Tillit has entered the pensions market with the launch of a self-invested personal pension (SIPP) account, offering savers auto-escalation and practical tools designed to mitigate the pension gender gap.

The new fund aims to help empower employees to take control of their finances, and will be available via select employers across tech, professional services and media, as well as direct to consumers.

Tillit is thought to be the first UK pension provider to offer auto-escalation, allowing members to save more by gradually raising contributions over time.

In addition to this, the new fund is designed to offer practical tools that aim to reduce the pension saving shortfall for members taking parental leave, and to help employees to build their own portfolio.

The scheme was launched after a poll from Tillit found that 59 per cent of employees under 45 want to choose their own pension provider, rather than leaving it to their employer, and 58 per cent want more control over how their pension is invested.

Tillit founder and CEO, Felicia Hjertman, said: “With the ever-growing challenge of retirement affordability and the gender pension chasm, it is crucial that pensions are designed to support all members to make better and more informed decisions with their pension today, and in the future.”

“For example, we already know that contributions levels aren’t high enough but we cannot afford to wait for the government to fix this; this is why auto-escalation is a key feature of our pension.

“Auto-escalation is built on the concept of save more tomorrow, which has been hugely successful in the US, but has never gotten off the ground here in the UK. It’s time we change that.”

The Tillit Pension is not an auto-enrolment (AE) SIPP, although it will be available via employers alongside their AE provider.

Tillit is currently offering its pension with a platform fee of 0.25 per cent per annum. While individual funds fees apply and start at 0.06 per cent pa.

There are no charges on contributions, withdrawals or transfers and as per Tillit's standard fee structure, there are no dealing commission charges.

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