Moneyhub study finds 25% pension neglect, notably among 55+, younger generations more involved, checking monthly with user-friendly apps.
Up to 25% of savers never check their pensions despite mounting financial hardship, according to recent study from Moneyhub, the renowned data and payments platform founded on open banking and open finance principles.
The Moneyhub study shows that savers’ disengagement with their pensions—a tendency that has persisted for years—continues. As a matter of fact, 23% of savings only review their pensions once a year, and the majority of these savers only become part of this group as a result of receiving notifications regarding the value of their pensions from the provider’s annual statement.
Sadly, it was discovered that people 55 and older were more prone to this lethargy regarding pensions, with 40% of them claiming they never check the value of their pension. Twenty percent more people check the worth just once a year.
Younger generations are checking and participating in their pensions more. It may be because their pension providers’ applications make it easier. 48 percent of 16–24-year-olds and 47 percent of 25–34-year-olds check their job pension monthly.
The results emphasise how crucial technology is in promoting involvement with our pensions. This is especially crucial since more and more people are worried about whether they will have enough money for a comfortable retirement and since some are cutting back on their pension contributions due to rising living expenses.
Pension dashboards will address the UK’s poor savings and participation, according to Moneyhub. Through the Government Pensions Dashboard, people may find and view their state, work, and personal pensions. Similar to Standard Life’s Money Mindset app, commercial pension dashboards will let savers connect to other financial products and seek for pensions.
The pension dashboard’s power
Standard Life recently declared that it is extending its collaboration with Moneyhub and intends to provide a dashboard for commercial pensions. The current client app from Standard Life will integrate Moneyhub’s fully customizable white-label pensions dashboard. Money Mindset, a financial wellness tool that leverages Moneyhub’s Open Finance features, is also integrated into the app.
Members of Standard Life can currently connect and view their bank accounts, credit card balances, savings accounts, individual savings accounts, mortgages, loans, and property values alongside their Standard Life pensions. People can support their short- and long-term financial goals and make better long-term financial decisions when they have access to a comprehensive picture of their finances.
“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,” said Mark Horwood-James, MD of Moneyhub personal finance technology. You can only make a course correction early enough to have an impact in your later years if you remain involved.
But we need to take a comprehensive approach to our finances; it’s not enough to just interact with your pensions more. Customers may help move to better products, find part of their lost pensions, establish long-lasting savings habits, and better understand all of their finances with the use of open finance-powered solutions.
Consequently, this guarantees their ability to contribute more to their pensions and make wiser choices regarding their later-life investments. When paired with comprehensive money management tools, pension dashboards truly alter the game for both the industry and its clients, and at Moneyhub, we’re here to support you both right now.
