By Aisling Finn on Tuesday 3 March 2020
In the age of digital finance, it appears pensions are one area still trailing behind the rest.
Despite the Government’s pledge to be carbon neutral by 2050 and planting millions of trees to do so, the pension industry remains a very paper-dominated sector.
A recent report from digital pension pot PensionBee says that in the UK we collectively receive 40m annual statements, or the equivalent to 23,500 trees.
According to the research, there is still an estimated 200m pieces of paper used in the printing of pension statements and envelopes- with the average statement being 6 pages long.
The London-based fintech estimates that the cost of the paper, printing and sending statements costs the industry £21.5m every year.
Clare Reilly, head of corporate development at PensionBee, said: “Paper statements destroy the environment, cost the industry millions to send, prevent meaningful consumer engagement and mostly sit unopened for decades in drawers.”
“Digital statements are better for the planet and better for savers. Pensions need to go digital-by-default or face becoming irrelevant in the age of Open Finance.”
The move towards digital-only banking and finance has been clear for some time now, even before the astronomic rise of the challenger banks many of the incumbent banks had an opt-out system to receive digital banking statements, rather than opt-in, to reduce their own paper trails.