Consumer magazine Which? is predicting that Chancellor Sajid Javid will give more detail about the introduction of a pensions dashboard in his first Budget in March.
It appears that it is very easy to lose track of pensions over the course of a career when moving from one job to another, with the dashboard intended to make it easier for people to keep track of their retirement savings.
In fact, recent research has found that almost a quarter of people aged under 55 believe they have lost track of one pension pot, with the average amount of money accumulated in a lost pension being £23,000. This means that in the UK alone, there could be £37 billion in unclaimed pensions.
A pensions dashboard could be the answer to these losses, as the dashboard will show all pensions in one place online, dramatically reducing the risk of losing track of pensions from previous jobs. They will also be able to access and manage all their private pension arrangements, including their state pension.
The idea behind the pensions dashboard is that that once people get the complete picture of their accumulated pension pot, they will check if they are on track for the retirement they aspire to and if not, they can take action.
In December the Treasury announced the return of the Pension Schemes Bill through the Queen’s Speech. This policy includes new rules for pensions dashboards and many hope that it will mean the introduction of this useful tool in the near future.