Concerns have been raised that the government will scale back advertising and communications around the new pensions dashboard due to spending cuts.
Yesterday the Chancellor Rachel Reeves announced a raft of measures to plug a £22 billion hole in the public finances. As part of these cost-saving measures, Reeves announced that the government intends to make £50 million saving from its communications and marketing budget over the next two years.
Pension firms say there are concerned that this could impact the roll out of pensions dashboards, due to go live in 2026.
Aegon head of pensions Kate Smith says: “The Chancellor’s announcement of £50 million in savings on Government communication and marketing budgets over the next two years could jeopardise the success of pension dashboards.
“Effective government-led campaigns are crucial for raising awareness about benefit changes and encouraging positive behavioural shifts. Poor communication can lead to confusion, distress and mistrust, as seen with the State Pension Age equalisation, which left many WASPI women in the dark about when they would receive their State Pension and financially unprepared.
“Pension dashboards, set to ‘go live’ in 2026, have the potential to revolutionise how people manage their pensions by providing a secure, consolidated online view. However, their success hinges on public awareness and understanding. The Government is uniquely positioned to lead and coordinate promotional efforts, much like it did with auto-enrolment. This communication and marketing investment is essential for increasing engagement and ensuring better retirement outcomes. Without it, the adoption of pension dashboards will likely suffer.”