The idea of the pensions dashboard has been around for years. The first prototype was launched in April 2017 and, following some hiccups along the way, final development and testing is planned to be complete around the end of 2022. Compulsory staged onboarding of pensions schemes begins in spring 2023.
Chris Curry, principal of the Pensions Dashboards Programme, says: “Pensions dashboards will enable individuals to access their pensions information online, securely and all in one place, thereby supporting better planning for retirement and growing financial wellbeing.
"Dashboards will provide clear and simple information about an individual’s multiple pension savings, including their state pension. They will also help them to reconnect with any lost pension pots."
The need for a dashboard service has increased, as has the frequency with which not just younger employees change jobs. Since the introduction of auto-enrolment, the number of small pots and forgotten pensions has increased, but this issue also preceded AE.
The Pension Dashboard Programme’s (PDP) main objective was to allow people to search for their pension plans. This has evolved overtime to show the member detail of his pot and how much that pot is worth at retirement – the estimated retirement income (ERI).
Timetable for launch
Along with the Money and Pensions Service, three independent dashboard providers are engaged in the initial pilot (Aviva, Bud and Moneyhub), working with a limited number of schemes.
More broadly, schemes are currently preparing and selecting integrated service providers (ISPs) to provide data to the PDP ecosystem. Our insight on the implication for financial advisers is based on the fact that we are one of the beta ISPs working with schemes and their members in the development and implementation of their dashboard integration.
Assuming no further delays, the timetable for schemes having to be on a dashboard is:
Wave 1 – Large organisations
- April 2023: state pension.
- April to June 2023: large master trusts; most personal and stakeholder pensions.
- July 2023 to February 2024: money purchase used for AE.
- April 2024: public service pension schemes and CDCs.
- November 2023 to September 2024: large non money purchase schemes and other large money purchase schemes.
Wave 2 – Medium organisations
- October 2024 to October 2025: all relevant medium schemes.
Wave 3 – Small and micro organisations
- January 2026 onwards: small and micro schemes.
But dashboards will only be made publicly available when:
- the security of the ecosystem is fully assured;
- the user experience has been extensively and robustly tested;
- user behaviours have been understood and any adverse impacts or unintended consequences mitigated;
- the right rules and regulations are in place; and
- the service has enough coverage of pension providers/schemes and enough information about those pensions so that it demonstrably meets a user need and is useful to a significant majority of people.
Further information can be found at the PDP website.
How the dashboard works
To achieve the PDP’s objectives the operating architecture comprises several interacting components. An individual registers with a dashboard and provides their personal details. They can also authorise financial advisers to act on their behalf granting 'find', 'view' and other access permissions.
This information is sent to the PDP ecosystem, which undertakes an identity check and records consents and authorisations.
The PDP ecosystem forwards find requests to pension providers via their direct integration layer or an ISP.
When matches are found, unique identifiers are created (PeIs), and details sent back to the PDP ecosystem where the PeIs are recorded before being returned to the dashboard.
The dashboard can now send view requests to the direct integration layer or the ISP, who will check consents and authorisations with the PDP ecosystem before sending the desired pension information back to the dashboard.