Over half of savers unlikely to use incomplete dashboard

Over half (54 per cent) of savers say they would be less likely to use a pensions dashboard that contained only partial information on their pension savings, according to new research from AJ Bell.

The research revealed that 65.8 per cent of respondents would like the dashboard to show both how much the pension is worth currently, and what type of income this would translate to upon retirement.

However, while over a third (38 per cent) of respondents thought the dashboard would help them manage their pension better, more than two thirds (67.6 per cent) didn't believe that it would encourage them to actually save more.

Furthermore, just 20 per cent said that the pensions dashboards would encourage them to save more for retirement.

Commenting on the research, AJ Bell senior analyst, Tom Selby, said: “Over the long-term dashboards have the potential to revolutionise retirement saving, helping millions of savers understand how much their pensions are worth, what they might generate as an income in retirement and how they could get a better deal by shopping around.

“However, under plans outlined by the previous administration, the introduction of dashboards will be phased, with schemes not required by law to provide the necessary information for up to four years. As a result, the first versions of dashboards will not show all of people’s retirement pots in one place.

“Over half of respondents to our survey said this would put them off using dashboards, which is unsurprising given many people’s user experience is now driven by slick online banking and financial planning apps. The government will need to be mindful of this as it begins rollout of the first versions of dashboards in 2020."

In November, the government rejected the work and pensions committee recommendation of publishing a timetable by the end of 2019 for the implementation of the dashboard.

Selby added: “Provided early users aren’t terminally turned off dashboards, it is clear there is significant demand for more retirement information and engagement among UK savers.

"It is clear from this that the priority for this government should be testing and building dashboards that work and allow savers to properly engage with all their pension pots.

"While dashboards should be made available at the earliest possible opportunity, rushing to launch half-baked versions would be an unnecessary risk.”

    Share Story:

Recent Stories


Responsible investing
Laura Blows speaks to Standard Life head of investment solutions, Gareth Trainor, about the latest responsible investment trends and developments for providers, pension schemes and their members

ESG and member engagement
Laura Blows speaks to Legal &General Investment Management head of DC, Emma Douglas, and Nest Insight Director of Research and Innovation, Jo Phillips, about member attitudes towards ESG and how this may impact upon pension fund investments

Sovereign bonds and climate change considerations
In Pensions Age's latest podcast, Laura Blows is joined by Hilary Norris, Product Manager, Sustainable Investment, EMEA, FTSE Russell, to discuss sovereign bonds and climate change considerations

Climate Investing
Laura Blows speaks to Aled Jones, Head of Sustainable Investing for Europe at FTSE Russell, and Adam Matthews, Director of Ethics and Engagement for the Church of England Pensions Board, about the role of climate investing within a pension fund portfolio.

Managing volatility
In the latest Pensions Age podcast, Laura Blows speaks to Cambridge Associates head of European pension practice, Alex Koriath, about the Covid-related market volatility and how pension funds can prepare for the challenges ahead

Advertisement