From the blog: The UK has one of the most complex pension systems in the world. In fact, research by MoneyFacts showed that 65 per cent of people of working age don’t know where or how best to save money for retirement.
Following successes by our European counterparts, the government’s solution to this is to introduce a pension dashboard – to allow us to keep track of our pensions online.
The Swedish model, for example, sees information updated regularly, with more than 50 per cent of the eligible population registered and using the dashboard effectively.
Following successes by our European counterparts, the government’s solution to this is to introduce a pension dashboard – to allow us to keep track of our pensions online.
The Swedish model, for example, sees information updated regularly, with more than 50 per cent of the eligible population registered and using the dashboard effectively.
A lack of knowledge about pensions is a real challenge for our society. Our research shows most people don’t understand how much they need to save, or how their decisions will affect their pension.
What would a dashboard look like?
Information from all of an individual’s pension funds should be aggregated and clearly presented, making it easy to see a consolidated view of their pension pot.
The dashboard should be simple, uncluttered and easy to navigate. This will help ensure it is inclusive and accessible for all, including disabled users, which will become increasingly important with an ageing population.
In addition to a simple, intuitive design, the dashboard should provide a prognosis, and offer advice on the implications of wider lifestyle choices and milestones, such as getting married, buying a house, or having a child.
Following a prognosis, the dashboard ought to provide advice on action planning, so users can be proactive about managing their savings.
Reconfiguring DC: The pensions dashboard
The pensions dashboard could be the upgrade the industry needs to take it into the digital age, but it is at risk of being just another expensive neglected technology project.
The terminology of the dashboard should be well-explained and easy to understand. Nothing turns people off more quickly when it comes to financial information than the unnecessary use of jargon.
Data should be easy to digest and provide clear insights to give savers the advice they need and want.
The government, regulators and commercial providers now need to work together to deliver an effective platform, with user-centred design at the core.
This should not only reduce the current complexities associated with pensions, but also rebuild trust in the pensions system and enable people to make better investment choices in the long term.
Shaun Gomm is commercial director of digital user experience agency Sigma
