A long-awaited new pensions tool soon to be rolled out will provide a “golden opportunity” for pension savers, an expert has said.
The Government has been working for years on the pensions dashboard, first announced in 2016, which will bring together details about your state pension and private pensions, helping people keep track of their retirement savings.
Mark Pemberthy, benefits consulting leader at Gallagher, said: “The first pension dashboards are due to be launched in late 2025. This will allow individuals to access information on all their pension savings in one place.
“Whilst it will take a few years for all pensions to be visible on the dashboards, it is a golden opportunity for everyone to take stock of their overall pension situation – and maybe be reunited with any lost or forgotten pensions.”
It’s definitely worth checking if you have any lost pensions, with the average lost pot worth £9,470, or £13,620 for those aged 55 to 75.
Information on the Government website about the pensions dashboard scheme states: “Pensions dashboards will allow individuals to see their pensions information, including their state pension, for free in one place online at a time of their choosing.
“Pensions dashboards will also reunite savers with lost or forgotten pensions. The ability to access information easily alongside an increase in individuals’ awareness and understanding of their pension information could also support people with better planning for their retirement.”
Mr Pemberthy pointed to another key date coming up in 2025. He said: “As always, April is a key date for maximising contributions to pensions and ISAs, particularly for those looking to take advantage of tax reliefs before the end of the tax year.
“For those with a windfall or significant amounts to save they shouldn’t forget the ‘carry-forward’ rule, which lets individuals use unused allowances from the previous three years if you are in a position to save more than the annual allowance for 2024/25.”
You can save up to £20,000 each tax year in ISAs while you can pay in up to £60,000 a year into your pensions, or up to the equivalent of your annual earnings.
State pension payments are increasing 4.1 percent next April, lifting the full new state pension from £221.20 a week to £230.30 a week. The full basic state pension will increase from £169.50 a week to £176.45 a week.
The turn of the tax year in April is also an important deadline if you want to pay voluntary National Insurance contributions towards your state pension.
Mr Pemberthy explained: “Currently, you can fill gaps going back to 2006, whereas after April you will only be able to go back by six years.
“You need 35 years of National Insurance credits to get a full new state pension, so it is often not essential to completely fill gaps in your NI record. However, for some people, making additional contributions now could help boost their state pension when the time comes.”
A person typically needs 35 years of contributions to get the full new state pension and 30 years’ worth to get the full basic amount.
