In an ever changing, fast paced, digital landscape and in a culture of high consumer demand; the pensions industry can feel a little backwards. While banks have forged ahead with online and mobile banking, developing apps and tools to help savers manage their money; most pension firms are still largely reliant on more traditional methods such as post for key member communications.
The Pensions Dashboard prototype, announced by Simon Kirby, Economic Secretary to the Treasury today, is a major step forward in attempting to bring the pensions industry into the 21st Century and we’re excited to be part of the project.
The goal is simple – to allow savers to view all their pension pots in one place. And, in doing so, improving understanding and engagement with pensions and pensions products, giving consumers the ability to make more effective and informed decisions about their long term savings.
One of the side effects of auto enrolment will be an increase in the number of pension pots individuals will have when they come to retire. Research we conducted, revealed that three in five (60%) British workers over the age of 21 have had at least four jobs in their lifetime, with over one in ten (12%) over 55s having worked at more than ten different places.
As a result, over half (56%) have more than one pension pot and nearly one in ten (8%) have four or more – a figure which rises to one in four (25%) for those aged over 55.
When it comes to keeping track of these pension pots, there is room for improvement, as almost a third (32%) admit they don’t know where all their pension pots are kept. With auto enrolment, a tough job will become even tougher!
While there’s a lot of work to be done, and many challenges remain, the benefits of the Dashboard are immediately obvious and there’s a huge amount of will in the industry to make the project a success.