Heywood
This article is the second in our three-part pensions dashboards series, created in collaboration with Richard Smith, an independent pensions professional and industry commentator. Richard shares his insights on the emotional journey pensions dashboards will create for members in this article.
In part one, we explored the “birth” of pensions dashboards and an anticipated ripple effect they will have across the industry. This time, the lens shifts from foundations to feelings. What happens when members see all their pensions for the first time, and how can schemes and providers ensure that moment builds confidence rather than confusion?
For Richard, the impact of pensions dashboards goes far beyond compliance. He points to research by the Pensions Policy Institute (PPI) and the Money and Pensions Service (MaPS) that shows consumers are not all alike. A small, engaged group, actively tracks their pensions. But they are the minority; in fact, research suggests this group makes up less than 10 percent of the working age population.
The majority fall into groups categorised by feelings, such as being afraid, complacent, or detached, as well as people who are anxious or disengaged. For them, even the simple step of knowing what pensions they have and seeing an income estimate is a huge win. This illustrates why emotional engagement is the first milestone. Moving members from fear and detachment to awareness and confidence lays the foundation for progress.
ACT in practice
Richard frames the member journey with dashboards around three words: Awareness, Confidence and Trust – ACT. Awareness is achieved the moment members see their pensions in one place. Confidence comes when the values shown feel reliable and understandable. Trust follows when members believe the system and their schemes are working in their interests.
But ACT is not a one-off event. It is a progression, and it depends heavily on data. As Richard put it, “if a pension value looks wrong, out of date or inconsistent, confidence is undermined before it can take root.” This is why he believes dashboards readiness is inseparable from data readiness.
Lost pots and the first step to confidence
Reconnecting members with lost pensions is where many will begin their journey. Richard highlights this as the essential “job one” for dashboards. “It doesn’t matter what value data you plan to send if the system can’t connect someone with their pension. Job one is letting the pots be found,” he explains.
The scale of the problem is significant. Only around one in 25 people notify their scheme when they move house, leaving millions of records with outdated addresses. Heywood's Pension Pulse research also highlighted that nearly 10% of addresses held by schemes are wrong. There’s potential for this to translate into a vast pool of lost pensions, each one representing money members may not even realise they have.
For the highly engaged minority, dashboards will add convenience. For the majority, the real breakthrough will be simply seeing all their pensions, in one place, for the first time. Even a list of providers and contact details represents a step-change in clarity. From there, accurate Value Data can begin to build confidence, and trust can grow – the ACT framework in motion.
The “help” gap looms large
The pensions dashboards will show members what they have, but they will not tell them what to do with it. For many, this could be the point where anxiety returns.
This is the “help” gap. The risk that members see their pensions but lack the guidance to interpret or act on them. Without proactive and engaging communications, such as video-based personalised explainer avatars, members could misinterpret values, underestimate what they need for retirement, or chase options that may not suit their circumstances. Schemes, providers and policymakers must start thinking now about how to signpost members to the right information and guidance.
Examples from overseas underline this point. In the Netherlands, around a quarter of the eligible population used the service in its first year, showing how quickly behaviour can change once visibility is offered. Sweden’s experience has also demonstrated that trust in dashboards depends on members seeing clear and reliable values. Both cases illustrate that emotional engagement must be matched with accurate data and effective support.
The human side of readiness
For most members, pensions dashboards will trigger an emotional response. For many, it will be the first time they truly see their pensions, and a total estimated retirement income, laid out clearly in front of them. For schemes and providers, the challenge is to ensure that what members see builds confidence rather than confusion.
As Richard reminds us, the journey begins with ACT – awareness, confidence and trust. Dashboards can deliver awareness overnight. Confidence and trust will take longer, and they depend on accurate data, clear communication and thoughtful support.
In part three, we will look further at dashboards and the future of digital pensions journeys, asking how they might evolve over the next decade to become part of mainstream financial decision-making.
We would like to thank Richard for contributing to this series.
You can read Richard's blog on his website dashboardideas.co.uk.
