Making your pensions work for your future

Financial freedom in retirement begins with understanding what you have saved and how those savings could support your future. Yet, for many people, pension savings are spread across several providers, making it difficult to see the complete picture.

Changing jobs, moving house or losing track of paperwork can leave people unsure where their pensions are held or how much they have accumulated. Over time, even relatively small pension pots can grow into valuable retirement savings.

The introduction of pensions dashboards could help address this problem by allowing individuals to find and view information about their pensions in one place.

At DG Financial Services, we believe that understanding your existing arrangements is an important first step towards building a retirement strategy that reflects your income needs, lifestyle and long-term objectives.

What are pensions dashboards?

Pensions dashboards are being developed to help people find and view their pension information securely through an online service.

Rather than contacting several providers individually, users will be able to access information about eligible pension arrangements in one place. This could be particularly valuable for people who have accumulated multiple workplace pensions throughout their careers.

Dashboards are designed to show information about pension entitlements and their potential value at retirement, helping individuals build a clearer picture of their savings.

However, the information available will depend on the relevant pension schemes and the records they hold. A dashboard will not replace financial advice or provide a complete retirement plan.

Its value lies in making pension information more accessible and helping people identify where further review or planning may be needed.

When will pensions dashboards launch?

The UK’s Pensions Dashboards Programme is progressing towards making pension information more accessible.

Pension providers and schemes covered by the regulations must connect to the dashboards system by 31 October 2026. However, this connection deadline is separate from the date when consumers will be able to use the service.

The MoneyHelper Pensions Dashboard is currently expected to become publicly available during the 2027/28 financial year, subject to further testing and government approval.

Until then, individuals can continue contacting their pension providers directly and tracing older arrangements through existing services.

There is no need to delay reviewing your retirement savings while waiting for the new system.

Finding old and forgotten pension pots

Losing track of a pension is easier than many people realise.

Someone who has worked for several employers may have joined different workplace pension schemes over the years. As they move between jobs, older pensions can remain invested without receiving much attention.

Contact details may become outdated, statements can be misplaced, and some arrangements may eventually be forgotten.

Pensions dashboards are intended to make identifying these savings easier, but help is already available.

The government’s Pension Tracing Service can help people locate contact details for previous workplace or personal pension schemes. Although it cannot confirm whether a pension exists or provide its value, it can help reconnect individuals with providers.

Finding an old pension could make a meaningful difference to retirement plans, particularly where contributions were made over several years.

Understanding your existing pensions

Knowing where your pensions are held is useful, but understanding how they work is equally important.

Pension arrangements can differ significantly in their charges, investment options, retirement benefits and guarantees.

For example, a defined contribution pension builds up a fund whose value depends on contributions, investment performance and charges. A defined benefit pension, sometimes called a final salary pension, generally provides a retirement income calculated under the scheme’s rules.

Some older arrangements may also contain valuable benefits that are no longer widely available.

Reviewing your pensions can help establish whether your existing arrangements remain suitable and whether the investments and benefits they provide align with your retirement objectives.

This understanding is particularly important before making decisions about transferring or combining pensions.

Should you consolidate your pensions?

Having several pensions can make retirement savings more difficult to manage. Pension consolidation, which involves transferring one or more arrangements into another, may offer a simpler approach.

Combining pensions can make it easier to monitor savings, review investments and manage retirement planning. Depending on the arrangements involved, it may also offer different investment choices or charges.

However, consolidation is not automatically the best option.

Some pensions include guaranteed annuity rates, protected benefits or other valuable features that could be lost following a transfer. Moving a defined benefit pension can also mean giving up guaranteed retirement income.

Before transferring, it is important to compare the existing arrangements with the proposed alternative, including charges, investment options, guarantees and retirement benefits.

In certain circumstances, specialist regulated advice is required before transferring safeguarded pension benefits.

Sometimes retaining separate pensions may be more appropriate than combining them simply for convenience.

Are your savings on track for retirement?

Finding your pensions and understanding their value can provide a useful starting point, but it does not necessarily tell you whether you are saving enough.

The income your pensions could provide will depend on several factors, including your retirement age, contributions, investment performance, charges and how benefits are eventually taken.

Your spending requirements may also change throughout retirement.

The early years could involve greater expenditure on travel, hobbies and leisure activities, while later life may bring different financial priorities.

Inflation and the possibility of living longer than expected also need to be considered.

Cashflow modelling can help assess how your savings might support different retirement scenarios, including changes in income, expenditure and investment returns.

This can provide a clearer understanding of whether your existing arrangements are likely to support your objectives or whether adjustments may be needed.

Looking beyond your pension savings

Pensions are only one part of most people’s financial picture.

Savings, Individual Savings Accounts (ISAs), investments and property can all contribute to financial security in retirement. Each has different characteristics, levels of accessibility and tax implications.

For example, ISA withdrawals are generally tax-free, while taxable pension withdrawals are normally subject to Income Tax.

Understanding how these assets work together can help determine where retirement income should come from and how to maintain financial flexibility.

For some individuals, retirement planning may also involve providing financial support to children or grandchildren, making it important to consider pensions alongside wider inheritance and estate-planning objectives.

The aim is to develop a coordinated financial strategy rather than treating every pension or investment as a separate decision.

Steps to take before dashboards launch

Although pensions dashboards are not yet publicly available, there are practical steps you can take to improve your understanding of your retirement savings.

• Locate existing pensions: Gather information about current and previous workplace or personal pension arrangements.
• Review pension statements: Check fund values, charges, investment choices and any guarantees or special benefits.
• Assess contributions: Consider whether current pension savings are likely to support your retirement objectives.
• Update personal details: Ensure providers have your current contact information and review beneficiary nominations.
• Consider professional advice: A financial review can help identify whether your existing arrangements remain suitable.

Taking these steps can provide a more complete picture of your retirement savings and highlight areas that may require attention.

How DG Financial Services can help

Pensions dashboards could make retirement information easier to access, but understanding what that information means remains important.

At DG Financial Services, we help clients review their pension arrangements and consider how they fit within their wider financial plans.

This may involve assessing investment strategies, charges, retirement income requirements and whether existing arrangements continue to meet their objectives.

Where pension consolidation is being considered, we can help evaluate the potential advantages and disadvantages before any decisions are made.

Our approach focuses on understanding your financial circumstances and long-term goals rather than recommending changes simply to reduce the number of pension pots you hold.

Take control of your financial future

The introduction of pensions dashboards could provide a valuable opportunity to reconnect with retirement savings and gain a clearer understanding of your financial position.

However, achieving financial freedom involves more than knowing how much you have saved. It requires a plan for how those savings could support your lifestyle throughout retirement.

Whether you have several pension pots from previous employers or simply want greater confidence in your retirement arrangements, reviewing your pensions can be an important first step.

Contact DG Financial Services to discuss your pension savings, review your existing arrangements and explore how they could work together to support your financial future.

THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE. TAX TREATMENT DEPENDS ON INDIVIDUAL CIRCUMSTANCES AND MAY CHANGE. A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55, RISING TO 57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE OR ANOTHER EXCEPTION APPLIES. THE VALUE OF INVESTMENTS AND ANY INCOME FROM THEM CAN GO UP OR DOWN. YOU MAY GET BACK LESS THAN YOU INVEST. PENSION DRAWDOWN INCOME IS NOT GUARANTEED, AND YOUR FUND COULD RUN OUT IF WITHDRAWALS ARE TOO HIGH, INVESTMENT PERFORMANCE IS POOR, OR YOU LIVE LONGER THAN EXPECTED. ACCESSING TAXABLE PENSION BENEFITS MAY TRIGGER THE MONEY PURCHASE ANNUAL ALLOWANCE AND RESTRICT FUTURE PENSION CONTRIBUTIONS.