Technological tools to help you plan for your future with pension contributions

According to a recent IFS report, UK workers are not increasing their pension contributions even in the face of changing circumstances. Despite wage increases or mortgage exemptions, only one in 100 private sector workers actively increases their pension contributions in response to a 10 percent wage increase. It is important for people to consider their future financial security and use every opportunity to increase their pension contributions.

Samantha Seaton, CEO of Moneyhubunderscores the ongoing problem of the industry’s lack of involvement in pensions, as people often lack the time, confidence, and knowledge to make informed decisions about their pension that would truly improve their later years.

“Encouraging engagement with our pensions remains a key issue in the industry. Too often people don’t have the time, confidence or knowledge to make informed decisions about their retirement that will truly improve their later years.” she adds: “We all know we need to contribute more, but more often than not, we need a push before we can take action. It is clear that we need more than the occasional letter from our retirees, which many dismiss or do not open, in order to seriously consider our pensions and changes in them.”

“And this is where technology can play a role in improving retirement outcomes. Apps based on Open Banking and Open Finance, such as Moneyhub, not only provide consumers with a holistic view of their finances, but also indicate where improvements can be made. Companies using our AI-powered technology can help their customers by sending them personalized notifications through the app to let them know where they can save on their weekly store, for example, and then offer to transfer the savings to their pensions. Working with partners such as NEST, Aon, Mercer and SEI Investments, we have proven that the pension experience can be improved through technology.”