One in five would save more with pensions dashboard

One in five would save more with pensions dashboard

One in five people (21 per cent) would save more if they had access to a pensions dashboard, a survey has found.

A study into attitudes to the use of technology in pensions and retirement savings showed widespread support for the government's proposed pensions dashboard, which will show savers all their pension savings in one place, but wariness about robo-advisers.

The research, from pensions consultants LCP and YouGov, found 21 per cent of people were in favour of the dashboard and would be encouraged to save more with it.

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But 57 per cent said they would not trust a robo-adviser to deliver sound pensions and retirement advice.

Although many younger people were keen on the use of artificial intelligence and other forward-thinking technologies as tools to save for later life, the older generation did not appear to share this enthusiasm.

A total of 28 per cent of respondents said they would trust a robot for financial advice, although this view was shared by 45 per cent of 18 to 24 year olds and a mere 19 per cent of over 55s.

The pensions dashboard was welcomed by adults of all ages as a means to help them save for retirement.

Bob Scott, senior partner at LCP, said: "Technology continues to fundamentally transform nearly every aspect of the world we live in, and clearly that’s no different when it comes to some of the ways in which we plan financially for retirement.

"There may be some scepticism around innovations such as robo-advisers, but the survey results indicate that younger generations appear to be ready to embrace the power of technology when it comes to financial management and retirement savings."

He added: "Advisers and providers therefore have an incentive to harness the benefits of new technology in order to cater to the next generation of savers and retirees, and to engage these future pensioners at an early stage."

Tim Morris, from Russell & Co Financial Advisers, believes education is key to the take-up of technology in retirement planning.

He said: "The pensions dashboard was always a good idea, and the fact that 21 per cent of people would actively save more and understand where their pension pots are bears this out.

"It’s unsurprising that robo-advice is less popular. This is an educational matter. It will appeal to people who would like to invest small sums, and would benefit from this cost-effective means of getting some advice."