Pension Dashboard  

Advisers to get access to clients’ pension dashboards

Out of scope

But not all pensions will be shown on the dashboards. 

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Benefits which are out of scope include pensions where a tax-free lump sum has been taken, and pots which have been annuitised or are in drawdown, including partial drawdown. 

Members who have taken uncrystallised funds pension lump sums payments but continue to be active or deferred members of the scheme remain in scope and would need to be provided with their accrued pension information, based on the remaining value of their pension, the DWP said.

It said its priority was to focus on benefits not yet in payment to support retirement planning but “pensioner members’ entitlements may be brought into scope in the future”.

The rules also outline what requirements must be met for a dashboards service to be a “qualifying pensions dashboard service” and what trustees and managers of occupational schemes need to do to be compliant with the regulations.

The Pension Regulator has been given powers to issue maximum penalties of £5,000 for an individual or £50,000 in other cases.

In his foreword, pension minister Guy Opperman, said: “We acknowledge that our proposals are ambitious and that making a success of pensions dashboards is a significant task for both government and industry. 

“But dashboards are an essential part of our plans to modernise the pensions industry and make it fit for the 21st century digital age. Dashboards will open huge opportunities to reunite individuals with lost pots and transform the way people think about and plan for their retirement.”

Timescales

But the dashboards will not be available any time soon. People may have to wait until 2026 to see all their pots in one place, the government said.

Under the proposed rules large schemes (1,000 members or more) will need to provide data to dashboards between April 2023 and September 2024.

Medium-sized schemes (100-999 members) will be brought in between October 2024 and October 2025 and small and micro schemes (99 members or less) are “expected from 2026”.

State pension details will be available from “day one”, the government said. 

By April 2025 it is expected that 99 per cent of memberships will be connected to the digital architecture and sharing members’ data.

Tom Selby, head of retirement policy at AJ Bell, said: “Anyone expecting dashboards to be launched immediately with bells and whistles attached might be disappointed by the relatively slow staging timetable outlined today.

“The government has understandably focused on getting the biggest schemes to comply first as this is where the majority of pensions are held. Once a ‘critical mass’ of schemes has been reached and prototypes have been fully tested, dashboards will then be made available to the public.”