Pension dashboards will need to be offered by providers across the public and private sectors if they are to be successful in encouraging savers of all generations to engage with their pensions, according to the Association of British Insurers (ABI).
A survey by the ABI, published today (February 27), found almost one in five savers (19 per cent out of 2,008 consumers surveyed) chose not to access information about their pensions.
Also, the ways in which savers currently interact with their pensions varies across the generations with people using a mix of digital, post and phone.
The ABI has warned that if the government’s pensions dashboard project is to be a success then dashboards must be made available across a wide range of providers to allow different generations to choose their own desired platform.
The ABI found that 18-34-year-olds would prefer their pension pot to be shown on a mobile banking app, compared with 35-54-year-olds, who preferred online banking, and 55 and overs, who would want to see the dashboard appear on their pension provider's website.
As a whole 20 per cent of those surveyed would be more comfortable accessing their pension information through a government service than a private service, while 49 per cent of people preferred doing it via their pension provider.
Rob Yuille, assistant director and head of long-term savings at the ABI, said: “People need support to engage with their pensions to make sure their retirement lives up to their expectations. Pensions dashboards will be critical to achieving this.
“To make it easier for people to engage, both government guidance services and private companies, like pension providers and banks, need to be able to offer pension dashboards.
“Employers, charities and trade unions could also provide these services, so that people can access the information wherever is comfortable and convenient for them.”
Andrew Tully, technical director at Canada Life, said: “A lack of engagement in pensions and retirement planning more generally is a big challenge for all stakeholders to address. Creating far higher levels of engagement and a sense of personal ownership will be critical to the on-going success of auto enrolment and support better levels of saving more generally.
“The launch of dashboards, producing better information and guidance should be seen as the first steps towards seeking proper regulated financial advice.”
A pension dashboard is a digital interface that allows savers to see all their lifetime pension savings in one place, with the data being retrieved directly from providers and updated in real time.
The pension dashboard project was first announced in the 2016 Budget with the government pledging to ensure the industry designed, funded and launched a dashboard.
The government confirmed in 2018 there would be multiple pension dashboards, and suggested the first one, developed by the Money and Pensions Service, would be ready to launch in 2019.
But no dashboard has yet been launched after Brexit and a general election delayed the Pensions Schemes Bill, which will introduce rules on pension dashboards.
The Pension Schemes Bill is currently making its way through the House of Lords and reached committee stage yesterday afternoon (February 26), where the Lords discussed further amendments.
It is expected to reach the House of Commons by Easter.
amy.austin@ft.com
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