Despite Queen Elizabeth’s announcement that “…measures will be brought forward to provide simpler oversight of pension savings”, no further clarity has been provided as to when Brits can expect the Pensions Dashboard to launch.
Now, new research by pension advice specialist, Portafina, has revealed that Brits are struggling to keep track of their pension savings, meaning they could be missing out on thousands of pounds in retirement.
Until the dashboard is launched, Brits are tasked with keeping track of old workplace pensions themselves. When asked how they currently manage old pensions, three-quarters of those surveyed (75%) admitted that they haven’t collated all the details of past pensions so they’re on hand for the future, with more than a third (38%)unable to find their pension paperwork.
With an estimated 1.6 million lost pensions in the UK4 it’s worrying that more than half (56%) of the nation don’t know how to access details of workplace pensions that have been left behind, while one in ten (10%) admit to not knowing if they have any old pensions at all.
A lack of understanding on how auto-enrolment works amongst the nation could be adding to the number of lost pensions. When it comes to moving jobs, three in ten (30%) people wrongly expect their former employer to pass on their workplace pension details to their new employer. Only a quarter (25%) of Brits correctly identified that their new employer would set them up a new workplace pension and that it would be their responsibility to manage old pensions.
When it comes to how much old pensions are worth, three-quarters (76%) of Brits claim they are unaware of the value of their old pensions today. So, it’s unsurprising that two-thirds (65%) of Brits say that they would find it useful to see all their pensions, including those from previous jobs, in one place, as it would make it easier to keep on top of their total value.
While most Brits believe a tool like the Pensions Dashboard will help them to manage their pension savings, a fifth (22%) claim seeing their total pension savings in black and white would make them worry they are not saving enough for the future.
With a quarter (23%)of Brits uncertain whether their pension savings will be enough to maintain the current national living wage when they retire5 what could any delay to the launch of the Pensions Dashboards mean for the nation’s retirement savings?
Jamie Smith-Thompson, Managing Director at Portafina, said: “With the nation struggling to keep on top of valuable old workplace pensions, the Pensions Dashboard can’t come quickly enough.
“While the Queen has made the promising announcement that measures will be brought forward to provide simpler oversight of pension savings, with no government majority to pass a pensions bill, a level of uncertainty continues to surround when exactly Brits can expect the launch of a dashboard.
“The longer the Pensions Dashboard saga drags on, the more people remain in the dark about their pension savings. Until it is resolved, there is a danger that the already staggering amount of lost and unclaimed pensions could continue to rise.
“Lost and unclaimed pensions are only part of the problem for workers who are losing track of their hard-earned savings over the years. Old unmanaged pensions could be suffering from high charges and poor performance. Meaning there could be less than expected in a pension pot at retirement.
“Until the dashboard is launched, it is important that old pensions are reviewed regularly. This is where speaking with a regulated independent financial adviser can help. An adviser can reveal how much your pension is worth now, as well as help you to understand your options. This could include transferring old pensions to a modern scheme that is properly tailored to you, which could make a big difference to the amount you have for your retirement.
“Don’t rush into moving or consolidating old pensions. Pensions often have valuable benefits and guarantees attached to them. And when moving to a new scheme these would be lost. A regulated adviser will let you know whether your pension could be better off in a new scheme or is fine staying where it is.”
|
