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A fifth of UK adults have lost track of multiple pension pots

Pensions-savings-retirement-piggy bank

A fifth of adults in the UK have lost track of one or all of their pension pots, according to research from Aegon.

More than a third think the pensions dashboard will help stop this, however.

The research shows 62 per cent of UK adults have multiple pensions and 39 per cent do not know the total value of their pensions.

The pensions dashboard is set to be launched to consumers in 2019 and providers unveiled a prototype to Government last month.

The dashboard will show a person’s defined contribution, defined benefit and state pension pots all in one place.

Nearly one third (29 per cent) of those surveyed by Aegon think the dashboard will help people save more while 35 per cent of people say the dashboard will help stop savers losing track of their pensions.

Aegon UK pensions head Kate Smith says: “Planning what your retirement will look like without knowing how much money you have to create a retirement income is near impossible. The pension dashboard should greatly simplify the process of finding lost pensions, as well as providing people with an easy way to view all their pension pots, including the state pension, in one place.”

She adds: “However, the dashboard can only be a truly useful tool if all pension schemes and providers are able to adequately digitise and provide the necessary information in a way that the dashboard can display. Otherwise there will be too many missing jigsaw pieces for people to get a clear picture of their savings. The Government must encourage all schemes to ensure their data is ready for the anticipated launch in 2019 and ensure the final product is as useful for customers as it should be.”

The data collected relating to the pensions dashboard was taken from a sample of 2002 adults, while the multiple pension pots data was taken from a sample of 1004 adults.

A Department for Work and Pensions spokesperson said: “We are working closely with the industry on the development of the pensions dashboard to ensure that it will include all the information that consumers need to keep track of their savings.

“The Pension Tracing Service is already available to help people easily track down lost pension pots using just the name of a former employer.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Douglas Baillie 10th April 2017 at 2:25 pm

    The ‘pension dashboard’ will not work, and will be totally useless because there are far too many pension regimes and a huge range of different pension plans. These include hundreds of thousands of old style S226 Retirement Annuities, many with guaranteed annuity rates linked to so-called ‘with profits’ policies, most of which have not declared any bonus whatsoever in the past ten years, and some with negative bonus rates that actually reduce the value of the policy. It is therefore impossible to accurately predict any reliable financial value or pension at any time in the future.
    Add to that the myriad of other pension plans such as: ‘contracted in money purchase’ (CIMP), contracted out money purchase (COMP), EPPs, PPs, Group Personal Pensions, Defined Benefits Plans, Section 32 GMP Buy Out Bonds, All Safeguared Benefits, plus all manner of ‘targeted (but not guaranteed) plans, plus no standard projection rates, and different charging structures (RIY or RIY), and you end up with a hopeless, incomplete picture of no use to anyone.
    Finally: Pension administrators, pension trustees and the life assurance companies all use different methods of current and predictive reporting that will mean it will be Impossible to ever create any form of reliable ‘dashboard’.
    So please stop now before the costs escalate exponentially, and the time wasted runs away well into the future.
    Instead, our industry leaders should be focussing on directing consumers to suitably qualified and authorised advisers with the appropriate FCA permissions and PI Cover who will provide suitable advice and a suitability letter, rather than leaving consumers alone to survive in a sea of uncertainty.

  2. And many of their investment too. Old PEPs, Insurance Bonds and Matured Policies for example.

  3. Having just met with a new client who definately has 9 pension arrangements, maybe 10 or even 11 when his detailed ‘career progression’ research is finished, the headline is probably quite true. The challange for the Pension Dashboard software designers is getting all that information collected from providers/trustees whose “systems functionality ” cannot cope, interpreting it and representing it into a meaningful, accurate and informative format. I’m not a gambler but would back my 10 year old ginger tom’s chances of surviving a trip to the devil’s residence!

  4. The pension industry is very old fashioned….I asked my old employer ( large telco)2 weeks ago via email for an estimate for my pension. Got email confirmation within a day and a general pdf of the pension scheme. Then was told the estimate would take 5 days and would be sent out in the post, by 2nd class mail, I’m still waiting for the estimate to arrive….

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