise Ireland.
“Enterprise Ireland is proud to have supported Zen Pensions at each stage of its journey to date. Today’s announcement will allow Zen Pensions to scale and compete across the pensions sector in Ireland and the EU and bring its innovative product to the next level.”
Photo: (l-r) Ailish Dooley and Conor O’Neill. (Pic: Supplied)
