The Courier & Advertiser (Fife Edition)
Delay in pensions dashboard system
Pensions dashboards – where people can see all their retirement savings pots in one place – will not be ready until 2023.
A timeline set out by the Money and Pensions Service( Ma PS) shows schemes and providers will start being compelled to connect to the dashboards from then.
It is expected there will be sufficient findable pensions by then, so that dashboards will be ready to be offered to consumers.
Investment platform AJ Bell said the UK Government would likely be criticised for delays after previous indications that dashboards would be introduced from last year.
But Tom Selby, a senior analyst at AJ Bell, said: “Rushing the introduction of half- baked pensions dashboards would have risked causing terminal damage to a project which has the potential to revolutionise retirement engagement in the UK.
“Allowing people to see all their retirement pots in one place is a colossal undertaking, particularly when you consider the hotchpotch of different schemes that exist.”
It is hoped the dashboards, which will be able to be viewed with the touch of a smartphone screen, will make it easier for people to see exactly how much in total they have saved for their retirement–and how much more they may need to put aside.
The scheme will complement automatic enrolment, the landmark initiative which has brought millions of people in the UK into workplace pension saving.
Helen Morris sey,a pension specialist at insurer Royal London, said :“After already progressing at a snail’s pace for some time, it is hugely disappointing to see this project further delayed.
“Of course, such projects are complex but the potential that dashboards have to help people take
control of their retirement planning is huge and must be grasped. Every delay risks letting down a generation of savers.”
Kate Smith, head of pensions at Aegon, said: “The timetable has been pushed out by four years.
“Although this is disappointing, we believe the delay is worthwhile – using the extra time to get things right.
“Critical mass is needed from day one, to allow people to find the majority of their pensions.”
Rob Yuille, assistant director and head of long term savings at the Association of British Insurers, said the update had delivered “a clear timeline of when we can expect the public to start using dashboards and what needs to happen first”.
He added: “That gives certainty for industry, and allows time to make sure the dashboards work effectively and are user-friendly.
“The timeline is longer than we might have wanted, but the project has now made tangible progress and reached key milestones.”
Pensions and Financial Inclusion Minister Guy Opperman said: “Pensions dashboards will revolutionise retirement saving which is why it’s vital we get them right.
“Bringing information to savers at the touch of a smartphone screen will transform how we all think about and plan our pensions , improving financial resilience for later life.”
Chris Curry, principal of the pensions dashboards programme at MaPS, said: “Industry has provided useful insight into the challenges of verifying people’s identities and matching them to pensions.
“We are working on defining our requirements for this, which will provide greater clarity.
“We will continue to
work with industry to find and develop robust solutions to these and other challenges.”
Gareth Shaw, head of money at consumer champion Which?, said: “It’s almost five years since the government first committed to introducing the pensions dashboard, and savers will be disappointed to learn of yet another delay to its delivery.
“Dashboards have the potential to bring huge benefits for savers by bringing together all their pensions in one place – including the state pension – which should help millions of people to keep track of their savings and understand them better.
“It’ s up to the government, regulator and industry to ensure this happens, but we need to see progress quickly as some consumers have struggled for too long with a complex, fragmented pensions system.”