Over two fifths, (43%) think that the introduction of the Pensions Dashboard will encourage more people to seek professional advice and nearly two thirds, (63%) say that a Pensions Dashboard will help them to advise their clients.
However, it is unclear whether a Pensions Dashboard will be in place by 2019 or if it will cover the many different types of pensions an individual might hold. Many people build up multiple pension rights through a combination of state pensions, workplace pensions and personal pensions. Now, with the advent of automatic enrolment into workplace pensions, millions of new small pension pots will be created as individuals move from job to job and potentially build up a separate pension pot in each employment.
A Pensions Dashboard would allow individuals to see their pensions in one place and could link consumers with lost pension pots from previous employments and importantly, prompt people to seek advice as to whether their pension savings are on track. Yet two thirds, (66%) of the advisers that responded to the poll do not expect that a digital pension dashboard will be in place by 2019.
Fiona Tait, Pensions Specialist at Royal London, said: “There have been several calls to improve the clarity of pensions because they are seen as complex and incomprehensible to savers. Many people are in the dark about what to expect when they retire and at the moment have limited information about their overall pension position. A personalised Pensions Dashboard would really help people to understand what potential pension income they would be able to secure and the sooner this is in place the better.
“It is not surprising that savers find the current systems hard to understand. That is why the role of an impartial adviser is so important, because they do have the expertise and qualifications to help savers, unlike the chief economist at the Bank of England! With all the changes to pensions it is so important that people engage in their pension planning as soon as possible and regularly review how they are doing. Burying their heads in the sand and hoping it all turns out ok in the end is not an option anymore. An impartial adviser can really help to ensure savers get the best outcome.”
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