But the SMF, which works to promote cross-party co-operation in politics, argued that dashboards alone will not be enough to solve low levels of pension engagement and understanding.
It argued that the potential of pensions dashboards could be squandered if savers who are off track for the retirement they want do not have the confidence or knowledge to take action to improve their prospects.
SMF analysis of an Opinium survey of 3,000 people across the UK, commissioned by M&G, indicated that two-fifths (40 per cent) of full-time workers with pensions are unaware of how much their employer contributes to their pension funds.
More than two-fifths (43 per cent) of full-time workers with pensions had never changed their own contribution levels, according to the survey.
The research, carried out in December, also found that many workers had not consolidated their pensions. Consolidation can bring some benefits, such as the potential for lower fees, although some pensions may come with particular perks, so consolidation decisions should be carefully weighed up.
Many workers are saving into defined contribution (DC) pensions, where the saver bears the risk of how much income they will end up with in retirement, based on factors such as their pension contributions and the performance of investments.
Defined benefit (DB) pensions, which promise savers a certain level of income in retirement, based on their salary, have become more scarce.
The risks of under-saving into pensions stretch beyond the implications for people with low pension savings, with the potential for significant additional consequences for the welfare state, against a backdrop of an ageing society and the growing state pension liabilities that result, the report argued.
The SMF and M&G argued that MoneyHelper, which is run by the Government-backed Money and Pensions Service (MaPS), could deliver the first version of the health-check service, using its impartial platform before commercial dashboard providers started offering their own.
Richard Hyde, senior SMF researcher, said: “Pensions dashboards are a welcome step forward, but information on its own won’t fix the problem. Millions of people are still under-saving for retirement and many barely engage with their pensions at all.
“Without follow-up support, there’s a real risk people see worrying figures and don’t know what to do next. A pensions dashboard health check – offering additional personalised guidance – could help turn awareness into action.”
Anusha Mittal, managing director of individual life and savings at M&G said: “The data and research is clear – we are facing into a retirement and savings crisis, fuelled by low levels of engagement and underpinned by low financial confidence.
“Collective action is now necessary. Pension dashboards will have a significant role to play but they need to be supercharged by regular pension health checks, which provide practical and accessible guidance.
“The good news is that with the right help, a health check could turn passive awareness into confident future-proof decisions.”
Zoe Burns-Shore, executive director for customer delivery at the Money and Pensions Service, said: “As part of our development and testing of the MoneyHelper pensions dashboard, we are exploring how we can direct people to the free and impartial guidance we offer at MoneyHelper to help them make the most of their pension.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “A key challenge is that people have pension pots spread across different providers and don’t have an idea of how much they have in total.
“Dashboards will help here but the further issue is that people don’t know what kind of income that pension pot will actually give them in retirement.
“Health checks could really help people in understanding this and you can also get some clarity by making use of some of the online tools that are available.”