Free pension ‘health checks’ could aid UK savers’ retirement plans
Proposed free pension ‘health checks’ may help under-saving crisis
- A leading think tank, the Social Market Foundation (SMF), alongside M&G, has urged for free "health checks" for pension savers to avert a potential retirement under-savings crisis.
- These proposed checks would be integrated into upcoming pensions dashboards, offering individuals free, personalised guidance sessions when viewing their consolidated pension information.
- The SMF warns that while dashboards will consolidate pension pots, they alone may not resolve widespread low engagement and understanding, as savers might lack the confidence to act on worrying figures.
- Research commissioned by M&G found that 40 per cent of full-time workers with pensions are unaware of their employer's contributions, and 43 per cent have never changed their own contribution levels.
- It is suggested that MoneyHelper, run by the government-backed Money and Pension Service (MaPS), could deliver the initial version of this health-check service.