30th March 2016 at 1:41pm
The concept of the Pensions Dashboard has been thrown around in the press a lot in the past few months. And it made the headlines again in the run up to the Budget, when consumer group Which? called for the Chancellor to introduce a Pensions Dashboard to help educate and engage consumers.
What is a Pensions Dashboard?
A Pensions Dashboard is a platform that lets savers see all their pension pots in one place – ideally it would be highly personalised and would also include their state pension forecast along with a clear schedule for its implementation.
Why do we need one?
According to Which?, almost half of over 50s don’t know the value of their pension while as much as 21% of savers have never even checked how much they’ve saved in their pension. The Pensions Dashboard would provide an opportunity to reach these people and help them better understand their personal retirement situation.
Our very own Head of User Experience and Design, Claire Burns summed up the need for the dashboard with a simple car analogy: ‘If your car just showed you a static speedometer you would never see the potential to accelerate.
A dashboard can display pension figures to a customer, but the real power comes from showing how it can be effective for you and your needs.’
The pension dashboard has been described as a major step forward in helping savers plan for their retirement. The Government has now confirmed it is committed to working with the industry to ensure it is funded and implemented by 2019.
Why stop at a Pensions Dashboard?
According to Standard Life’s Technical Consultancy Manager, Dave Downie:
‘Pensions and retirement income are synonymous with one another. The first thing most people will think about when considering their income in retirement will be their pension. But with the new pension freedoms it isn’t necessarily the first place they should turn to when deciding where to draw their retirement income from.
It is now time to start thinking of savings collectively rather than as separate individual pots…The familiar scenario of using the pension to provide income needs and other savings earmarked for other purposes, perhaps as a future inheritance for the kids or as a rainy day fund, requires a rethink.’
Nowadays people can take their income in later life from a range of sources not just their pension. So let’s take a look at how the pension freedoms have changed the way we save for retirement:
Introducing the Savings Dashboard
A savings dashboard could be a great way of getting people to engage with their pensions and any other assets they have. But don’t wait for the government to build one – contact your providers today and start building a picture of how much you’ve got saved for the retirement you want.
If you have a pension with us, you’ll be able to login or register for our dashboard to get a clear view of your pension plan as well as any other savings products you have with us.
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Laws and tax rules may change in the future. The information here is based on our understanding in March 2016. Personal circumstances also have an impact on tax treatment. Investments can go down as well as up. The information in this blog or any response to comments should not be regarded as financial advice.