Retirement savers want a target to aim for rather than a guestimate of the cash they will need for a comfortable life once they give up work.
A national retirement income that offers a guide amount of money needed in savings would be welcomed by workers planning for retirement, says research by trade body the Pension and Lifetime Savings Association (PLSA).
The recommendation in the association’s report Hitting the Target – Delivering better retirement options explains that the government’s proposed pension dashboard is the ideal opportunity for setting the national retirement income.
The PLSA feels the income amount will set a target for savers and encourage people to save more as they could see the dashboard will monitor any shortfall.
8 out of 10 want help with saving
Graham Vidler, Director of External Affairs at the Pensions and Lifetime Savings Association, said: “The pensions dashboard project is a ground-breaking initiative and we are delighted to be involved in an industry wide project that will offer so many benefits for savers. The level of collaboration has been impressive and shows how keen the pensions industry is to help savers.
“More than three-quarters of people (78%) admit they are not sure or do not know where to look to tell if they are on track with their retirement savings. The pensions dashboard will help to manage this very real problem and help savers to feel more in control and engaged with their pension savings.”
The PLSA is backing the development of the digital dashboard as a huge stride forward in helping retirement savers – but calls for new laws to force financial firms to deliver up the necessary data.
Pension dashboard is an opportunity for savers
The dashboard will let retirement savers see all their pensions and income projections in one place.
“Research commissioned for the pension dashboard project showed that trust towards financial services was low amongst the public. To enable savers to get the most out of their pension savings it is crucial that an impartial organisation that savers feel they can trust, such as the Single Financial Guidance Body, offers a pensions dashboard,” said Vidler.
“The dashboard has the potential to bring pensions into the digital age; and we look forward to working with the group to make the current prototype a reality. The dashboard will be a success if it is consumer-focussed and well regulated.”