Pensions dashboard essential in helping consumers save enough for retirement

The pensions dashboard could be the single most effective tool in helping consumers to achieve an adequate retirement income. That’s according the latest report, ‘Retirement adequacy: an open goal’, from the Institute and Faculty of Actuaries (IFoA). Recent reforms in the pensions industry mean that individuals will have to take increasing responsibility for their retirement saving. They will need as much support as possible to understand how their current savings choices will impact the sort of life they aspire to when they retire.

Marjorie Ngwenya, Immediate Past President, IFoA, said:

“The pensions dashboard is an open goal for the government. We urge the Department for Work and Pensions to stick with its commitment to create this much-needed tool for consumers. The dashboard, which will allow individuals to see all of their pension pots in one place, has the strong backing of the pensions industry, consumer groups and customers themselves. Given the changing pensions landscape, it’s more important than ever that government continues to work with industry to make this tool a reality.

“Consumers are already having to grapple with a complex pensions environment. The introduction of the Freedom and Choice reforms, and the ongoing shift from defined benefit to defined contribution pensions, has moved the management of risk and responsibility from employer to individual employee.

“The majority of those individuals will have several pensions over their working life. A pensions dashboard is an essential tool to help people understand their financial situation, calculate what kind of lifestyle their retirement income will offer and, at a more basic level, whether they will have enough.

“We would also recommend that a version of the dashboard is housed in a neutral place online, and that it is also able to signpost people to further information and tools to help them plan for retirement. The launch of the new Single Financial Guidance Body provides a perfect opportunity for the government to set out its plan for pensions communication in the UK, and the dashboard should form an integral part of this”.

~ENDS~

Contact:

Sonia Sequeira, Media Relations Manager
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk

Notes to Editor

1. ‘Retirement adequacy: an open goal’. Institute and Faculty of Actuaries Policy Briefing July 2018

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.

Research undertaken by the IFoA is not commercial.  As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest. 

Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.

Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.

Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

The IFoA is available to provide independent expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.