Personal PensionSep 16 2015

Gov’t: Private sector should fund ‘pensions dashboard’

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Gov’t: Private sector should fund ‘pensions dashboard’

It is not the government’s role to fund a ‘pensions dashboard’ system, Harriet Baldwin, MP and economic secretary to the Treasury, told the Work and Pensions Committee today (16 September).

Giving evidence on the pension freedoms guidance, Ms Baldwin initially told the MPs she had no announcements with regard to the ‘pensions dashboard’, then added that she thought if there were financial technology companies or private sector providers who are able to come up with that now she thought it would be extremely popular and welcome by consumers.

She said: “If we were to have the funding, if we were wanting to make the case to have that funding I’m not sure if I’d see that as our role - the role of government. I may be wrong but that’s where my head is at on that at the moment.”

In December 2014, the Financial Conduct Authority proposed new measures including a ‘pensions dashboard’ and an alternative to the existing wake-up pack to help reinvigorate the retirement income market.

At that time, the FCA said that the longer term development of a ‘pensions dashboard’ would enable consumers to view all their lifetime pension savings - including their state pension - in one place.

The December report read: “We are aware that this idea has been raised in the past and we recognise the challenges in implementation and cost for such a project. However it has been successful in other countries, and we believe that the case for introducing it in the UK is getting stronger.”

In March 2015, a report suggested that a new ‘pensions dashboard’ proposed by the regulator should be modelled on a version used in Sweden, which allows users to get real-time estimates of their combined pension income across public, private and occupational streams once they retire.

The report by the Financial Inclusion Commission, published made a number of key recommendations on what steps need to be taken to ensure a financially ‘inclusive’ society.

Meanwhile, Ms Baldwin also told MPs that responsibility for Pension Wise is to move from the Treasury to the department for work and pensions during this financial year.

She said: “We have decided to make a machinery of government change as per your recommendation.

“We will be moving oversight over to DWP over the course of this financial year.”

ruth.gillbe@ft.com