With workers averaging 11 pension pots over their lifetimes, a dashboard gathering all that information into one place could be a game changer.
With the news that Theresa May has given her backing to new pensions dashboards which will enable people to check their future retirement finances on mobile phones and tablets, we’re welcoming steps towards achieving what could be a game-changing improvement to the way people manage their pensions.
Jenni Allen, Managing Director, Which? Money said:
Every dashboard must display all the important information consumers need in a clear and accessible way, allowing them to easily understand their pension savings and the costs involved.
It’s crucial that all schemes are included, alongside the state pension, so that savers are able to make informed decisions about their retirement savings and plan their lives accordingly.
Pension confusion (01/08/2018)
The pensions dashboard would allow people to see all of their pension pots in one place. It could be a vital tool in helping people make informed decision at retirement. And it would be a game changer for the way consumers interact and engage with their pensions savings.
But worryingly, recent reports suggest that the entire project could now be at risk.
Retirement decisions can be one of the most complex decisions that we make in our lives and often the information that we most need is not readily or easily available.
We know that nearly half of those over 50 (47%) are not sure of the value of their pensions savings, and over a third of people (37%) approaching retirement find it difficult to keep track of their pension pots.
We’ve been calling on the Government to swiftly introduce a pensions dashboard to help ensure consumers are making the most of their retirement savings.
As a result of our campaigning, the government committed the pensions industry to deliver the project by 2019 with a feasibility study setting out the direction for the project expected this Summer.
However, ourselves, the pensions industry and other charities have raised serious concerns about reports that the project could be delayed or scrapped completely.
Failing to give the dashboard the greenlight would be a huge missed opportunity to really empower consumers to take control of their financial future.
Even a slight delay could mean thousands of consumers are left without adequate information about one of the most crucial decisions of their lives.
Successfully introducing a pensions dashboard will be vital for everyone who is saving for their retirement. We want a dashboard that is transparent, trustworthy and comprehensive and we need strong leadership from Government to help deliver it.
As more and more people are being auto-enrolled into a workplace pension, it is now more important than ever that the Government remains committed to the dashboard.
We are calling on the Government to stick to its promise and act now to ensure the pensions dashboard fulfils its potential to boost consumer engagement, transform the sector and help people make informed decisions that will guarantee a comfortable retirement.
Do you find it hard to keep track of your pension pot? Are you aware of its value? Do you agree the system is confused and requires reform?