A concrete timescale for a “pension passport” may become clearer after the election, LV= has said.
The provider is working with HM Treasury and charity-backed Behavioural Insights Team to create a simple document showing a saver’s existing pensions.
Phil Brown, head of retirement proposition and change at LV=, said aim of the project was “to test the usability of a simplified wake up pack which incorporates the ideas first discussed and researched for a pension passport.
“We fully support the FCA’s second line of defence, but it is a shame that it is necessary as it indicates a systematic failure by the wider industry to help savers make the best use of the pension fund they have spent a lifetime building.”
He said the introduction of such a document could lead to better customer outcomes, due to increased consumer engagement with the retirement income market, which will help savers to find a solution that suits their needs,
However, a spokesman for LV= said May’s general election made it hard to establish a firm timescale for when a pension passport could become reality but added that this would likely become clearer afterwards.
The FCA has already thrown its support behind the creation of “pensions dashboards” which are used in the Netherlands and Denmark to show savers how much money they have in each of their pots.
Economic secretary to the Treasury Andrea Leadsom said: “The government’s pension reforms are about empowering people to make decisions that are right for them.
“Consumers need to be able to understand the most important features of their pension to help them work out their next steps.
“This is a real opportunity to demystify the pensions landscape and we welcome LV=’s longstanding interest in this area and their commitment to work with us to make this a reality.”
Adviser view
Trystan Lewis, a financial planner with Cheshire-based Griffin Wealth Management, said: “I think a pension passport is a good idea.
“People do not tend to do a good job of keeping track of these things unless they have a financial adviser.”
