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.”

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