The concept of the Pensions Dashboard is fundamentally sound, but the development and rollout requires much more consumer involvement.
92% of people have not heard of the Government-backed Pensions Dashboard, and over a quarter wrongly think it will provide them with financial advice, according to YouGov research commissioned by evestor.
When asked about what they thought the Pensions Dashboard was intended to do, 61% admitted that they didn’t know it would provide them with access to all their pensions in one place.
27% incorrectly thought the Dashboard will provide them with financial advice on their pension plans, while 19% thought they’ll be able to use it to make deposits into their pensions.
According to Government estimates, people will have 11 different jobs during their careers, meaning they’ll also likely to have 11 different pension plans. It’s believed the Pensions Dashboard, which is due to launch in 2019, will help consumers track down £60 million worth of pension pots.
Anthony Morrow, co-founder of evestor, commented: “The research also revealed that 36% of consumers don’t know the current value of their pensions. This suggests the concept of the Pensions Dashboard is fundamentally sound, but the development and rollout requires much more consumer involvement.
“The lack of consumer awareness and knowledge about the Dashboard shows people aren’t being properly consulted in the creation of a tool that’s supposed to serve their interests. If consumers were being sufficiently involved, they’d be talking about this and there would be much greater knowledge about what it is.
“Industry and Government need to avoid this becoming self-serving and box ticking exercise. The emphasis must be ‘what’s in it for the public’ and not ‘what’s in it for the industry’, otherwise the Dashboard will end-up a flop and a missed opportunity to help savers that need support. More people need to be asked about their pensions challenges and objectives stretched beyond simply helping them access plans. It’s all well and good tracking pensions, but, understandably, most savers don’t know what to do with multiple pots. They need advice now that suits their individual needs and retirement goals.”