Heads in the sand: Quarter of pension savers never check their pension

New research from Moneyhub has found that almost half (48%) of pension savers aged 16-24 check their workplace pensions at least once a month, likely due to the ease of pension providers’ mobile apps; in contrast, 40% of over 55s say they never check the value of their pension.

• 25% never check their pension, and a further 23% only check once a year
• However, growth of money apps is driving more engagement from young people
• Commercial pensions dashboards could drive better engagement with future finances

 
Savers have their heads in the sand when it comes to their future financial health as a quarter admit to never checking their pensions according to research from Moneyhub, the award-winning data and payments platform built on Open Banking and Open Finance principles.

Moneyhub’s research reflects the historical lack of engagement that savers have had with their pensions, with many only being alerted about their pensions’ value once a year in the provider’s annual statement. Indeed, 23% said they only check the value of their pension(s) annually.

Concerningly, this inertia around pensions is more prominent in the over 55s, with 40% saying they never check the value of their pension and a further 20% only checking the value once a year.

In comparison, younger generations are becoming more engaged with their pension, checking more regularly, likely due to the ease of doing so through the pension provider’s app. 48% of 16-24 year olds and 47% of 25-34 year olds said they check their workplace pension at least once a month.

Evidently technology has a role to play in encouraging engagement with our pensions, particularly as increasing numbers express concern over whether they will have enough for a comfortable retirement and the cost of living drives some to reduce their pension contributions.

Moneyhub points to upcoming pensions dashboards as a key solution to solving the lack of engagement and savings shortfall within the UK. The Government Pensions Dashboard will enable people to find and view all their pensions including their state, workplace and personal pensions. Commercial pensions dashboards will find the same pensions, via the same central search mechanism, but crucially they will also let savers connect to other financial products they use, just like Standard Life’s Money Mindset app.

Recently, Standard Life announced it is strengthening its partnership with Moneyhub with plans to deliver a commercial pensions dashboard. Moneyhub’s fully customisable white label pensions dashboard will be embedded into Standard Life’s existing customer app, which incorporates a financial wellness tool, Money Mindset, which is also powered by Moneyhub’s Open Finance capabilities. It already lets Standard Life’s members connect and see their bank accounts, credit cards, savings, ISAs, loans, mortgages, and property values next to their Standard Life pensions. By having access to a holistic view of their finances, this allows people to make better long-term financial decisions and to support their short and long-term money goals.
 
Mark Horwood- James, MD of Moneyhub Personal Finance Technology comments: “There is evidently a clear need, and a want, from consumers to gain a better understanding of their pensions and more regularly check in with their expected retirement income. Only by staying engaged can you course-correct early enough to make a difference in your later years.

“However, it’s not simply enough to engage more with your pensions, we must look at our finances holistically. Open Finance powered solutions enable customers to better understand all their finances, create lasting savings habits, help switch to better products and find some of their lost pensions. In turn this ensures they have the capacity to save more into their pensions, and make better decisions when it comes to later-life savings. Pensions dashboards when combined with holistic money management tools are a true game changer for the industry and its customers, and at Moneyhub we’re ready to help both today.”