Savers ‘finding gaps and mistakes in pensions information’

Pension savers are struggling to track down and understand their retirement pots, according to Which?

The consumer group wants to see the urgent introduction of a “pensions dashboard” where people would be able to see information about all their retirement pots online, in one place.

Which? asked 12 volunteers to track down key pieces of information about each of their 38 pension schemes.

Nine of the 12 encountered gaps in their data, while three found all the requested information through paper statements, online accounts and phone calls.

Some volunteers struggled to find the value of their pension or projected entitlement under a defined benefit (DB) scheme. One was told by their provider that they had to wait 40 working days for a new statement to give the information.

Some struggled to find out about pension charges and their provider’s investment strategy. Which? also found that information was not always correct.

One 36-year-old woman from London had a shock when she started looking at her pension with a former employer - a Us-based marketing agency using a UK payroll provider.

For eight months, pension payments had been deducted from her salary, but neither this money nor any company contributions had reached her pension account, Which? said.

Other volunteers found that pension company mergers and takeovers can add to the sense of confusion.

In a separate survey, Which? asked more than 300 members across the UK whether they would use a pensions dashboard to manage their retirement and what they most wanted to see included in it. More than three-quarters (77 per cent) said they would be likely to use the dashboard.

Among the top requests for inclusion was an update on the state pension, with nearly three-quarters (74 per cent) wanting to know how much they would get at state pension age.

Nearly two-thirds (62 per cent) were keen to have a projection of their future retirement income, while more than half (55 per cent) wanted to know their current pension value and a similar number (54 per cent) wanted to see charges.

The Pension Schemes Bill legislates for the introduction of a pensions dashboard. The project was first announced in the 2016 Budget.

Which? said the dashboard should publish key information such as charges and income projection figures.