The planned introduction of Pensions Dashboards in 2026 could mean losses from poor pension transfers costing savers over £2bn if they unwittingly move to higher charging plans, a provider has warned.

The People’s Partnership, which provides The People’s Pension workplace scheme, cautions that the dashboards could lead to an increase in ‘poorly informed’ transfers.

The company says the dashboards will be a "ticking timebomb for further detrimental pensions transfers" unless steps are taken to highlight to users key transfer comparators such as fees and their impact.

Pension savers moved into higher charging pensions could pay over £2 billion more by the end of the decade, the firm warns.

The People’s Pension, which serves 6.8m customers, has reviewed new data from its Pension Transfer Outcomes Index which revealed that losses from savers transferring into higher charging pensions were expected to continue to rise.

The trend is likely to accelerate, the firm says, once Pensions Dashboards, which will give people a hub to monitor all of their pensions, go live, as planned, in two years on 31 October 2026.

People’s Partnership research found that more than 4 in 10 pension savers (42%) say they would be likely to use a pensions dashboard to move their pension from one company to another.

The company predicts that this will mean an increase in poorly-informed pension transfer decisions as savers grapple with the all the options and data available to them.

It says this will leave “many savers vulnerable to making choices that could negatively impact their financial future.”

The organisation is calling for the incoming FCA Value for Money metrics to be clearly displayed on Pensions Dashboards to allow people to compare their pensions based on the fees they are paying.

It says this is supported by its research, which found that a sensible way to compare overall value for money provided by each of their pensions is one of the features over 4 in 10 (43%) pension savers most want to see on a dashboard. Over half of savers (53%) also want a projection for their pension pot in retirement.

YouGov research also revealed that a fifth of pension savers (21%) have lost track of a pension. Half (50%) said they were likely to use a Pensions Dashboard to find missing pensions, meaning millions could now take action on pensions previously lost to them.

Patrick Heath-Lay, CEO of People’s Partnership, said: “Pensions dashboards are a ticking timebomb for further detrimental pension transfers. 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. 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. 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, as we know that people don’t shop around for a pension transfer.

“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. 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.”

People’s Partnership has previously revealed that nearly three quarters (72%) of people who had recently transferred a pension did not know exactly what the fees were for their new or old pension, and one in 10 (11%) did not think their new pension had any fees.

• Data is from YouGov Plc. Total sample size was 2074 adults. Fieldwork was undertaken between 13 - 16 September. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).