The chancellor’s plans to make £50m of savings on government communications and marketing over the next two years could “jeopardise" the success of pensions dashboards, Aegon head of pensions, Kate Smith, has argued.

Smith explained that effective government-led campaigns are “crucial” for raising awareness about benefit changes and encouraging “positive” behavioural shifts.

Given this, she argued that poor communication could lead to “confusion, distress and mistrust, as seen with the state pension age equalisation, which left many Women Against State Pension Inequality (WASPI) women in the dark about when they would receive their state pension and financially unprepared”.

“Pension dashboards, set to ‘go live’ in 2026, have the potential to revolutionise how people manage their pensions by providing a secure, consolidated online view,” she added.

“However, their success hinges on public awareness and understanding.

“The government is uniquely positioned to lead and coordinate promotional efforts, much like it did with auto-enrolment.”

Smith argued that this communication and marketing investment was “essential” for increasing engagement and ensuring better retirement outcomes.

“Without it, the adoption of pension dashboards will likely suffer,” she concluded.

The marketing and communication cuts were announced following the new government's audit of public spending, which revealed a ‘£20bn black hole’ in public finances that needs to be plugged.

However, industry experts have suggested that the Chancellor, Rachel Reeves, could also look at reforming pension tax policy to help plug a £20bn ‘black hole’ in public finances.

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