What is the pensions dashboard?

The Government’s New Pensions Dashboard

The Government is to launch a “pensions dashboard”, which should allow consumers to quickly access details of the arrangements they have made to provide for their retirement.

When it launches, everyone in the UK with some form of pension savings will be able to access the dashboard and view information such as:

What Information Will Be Available?

• What pension schemes they have contributed to, including final salary occupational schemes, defined contribution occupational schemes, personal pension plans and workplace pensions
• How much they have saved into each arrangement
• What level of income they might receive from each scheme
• What level of income they might expect from the state pension

How Will the Dashboard Work?

Once a person confirms their identity, the system will send a query to pension schemes and pension providers. It will then produce a list of schemes that match the individual’s personal details.

In justifying the need for the dashboard, the Government notes that as much as £400 million could be sitting in pension arrangements where the plan holder is unaware of the scheme’s existence.

Why Is the Dashboard Needed?

Keeping track of pension plans is increasingly difficult because people now move jobs more regularly.

The Government also notes that the average person has 11 different jobs during their working life. Employers must now provide a contributory workplace pension scheme. As a result, every time someone moves to a new job, they should receive a brand new pension scheme as well.

Consumers therefore need to keep track of all these schemes, which is no easy task.

For example, someone could retire at age 70, which is far from implausible given the trend towards working longer, and then face tracking down a workplace pension scheme they stopped contributing to at age 25.

It is therefore hardly surprising that people often miss out on retirement income to which they are entitled because they do not know a particular pension arrangement exists.

The official Pensions Dashboard website makes the bold claim:

“If you have missing pensions then you’ll find them by using Pensions Dashboards.”

When Will the Dashboard Launch?

The Government says it hopes to fully implement the pensions dashboard in 2019. However, this is not a firm commitment, and there is currently no definitive implementation date.

April 1 2019 has been suggested as the implementation date, although reports suggest it is far from certain that this target will be met.

What Are the Advantages?

The advantages of the dashboard are easy to see.

Easier Access to Pension Information

Individuals will be able to access details of all their pension arrangements at the touch of a button.

Saving Time for Consumers

The dashboard should also save time that people might otherwise spend tracking down schemes and contacting providers for information.

Are There Any Concerns?

However, concerns have been raised over whether the dashboard will provide adequate protection for individuals’ data.

Data Compatibility Concerns

There are also doubts about whether all pension providers will be able to provide data in a format compatible with the dashboard.

Potential Technical Problems

Some industry commentators also believe that a project of this size will inevitably experience initial teething problems.

This could affect public trust in the dashboard if major IT problems arise or if the implementation date is delayed.

How Does the UK Compare Internationally?

Australia, Sweden and Netherlands are among the countries that have already successfully launched similar dashboard schemes.

There is now concern within Government and the financial services industry that the UK is “lagging behind” other countries.

So hopefully a functioning dashboard system will be up and running in the UK before the end of next year.

For more information, get in touch with our team today on 0161 521 8641 or info@b-compliant.co.uk