Dashboards will boost savers' comprehension and confidence in long-term saving, say Guy Opperman and Sir Hector Sants
A digital revolution is about to shake up the world of pensions, a democratising change that will transform how people plan for retirement.
For too long pensions, probably the most important financial investment which any of us will ever make, have been complicated and difficult for people to grasp.
We all need and want clear, plain information.
Pensions dashboards will give all of us just that at the touch of a screen for the first time, putting users in the digital driving seat rather than being pension passengers.
Simple, secure information that we can trust about all of our pensions in one place online - available on a home computer, tablet or smartphone - bringing pensions into the 21st century as they catch up with all the other financial business we do digitally such as paying the bills and managing our bank accounts or credit cards.
Pensions dashboards will help people to understand clearly how much they have in different pensions and what they can expect to have to live on in retirement. Greater online transparency will boost not only savers' comprehension, but also consumers' confidence in long-term saving.
The government has committed to bringing forward primary legislation to require pension schemes to make consumers' data available to them through the dashboard they choose.
And the industry said through the government's consultation that it stands ready to develop the first dashboard models - which would demonstrate how information can be presented to consumers in a way that aids understanding - in 2019.
An industry delivery group brought together by the newly-established Money and Pensions Service will involve a range of key players from the industry, financial technology and consumer organisations to drive the development of dashboards, including the supporting architecture. It will set out a clear timetable and roadmap to drive progress towards fully functioning dashboards, developing standards and safeguards to protect users and their information.
As part of its goal to help people make the most of their money and pensions, the Money and Pensions Service will work also on a non-commercial dashboard as the delivery group focuses on research to test and gauge user needs.
Most pension schemes should be ready to provide consumers' information to them via dashboards within a three- to four-year window.
The government is clear that the state pension should be part of dashboard services and will work to make this happen as soon as possible.
The technology behind dashboards will feature a pensions finder service that will over time help people find ‘lost' pension pots, enabling them to unlock even more cash for their retirement.
We know that more can be done to help people, young and old alike, to make the most of their pension opportunities. Planning for retirement is vital. We're living and staying healthy longer and all of us need to think about starting to save or saving more for our nest eggs.
Dashboards will help everybody save for their future and maximise their pension incomes.
This year is pivotal for everyone involved in this pioneering project as we start to make pensions dashboards a reality, boosting the confidence and trust of millions of people in their retirement savings and planning.
Together the Government and the Money and Pensions Service look forward to working with industry to make dashboards a reality as soon as possible.
Guy Opperman is minister for pensions and financial inclusion
Sir Hector Sants is chairman of the Money and Pensions Service
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