Ian Bell and Erin Sims: The success of pensions dashboards will depend not just on the technology, but on the protection ecosystem that surrounds it and, crucially, consumer education
What if the tool designed to help you plan your retirement also made you a target for fraud?
The upcoming launch of pensions dashboards, scheduled for March 2026, should mark a significant step forward in financial awareness and retirement planning. These dashboards will allow individuals to view all their pension pots in one place, offering transparency and control. But while this innovation is designed to empower savers, it could also introduce heightened risks, particularly the potential for a rise in poor, unregulated financial advice and scams.
For many, the dashboards will be the first time they have seen a full picture of their retirement savings, potentially accumulated over many years and involving several employers. This increased visibility is a positive step, encouraging people to take a more active role in their financial futures.
However, it also creates a moment of vulnerability. Faced with unfamiliar figures and the ability to consider complex decisions about their future, users may seek advice quickly from the emotional impact of seeing a large pension pot or the urgency to "do something" with it, often without knowing where to turn.
With financial advice still out of reach for many given the costs, many consumers are gaining their education through other means, quite often social media. One promising development is the Financial Conduct Authority's (FCA) proposal for "targeted support", a new category of help that sits between general guidance and full financial advice, which seeks to bridge this advice gap.
This approach aims to provide more personalised assistance without triggering the full regulatory burden of traditional advice, thus lowering costs. The challenge, however, is still the ease and accessibility offered by a growing number of unregulated financial influencers, or "finfluencers" with a mass following offering guidance on social media platforms.
The "finfluencers" present themselves as experts, offering tips on pension transfers, early access to funds or high-return investments. Their content is often emotionally persuasive, framed as personal success stories or quick wins. Yet, behind the appealing narratives, there is frequently a lack of qualifications, regulatory oversight or accountability.
Regulators are trying to keep pace and the FCA has already removed over 650 pieces of poor or unregulated financial advice from online platforms, but this is likely just a drop in the ocean. The volume and speed of content creation online make it nearly impossible to catch every misleading post or video before it causes harm.
Recent research shows that over half of those who acted on financial advice from social media lost money, with average losses exceeding £3,700. Younger savers are particularly at risk, with many turning to platforms like Instagram, TikTok and YouTube for financial guidance. The emotional pull of these channels can override rational decision-making, especially when the advice is delivered in a relatable, informal tone.
The dashboards could unintentionally amplify this problem, as users log in and discover forgotten pensions or unexpectedly large sums, they may be tempted to act quickly, perhaps transferring funds or consolidating pots, without fully understanding the implications.
Beyond poor or unregulated advice, there are also serious concerns about fraud and scams. Users may become targets for high-pressure sales tactics or fraudulent investment schemes. Scammers often exploit moments of financial discovery or uncertainty, offering "too good to be true" opportunities that promise higher returns or early access to funds.
These scams can be highly sophisticated, mimicking legitimate providers or using cloned websites, or even dashboards themselves, to deceive users. What makes the threat even more pressing is the growing use of generative AI by fraudsters. These tools can now produce convincing fake emails, verbal interactions with voice cloning, websites and even chatbot interactions that closely resemble those of regulated financial institutions, making it harder than ever for consumers to distinguish between genuine and fraudulent communications.
Imagine logging into your new pensions dashboard and discovering a pension pot worth £40,000 that you had completely forgotten about. Excited and unsure what to do next, you search online for advice.
Within minutes, you are watching a slick video from a self-proclaimed expert promising to "unlock" your pension early with no tax penalties. It sounds convincing, the branding looks professional, and before you know it, you have handed over your details. This is exactly the kind of scenario scammers are counting on.
Regulators are aware of the risks and the FCA has introduced a new regulatory framework for pensions dashboard service providers, including requirements around data accuracy, marketing restrictions and scam prevention. These measures are welcome, but enforcement will be challenging, especially given the scale and speed of online content creation and agility of scammers.
Ultimately, the success of pensions dashboards will depend not just on the technology, but on the protection ecosystem that surrounds it and, crucially, consumer education. Users must be equipped to recognise red flags, seek regulated advice and navigate their newfound pension visibility with confidence, not confusion.
Ian Bell is head of pensions and Erin Sims is fraud risk services director at RSM UK
