Savers to track pension on digital ‘dashboard’
A DIGITAL ‘“dashboard” which makes it easier for savers to track their pensions will help “transform retirement planning”, Theresa May has declared.
The Prime Minister said the revolutionary online site would ensure that millions of people have a more secure retirement.
She said the first dashboard is due to launch next year and will allow users to check their pension pots easily on a smartphone, tablet or computer.
Their entitlement to the state pension will also be recorded, meaning that savers will be able to see details of all their post-employment finances in one place for the first time. It can also help people decide if they need to be paying more into their pensions and even find “lost” savings.
More than 25 per cent of people aged 55 and over, who have yet to retire, say they do not know the size of their pension pot. Most workers with a defined contribution pension – 80 per cent – admit they have given little thought to how much they will need to live on when they retire.
Mrs May said: “This Government is committed to helping people plan for their future, and making sure they can look forward to a more secure retirement that they’ve worked all their lives for.
“We’ve already made huge steps forward with millions of people now saving for their retirement thanks to the automatic enrolment scheme, but it needs to be easier for people to be able to make informed choices on their pension pots.
“That’s why bringing pensions online will transform retirement planning – giving people straightforward access to all their pension information in one single place. I welcome the industry’s commitment to make this new technology a reality.”
The dashboard, a cross-industry initiative managed by the Association of British Insurers (ABI), has so far drawn on the input of the Treasury and 16 pension firms.
It has also involved six tech companies, the industry’s regulators and several independent experts.
Guy Opperman, Minister for Pensions and Financial Inclusion, said: “Pensions dashboards are another major milestone in our radical pension reforms, harnessing innovative technology to benefit savers. Bringing pensions information into the digital age has the potential to revolutionise the way we all think about and plan for later life. People, young and old, should have all the help they need to get ready for retirement and maximise their pension incomes.”
Yvonne Braun, of the ABI, said: “Dashboards will help reunite people with an estimated £20billion in lost pensions money.
“We’ve been working hard for more than two years with our members and partners to lay the groundwork but there’s a huge amount still to do.”