Government could force providers to share pension data

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Government could force providers to share pension data

The government will legislate on the pension dashboard if it is "appropriate and necessary" to bring pension schemes and providers on board, Guy Opperman revealed.

Speaking at a workshop session on the project on Monday (11 December), the minister for pensions and financial inclusion said "there is growing evidence for some form of compulsion to bring about a complete dashboard in a reasonable timeframe".

Earlier in October a project group, managed by the Association of British Insurers and including 16 industry providers and the Pensions and Lifetime Savings Association (PLSA), set out its recommendations for what should happen next with the pension dashboard, calling for legislation, a timetable and a non-commercial platform.

The Department for Work & Pensions (DWP) has taken over the lead in this project from HM Treasury, and will present a feasibility study on the dashboard in the spring.

The plan behind the pension dashboard, which is due to be launched in 2019, is to create the technology to enable savers to see all of their retirement pots in one place at the same time, giving them a greater awareness of their assets and how to plan for their retirement.

At the workshop sessions, industry experts told the government that the project should be phased-in and be accessible first-hand to people at retirement.

Mr Opperman said: "The DWP feasibility study is looking into the detail of all this and we will explore the user perspective and the requirements and concerns among industry.

"It is time to bring pensions into the digital age."

According to the minister, all scheme providers "have a duty to ensure that a person's data, information that belongs to them, is made available when the person requests it."

He said: "The pension dashboard can help facilitate the provision of basic pension information, to the benefit of the consumer and industry.

"Particularly if it means reconnecting members with lost pots."

Mr Opperman argued it is vital to have a consumer protection framework in place with the project to "to mitigate the risks of poor choices, potential mis-selling and scams."

He said: "We need to maximise people's engagement in their pension while maintaining their trust. We will ensure that consumer interests are properly safeguarded and their information protected.

"There are many complex issues and challenges to the delivery of a dashboard, and I want to hear your views."

According to Gareth Shaw, money expert at Which?, the "DWP must ensure that this consultation really does deliver a dashboard that is shaped around consumers' needs."

He said: "The dashboard has massive potential to boost consumer engagement and so we must see clear signals from government that all pension providers will be required to feed in the right information - including charges - for people to properly plan for retirement."

maria.espadinha@ft.com