Increased job-switching highlights need for pensions dashboards

Findings that almost three-quarters (73 per cent) of UK workers think changing jobs has become more common illustrates the need for pensions dashboards, according to Aegon.

Research conducted by the pension provider found that two-thirds (66 per cent) of UK workers believed that the concept of a ‘job for life’ was now extinct, compared to just under three in five workers (58 per cent) globally.

Only one in 20 (5 per cent) of UK workers aged 18-34 expected to spend over 20 years with a single employer, compared with almost half (48 per cent) of workers over the age of 55 who either already worked for a single employer, or expected to work for a single employer, for more than two decades.

Aegon warned that this trend “may accelerate even further” due to the impact Covid-19 has had on the job market.

The company also pointed out that increased job-switching could result in workers’ retirement savings comprising of a scattering of different amounts in different employer schemes, which Aegon said reiterated “the need for the delayed pensions dashboard, to ensure people have a full sight of their retirement savings”.

Aegon head of pensions, Kate Smith, said: “As nearly every job comes with a pension, multiple jobs means multiple pension pots to manage and keep track of. Younger generations often forget about their savings, or don’t realise their importance, or worse still don’t even know they have them, which can ultimately lead them to lose touch with valuable pension savings.

“Having an incomplete picture of their pension saving is disastrous when it comes to planning their retirement future.”

Smith commented that dashboards should “dramatically reduce the risk of losing track of pensions from previous jobs”, adding that it was hoped that giving people a complete overview would ensure workers “become more engaged with their pension savings, checking to see if they’re on track for the retirement they aspire to”.

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