Lightyear launches ready-made plans for UK investors

KAREN JOY BACUDO

Finance Editor

Lightyear has launched Ready-made Plans in the UK, offering three risk-based investment options.

The plans are available across the platform’s 25 markets and use funds managed by BlackRock and Vanguard. The range is aimed at people who want a simpler route into investing, as well as customers who do not want to build portfolios themselves.

The launch comes as the government begins a campaign to encourage more people in the UK to invest, and as Lightyear’s own research points to low levels of retail participation. According to the company, 21% of Britons keep money in a wallet, coat pocket or bag at home, compared with 15% who hold stocks and shares.

The figures also show that only 6% hold funds or exchange-traded funds. More than half of Britons have cash savings, but many have not moved into market investments.

Three options

The range includes three funds organised by risk appetite: Moderate, Growth and All-World. The Moderate option uses the iShares Moderate Portfolio ETF, while Growth uses the iShares Growth Portfolio ETF. The All-World option uses the Vanguard FTSE All-World ETF.

Customers can set up the plans during onboarding or from the portfolio page, and auto-invest is available. Users can also name their plans. There are no buy or sell fees on the plans, although standard foreign exchange fees apply when investing in euros.

The launch expands a planning feature already offered on the platform. Lightyear previously introduced DIY Plans, which let users group and manage their own holdings. The new product is designed for customers who want a more structured approach.

Lightyear says 60% of its customers prefer simple, passive investing. About half have less than three years’ investing experience, and confidence remains the biggest barrier for many.

That points to a broader challenge for investment platforms seeking to broaden participation beyond experienced market users. For newer investors, the hurdle is often figuring out where to start, while more experienced investors may not want to spend time researching individual funds.

Lightyear was founded in 2020 by Martin Sokk and Mihkel Aamer, early employees at Wise. The business operates from London and Tallinn and has raised USD $58 million from investors including Lightspeed Venture Partners, Mosaic Ventures and Nordic Ninja.

In the UK, the company is regulated by the Financial Conduct Authority. Across Europe, it operates through an Estonian-regulated entity with access to EU and EEA markets.

Wander Rutgers, UK CEO at Lightyear, outlined the market gap the company is trying to address.

“While over half of Brits have cash savings, just 15% have stocks and shares, and only 6% hold funds or ETFs. Our mission is to get more people investing, and to do that we need to create simple, accessible ways into the stock market. Ready-made Plans gives everyone that starting point, backed by BlackRock and Vanguard, without needing to know the difference between an ETF and an index fund to get going.”

“We built DIY Plans for people who want control. Ready-made Plans are for everyone else. Three options. Pick your risk level. Start,” said Rutgers.