One in five adults claim the pensions dashboard will help them save more for retirement, according to a new survey.
But the survey shows savers were reluctant to embrace more tech-based options. Almost two thirds of those surveyed say they would not trust robo-advice for retirement planning.
The survey, from pensions consultants LCP and YouGov, says technology can unlock greater engagement on retirement savings, but that this ‘tech revolution’ must come in stages.
Not surprisingly millennials were less sceptical about using technology to help them plan for retirement.
Overall, almost a third of people (28 per cent) surveyed said they would trust this advice given to them by a robot. But in the 18-24 age bracket, this figure climbed to 45 per cent.
In contrast, there was far less trust among older workers. The survey showed only a fifth of respondents aged 55 plus said they would trust robo-advice on retirement planning and savings advice;with 67 per cent saying they would not trust robo-advice.
However, this LCP survey found support for the pensions dashboard was not age-dependant, with similar levels of interest from those starting and approaching the end of their working lives.
This week the secretary of state for work & pensions, Esther McVey, reiterated her support for this dashboard initiative at the Conservative Party Conference. She said she hoped the dashboard would allow people to view all their pension pots in one place, including state pension and defined benefit schemes.
LCP senior partner Bob Scott says: “Technology continues to fundamentally transform nearly every aspect of the world we live in, and clearly that’s no different when it comes to some of the ways in which we plan financially for retirement.
“There may be some scepticism around innovations such as robo-advisers, but the survey results indicate that younger generations appear ready to embrace the power of technology when it comes to financial management and retirement savings.
“Advisers and providers therefore have an incentive to harness the benefits of new technology in order to cater for the next generation of savers and retirees.”
He adds: “More immediately, the prospect of the long-awaited pensions dashboard finally coming to life is welcome news.
“With a sizable number of adults saying that it would help them to save more, it could prove to be a compelling case study of just how powerful the application of technology can be when it comes to making retirement saving easier – and more universal – than ever before.”
