On the go: The Department for Work and Pensions has announced a £5mn expansion of the mid-life MOT initiative, but the project is considered to “barely touch the sides” by an industry expert.
The aim of the mid-life MOT is to improve understanding for savers in their forties, fifties and sixties of their finances, health and careers, while also supporting employers in helping their employees plan for their lives after work.
The expansion is part of a wider £22mn package, created to support the over-fifties in finding new careers and earn more money by bringing in specialist support and increasing time with work coaches, the DWP said.
It will see mid-life MOTs delivered online, in the private sector and through the DWP’s national network of jobcentres.
Furthermore, a face-to-face mid-life MOT programme will be trialled through employers with employees in three areas: the North East of England, Cornwall and Devon, and East Anglia.
In June, the DWP launched a tender for suppliers to help deliver midlife MOTs as part of the programme’s pilot stage.
Pensions minister Guy Opperman said the current expansion will “give people the tools they need to assess where they currently are and how they can get to where they want to be, whether it’s that next career move or ensuring they’re on track for the retirement they want”.
Despite praising the initiative, Becky O’Connor, Interactive Investor’s head of pensions and savings, said the £5mn expansion “will barely touch the sides if this is to become a mainstream thing”.
She said: “Although the definition of ‘mid-life’ brings this initiative to people earlier in life and that’s helpful, if someone is way behind with long-term financial planning at this point, with the best will in the world it’s going to be hard to play catch-up.”
While welcoming the additional support for older workers, O’Connor highlighted the issue of adequate roles for older people who need or want to continue to work, “which is increasingly a social priority, particularly for those with inadequate pension provision”.
In January 2022, the Work and Pensions Committee recommended that the Money and Pensions Service produces a “guidance service”, potentially through the midlife MOT, to support savers by using the data available through pensions dashboards.
In March 2022, Opperman cited the mid-life MOT initiative as he appealed to the pensions industry for support.
