Scottish Widows  

Lloyds integrates Scottish Widows pensions in online banking

Lloyds integrates Scottish Widows pensions in online banking

Lloyds Bank customers with a Scottish Widows pension will be able to see the value of their pot when they log into their bank account online.

Launched in January, this pilot has now reached 600,000 people, 300,000 with workplace savings and an equal amount with personal pensions.

Robert Cochran, retirement expert at Scottish Widows, said the provider’s goal was to drive engagement among savers.

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The next step will be to extend the project to mobile app users in January, which is expected to "make a massive difference in engagement", as these customers have more regular interaction with their bank account, he said.

He said: "We know that when people get to 55 they move their pension into their bank account, because they think the money in a pension company belongs to the provider, whereas the money in the bank account belongs to them.

"So, we are trying to change that dynamic by letting people see their pension next to their bank account, so that it looks and feels that money belongs to them."

Mr Cochran explained the number one question people asked was how much money they had in their pension.

"So, if we can answer that for them it’s fantastic," he noted.

From the 400,000 savers with both a Lloyds bank account and a Scottish Widows workplace policy, 100,000 don't do internet banking.

But the bank’s staff have the information in iPads which they can show customers, Mr Cochran explained.

Until now, this integration project has led almost 1,000 people to consolidate their pensions, by bringing in other small pensions from elsewhere, despite no encouragement from the provider for customers to do this, Mr Cochran revealed.

About 9 per cent of people that see their pension on their online bank account then click to see their fund holdings, he said. Customers can also view their contributions, and there is other support available, he added.

Mr Cochran predicts that in the future a link to the pension dashboard could be included, since people want to see their pensions all in one place.

The project, which is due to launch in 2019, aims to allow savers to see all of their retirement pots in one place at the same time, giving them greater awareness of their assets and how to plan for their retirement.

Earlier this month, the Department for Work and Pensions (DWP) announced the industry would be allowed to develop its own dashboards, alongside a non-commercial service hosted by the single financial guidance body (SGFB). 

Next year Scottish Widows plans to extend the pilot to Zurich customers, as it is still going through the legal process of acquiring the provider’s workplace pension arm, which should be concluded at the end of June.

Lloyds announced the transaction in October 2017, which includes assets under administration of more than £15bn and 500,000 customers.