Savers are falling behind when it comes to their future financial health as a quarter admit to never checking their pensions, research by Moneyhub has found.
The survey, conducted by Censuswide among 1,004 pension savers, reflected 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.
Around 23 per cent said they only check the value of their pension(s) annually.
The research took place between August 2 and 7 and revealed that inertia around pensions is more prominent in the over 55s, with 40 per cent saying they never check the value of their pension and a further 20 per cent 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.
Almost half (48 per cent) of 16-24 year olds and 47 per cent 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 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.
Mark Horwood- James, managing director of Moneyhub Personal Finance Technology, said: “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.”
Horwood-James said 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,” he said.
“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.”
Moneyhub said the upcoming pensions dashboards will be 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.
The dashboard will be embedded into Standard Life’s existing customer app, which incorporates its financial wellness tool, Money Mindset, which is also powered by Moneyhub’s Open Finance capabilities.
