The introduction of pensions dashboards could see losses from pension transfers “soar” beyond £2bn before the end of the decade, research from People’s Partnership has suggested.

The provider argued that "urgent" action is needed to stop people from losing thousands of pounds, after data from its Pension Transfer Outcomes Index suggested that losses from savers transferring into higher charging pensions will continue to rise.

The provider warned that this trend is also set to accelerate once pensions dashboards go live in two years’ time on 31 October 2026, arguing that dashboards are a "ticking timebomb for further detrimental pension transfers".

In particular, the research found that nearly half (42 per cent) of pension savers said they would be likely to use a pensions dashboard to move their pension from one company to another.

However, People's Partnership said that an increase in transfers will lead to an increase in poorly informed pension transfer decisions, given the difficulties people face comparing their options, leaving many savers vulnerable to making choices that could negatively impact their financial future.

In addition to this, the research found that whilst 21 per cent have lost track of a pension, 50 per cent said they are likely to use a pensions dashboard to find any of their missing pensions.

But People's Partnership said that this could see "millions" take action on pensions previously lost to them, which could leave them "thousands of pounds" worse off in retirement.

Given this, it called for the upcoming Value for Money metrics from the Financial Conduct Authority to be "clearly displayed" on pensions dashboards, to allow people to compare their pensions based on the information that matters most, such as the fees they are paying.

This was supported by its research, which found that a simple way to compare the overall value for money provided by each of their pensions is one of the features over 4 in 10 (43 per cent) pension savers most want to see on a dashboard, after a projection for their pension pot in retirement (53 per cent).

“Our research shows that many people find it difficult to navigate and compare their pension options due to overly complex or inconsistent information, leaving them extremely vulnerable in these types of transactions," People’s Partnership CEO, Patrick Heath-Lay, said.

"With the arrival of dashboards, we anticipate this confusion will only intensify, making it even harder for savers to make informed decisions. We are very worried that dashboards will increase poorly informed decisions which lead to big losses over time."

Heath-Lay argued that the risk is particularly severe if providers use dashboards as an opportunity to "aggressively" market the pensions they offer to consumers, without any way to easily compare options.

“It is vital that simple, easy-to-understand comparisons of value for money are on commercial pensions dashboards when they begin to go live in two years’ time, so people don’t fall victim to offers that seem better than they are and make decisions which they later regret," he continued.

"A simple consumer-facing value for money framework should apply to all pensions, not just relatively low-charging workplace options.

"Urgent action is needed to stop people from losing thousands of pounds and having to work for years longer before they can retire.”

This comes after previous research from People’s Partnership found that nearly three quarters (72 per cent) of people who had recently transferred a pension didn’t know exactly what the fees were for their new or old pension, and one in 10 (11 per cent) didn’t think their new pension had any fees.

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