Govt sets rules for pension dashboard

Govt sets rules for pension dashboard

The government is to force providers to feed data into the pension dashboard and expects the process to take no longer than four years.

In its response to the consultation on the dashboard, out today (April 4) the government stated it would bring forward legislation to "compel all pension providers to make consumers’ data available".

It is expected that the majority of schemes will be ready to go live "within a three to four year window".

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The government also confirmed that state pension information will be included as soon as possible.

The pensions dashboard will allow savers to log in and view all of pension pots, including details of the state pension, in one place and gain an insight into their expected income in retirement. 

The government will allow providers to create their own dashboards but expects these services to be free and user-friendly.

As previously stated a non-commercial dashboard will be delivered and overseen by the new Single Financial Guidance Body (SFGB). 

Work and Pensions secretary Amber Rudd, who gave the green light to the pensions dashboard this morning, said the initial industry models are expected later this year. 

Ms Rudd said: "With record numbers saving for retirement as a result of our revolutionary reforms, it’s more important than ever that people understand their pensions and prepare for financial security in later life.

"Dashboards have the potential to transform the way we all think about and plan for retirement, providing clear and simple information regarding pension savings in one place online.  I’m looking forward to seeing the first industry dashboards later this year."

The consultation response also outlined plans for an industry delivery group, brought together by the SFGB, that will set out a timetable for fully operational dashboards, as well as setting standards and ensuring security across the portals. 

John Govett, SFGB chief executive, said: "Our vision is everyone making the most of their money and pensions. A big part of this is equipping and empowering people to engage with their pensions, often the biggest financial investment they will make. 

"The new pensions dashboards will play a crucial role in this, helping people make decisions about their money and pensions with confidence, so they can enjoy greater financial wellbeing throughout their lifetimes."

The government initially put the proposals forward three years ago as a way of limiting the number of ‘forgotten pensions’. 

Data from the Association of British Insurers showed more than 1.6m pension pots had been ‘lost’ with the value amounting to roughly £20bn. 

Yvonne Braun, director of long-term savings and protection policy at the ABI, added: "The digital retirement revolution is here at last. All the pieces are being put in place to deliver the easy access to retirement information everybody needs and that the pensions industry is so keen to deliver. 

"The ABI, leading a cross-industry group of pension providers and schemes, has already put years of work into making dashboards happen and we can’t wait to see these vital services in action."