A fifth (21%) of respondents believe that the pensions dashboard is the online technology that would most encourage retirement saving, according to research by pensions consultants Lane Clark and Peacock (LCP) and YouGov.
Its survey of 2,008 UK adults also found that 57% of overall respondents would not trust retirement planning and savings guidance from a robo-adviser. However, 45% of respondents aged between 18 and 24 would trust robo-advice for their pension planning; which contrasts with only 19% of respondents aged over 55.
Bob Scott (pictured), senior partner at LCP, said: “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 to be 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 to the next generation of savers and retirees, and to engage these future pensioners at an early age.”
More than one in 10 (13%) of respondents think a smartphone app that made it easier to top up their pension would be most likely to encourage retirement saving; 24% of respondents aged between 18 and 24 agree with, this compared to just 4% of respondents aged 55 and over.
Interest in the pensions dashboard, however, is more universal, with 20% of respondents aged between 18 and 24 believing this online tool will most encourage them to contribute more to their retirement savings. This compares to 26% of those aged between 25 and 34, 22% of respondents aged between 35 and 44, 24% of adults aged between 45 and 54 and 17% of those aged 55 or above.
Scott added: “More immediately, the prospect of the long-awaited pensions dashboard finally coming to life is welcome news, not least because the British public has shown a real appetite for such an innovation. With a [sizeable] number of adults saying that it would help them save more, it could prove to be a compelling case study of just how powerful the application of technology can really be when it comes to making retirement saving easier, and more universal, than ever before.
“The use of technology like the dashboard, coupled with auto-enrolment, has the power to drive not just awareness and interest but, crucially, savings levels. There are very few who think a working dashboard wouldn’t bring considerable benefits, once it gets off the ground.”