Pensions and retirement products are yet to emerge from the “Stone Age” when it comes to online banking technologies, Aviva has reported.
In its latest Real Retirement Report, Aviva found that while 63 per cent of over-75s describe themselves as adopters of new technologies, and 84 per cent of 45-64s manage their banking online, when it comes to retirement finances, technology has made slow and little impact.
While the majority run their day-to-day banking online, only 31 per cent of 45-64s currently manage their pension via newer technologies.
Aviva highlighted that with 85 per cent of 65-74s and 80 per cent of over-75s managing their banking online, and so there is a considerable opportunity for pensions to also adopt these newer systems and “maximise the benefit technology can offer when it comes to retirement planning” it said.
The failure to fully integrate into online systems left 68 per cent of 45-64s claiming that technology is yet to have an impact on their retirement finances.
Although 67 per cent of this age group agree that technology has a positive impact on their financial planning, only 29 per cent felt the same about pensions.
When asked about how much control they have over their finances, only 28 per cent of 45-64s said they feel in complete control of their pensions, compared to 62 per cent who feel in control of their daily banking. Nonetheless, 38 per cent of over-45s who describe themselves as tech adopters are more likely to feel in complete control of their pension in comparison to 29 per cent of ‘non-adopters’ who are reluctant to do so.
Aviva UK Life managing director, consumer platform, Rodney Prezeau, commented: “We’ve long recognised that pensions have been stuck in the Stone Age when it comes to technological innovation, but the industry is increasingly waking up to this fact and taking active steps to improve digital services.
“There is still much more that can be done but it’s important that efforts continue to focus on providing these types of online services. There is a huge opportunity to help savers.
“It is more important than ever that people are saving for their retirement, and an important part of this is making sure savers have access to technology that enables a greater sense of control over their retirement finances and helps them get to grips with this aspect of financial planning,” Prezeau concluded.
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