The government has finally revealed it will introduce multiple pension dashboards, with the first one expected in 2019.
However, the government hasn't guaranteed state pension data will be included on the pension dashboard in 2019 or that legislation for compulsion to force providers to reveal the size of pots will be introduced at this point.
The Department for Work & Pensions (DWP) today (December 3) published a consultation on this matter, accompanied by the awaited feasibility study, originally tabled to be published in March.
In September, the government appeared to backtrack on the pension dashboard stating it would let the industry take lead on the project as it shied away from committing to force providers to submit client data.
The DWP reiterated this argument today, but it revealed, however, that it will help to convene a delivery group, comprising experts, industry and government, to facilitate implementation of the technology that will enable dashboards to operate.
This group will be convened and stewarded by the Single Financial Guidance Body (SFGB), which will "help to ensure that industry safely and securely deliver their part in making dashboards happen".
The DWP argued consumers will benefit from a range of dashboards to choose from, and will work with the pensions industry to "include state pension information at some stage".
Many pension experts have said the inclusion of state pension data was vital for the success of the project.
The government also said it is "committed to legislate where necessary - for example, to compel pension schemes to provide data to consumers via dashboards".
However the pensions industry has warned that without compulsion the most important pension data will not be captured by the dashboard, which could pose an unacceptable risk for consumers.
According to Guy Opperman, minister for pensions and financial inclusion, pensions dashboards are another major milestone in the government's "radical pension reforms, harnessing innovative technology to benefit savers".
He said: "Plain pensions information at the touch of a screen will ensure better-informed, more engaged savers and help many more people to plan effectively for retirement.
"Bringing pensions information into the digital age has the potential to revolutionise the way we all think about and plan for later life.
"People, young and old, should have all the help they need to get ready for retirement and maximise their pension incomes and, working with industry, we will ensure they do."
Kay Ingram, director of public policy at LEBC, said she recommended to the DWP that a single dashboard "could be used to thwart pension scammers, who have tricked some consumers into losing an average of £91,000 of their pension savings".
She said: "We recommended that each consumer and each regulated adviser should be given a PIN with which to access the dashboard. By restricting access to those with a Pin, unregulated fraudsters would not gain access.
"This could still work with multiple dashboards, but unless the public are clear on how many there are, multiple dashboards could make it easier for criminals to trick the public into divulging their personal data.
"Security of data will be key to giving consumers confidence to use the dashboard to plan their retirement."
Anthony Rafferty, managing director of fintech experts Origo, said the government has now provided direction on the key topics raised by industry – compulsion, digital identity, inclusion of the state pension and suitable governance.
Mr Rafferty said: "This will provide clarity to pension providers to allow active preparations to commence.
"Today's report takes the industry a step further to delivering a comprehensive, simple, consolidated view of pensions for tens of millions of UK consumers for the very first time.
"The direction set today should be welcomed given the good it will do for all UK citizens in helping them plan for retirement, find lost pots and in helping to address the savings gap."
But Jon Greer, head of retirement policy at Quilter, pointed out this clarity has come quite late in the day.
He said: "With the feasibility study we start the next chapter in the dashboard saga. It has been a long drawn-out process to reach this point, so there will be some exasperated relief that the study has finally been published and government have pinned their colours to the mast ahead of 2019.
"The government have decided to allow both industry dashboards and a non-commercial dashboard hosted by the Single Financial Guidance Body. However, all the information will be gathered by the Pension Finder Service, to which schemes will be required to provide their data too.
"In theory, the approach sounds sensible and has its merits. Interestingly, the DWP have concluded the SFGB will convene and oversee the industry delivery group. This adds another element to their already over flowing plate, before they have even started."
maria.espadinha@ft.com
