A pensions dashboard would allow savers to view all their lifetime pension savings in one place
A pensions “blind spot” could lead as many as one in five people to retire with smaller savings than expected. Overall, 19 per cent of savers admitted in a poll that they do not review information about their pensions, according to the Association of British Insurers.
The findings come as Parliament prepares to debate the Pensions Schemes Bill, which would legislate for the introduction of a “pensions dashboard” – a digital service allowing savers to see details about all their pension savings in one place.
The Pensions Policy Institute estimates that one in five adults could have lost a pension pot.
Asked where they would be comfortable getting access to their pension information, 20 per cent of people wanted to go through a Government service, while nearly half (49 per cent) said they would prefer to use their pension provider.
Pensions dashboard ‘urgently’ needed
The consumer group Which? is pressing for the “urgent introduction” of a pensions dashboard, claiming that separate research it conducted shows the current system leaves workers struggling to track down and understand their pension pots.
The group tasked 12 volunteers with getting hold of key pieces of information about their pension schemes. Three quarters of the participants encountered gaps in their data, while several discovered “worrying” errors such as missing information.
In an additional survey of 300 people, Which? asked participants whether they would use a pensions dashboard to manage their retirement and what they wanted to see included in it. More than three quarters (77 per cent) said they would be likely to use such a system.
The pensions dashboard project was first announced in the 2016 Budget. It was supposed to be up and running by 2019 but a prototype version will likely only be available in 2021 or later.
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“A pensions dashboard could be a game changer for consumers who have struggled for too long with a complex, fragmented pensions system,” said Gareth Shaw, Head of Money at Which?.
“For the millions of pension savers to get genuine benefit from a dashboard, the Government must use this opportunity to ensure that it delivers all the information consumers need to see, including their charges, income projection figures and state pension entitlement,” he added.
— to inews.co.uk