Consumer group Which? has called for the introduction of a pensions dashboard in next week’s Budget after it found almost half of over 50s do not know the value of their pension.
The organisation said it wants the government to use the Budget to announce plans for a pensions dashboard, so savers can see all their pension pots in one place, alongside their state pension forecast, with a clear timetable for its implementation.
Research it conducted in January found many over-50s may not know enough about their pension to be able to make an informed decision about their retirement.
Providers have backed the call, saying it would be a “major step forward” in helping people plan for their retirement.
Which? found 47% of workers with a personal pension are not confident they know the total amount of money they’ve saved, while a fifth (21%) of savers have never checked how much they have saved in their pension pots.
About a third (37%) of those polled found it difficult to keep track of their pension pots, while one in five (21%) said they would not know how to find out about the details of their pots, Which? said.
The Financial Conduct Authority previously announced it would be working with the government to develop a pensions dashboard in order to address consumer confusion.
But so far there has been no public commitment from the government for further plans, and no timeline for their implementation.
Which? executive director Richard Lloyd said: “Deciding on a retirement income is one of the most complex decisions facing consumers, particularly when it’s so difficult to find how much money you have built up over your working life.
“A pensions dashboard could go a long way to providing people with the information they need to engage with their pensions.”
Better outcomes
The Chartered Insurance Institute said a pensions dashboard, combined with improved professional standards at all levels across the pensions sector, would help deliver better outcomes for consumers.
Head of policy and research Laurence Baxter said: “In our view this dashboard should be implemented and launched in partnership between the pensions sector, the government and consumer bodies, and be promoted as such.”
Aegon head of pensions Kate Smith added: “We’ve been a long-time supporter of a pension dashboard as we believe it has the potential to drive up people’s engagement with their pension savings, something that has long been missing.
“Having the ability for people to see all their pensions, including the State pension, in one place online could be a major step forward in helping people plan for their retirement.”
Provider Zurich suggested a pensions dashboard would also help people understand the tax advantages in pension saving.
Head of corporate propositions Dave Lowe said: “As the recent Budget debate showed, many people don’t realise the valuable benefits of pension tax relief.
“A pensions dashboard could be an effective way to highlight how much tax relief savers have received on their pension contributions.
“By seeing the true value of the government top-up they benefit from, people could be encouraged to save more for their retirement.”
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