Pension dashboard must reflect blurred retirement lines

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Pension dashboard must reflect blurred retirement lines

The Dunstan Thomas survey also showed that 29 per cent of the individuals still do not understand pension freedom choices.

In 2015, the government introduced a radical liberalisation of the pension market, known as pension freedoms.

One in 10 baby boomers are leaving the asset selection decision-making entirely to their provider, with a view to buying an annuity from them; while 19 per cent are planning to adjust their portfolio 12-months before decumulation, which may well be too late.

Dunstan Thomas’ survey also sought reaction to the idea of the pensions dashboard, which is due to be introduced by 2019.

The plan behind the pension dashboard is to create the technology to enable savers to see all of their retirement pots in one place at the same time, giving them a greater awareness of their assets and how to plan for their retirement.

HM Treasury is in discussions with the Department for Work & Pensions to make participation in the pensions dashboard compulsory for all schemes and providers.

One in five baby boomers said they would use the dashboard to assess whether they have enough money to achieve their retirement income target.

Some 20 per cent were already in decumulation mode and wanted to work out how much can be drawn monthly out of the income drawdown plan without running out of money too quickly.

According to Adrian Boulding, director of retirement strategy at Dunstan Thomas, these findings confirm “that consumers will not take kindly to a dashboard that does not support post-retirement decumulation decision-making, as well as pre-retirement accumulation and at-retirement decision-making”.

He said: “The line between pre and post-retirement is irreversibly blurred and dashboards must reflect this.”