A comprehensive pensions dashboard is a step closer to becoming a reality, following the successful creation of a prototype dashboard, the Association of British Insurers has announced.
The ABI revealed today (31 March) that it had demonstrated the prototype to government ministers, opening the way for the next phase in the creation of a working dashboard.
A comprehensive pensions dashboard would allow every individual in the country to view all of his or her pension pots in one place at the click of the button.
To work, however, it will require every pension scheme in the country - including the thousands of workplace defined benefit and defined contribution schemes - to feed into the same network.
Just 17 pension providers took part in the prototype project, suggesting a comprehensive dashboard including thousands of schemes and millions of members was still a long way off.
But Yvonne Braun, director of long-term savings and protection policy, said the success of the prototype proved the "technological hurdles can be overcome".
"Giving people access to clear information about all their pensions has the potential to revolutionise how they think about saving for their retirement," she said.
"Now we must ensure industry, government and regulators continue this close collaboration so the excellent work done so far can be developed into a valuable service the public can use by the government’s target of 2019."
The ABI said three systems had needed to be built to facilitate the dashboard prototype, the most important being the "pensions finder" technology.
This is essentially the pipes that carry information from pension schemes to the dashboard interface or interfaces.
The ABI commissioned two pensions finder networks to be built, one by Origo, and one by Experian. Both, it said, were a success, suggesting either fintech firm could build the final network.
Rob Yuille, assistant director of retirement policy at the ABI, told FTAdviser that the industry was currently leaning towards favouring a single pensions finder service, but stressed this was still up for debate.
In addition to the pensions finder service, the ABI commissioned fintech firms to build technology to allow pension schemes to plug into the pensions finder service.
It also commissioned the creation of a dashboard interface - the part that will be used by consumers and financial advisers.
The government has stated that it wants a "multiple dashboard" model, that will see providers building their own consumer interfaces, rather than the government or industry building a single, independent dashboard.
Economic secretary to the Treasury Simon Kirby said he was "delighted" by the success on the prototype.
“Harnessing the power of technology to give people easier access to their information will help them be more informed when planning their retirement – one of the most important financial decisions in a person’s life," he said.
"I look forward to unveiling the prototype to the public for the first time at Britain’s Fintech week on 12th April."
Pensions minister Richard Harrington said: “This project has enormous potential to help people keep track of their pension and make the most of their hard earned savings, and I believe will be a transformational tool in providing the necessary information to people throughout their working lives to plan their retirement."
Darren Philp, director of policy and market engagement at The People’s Pension, said the prototype was an "important milestone for the pensions dashboard".
But he went on: "This is the easy bit though. Crucial decisions remain around compulsion, a public good dashboard and the wider governance and funding of the project.
"If the government wants to maintain the momentum needed to deliver the dashboard by 2019, then it needs to press ahead urgently with resolving these fundamental issues."
Tom Selby, senior analyst at AJ Bell, welcomed the prototype as a "welcome step forward" that "should help boost engagement with retirement saving".
He argued, however, that it was not a "panacea" to solve low engagement levels, and urged the government to work towards including Isas - in particular the new Lifetime Isa - on the final dashboard network.
The government wants the final dashboard to be ready by 2019.
However, it has yet to decided whether or not to make participation compulsory - a move the ABI believes is essential to ensure less technologically sophisticated workplace pension schemes are included in the dashboard network.
james.fernyhough@ft.com
