In a speech on 12 September 2016, Economic Secretary Simon Kirby announced that 11 pension organisations had agreed to create a working prototype pensions dashboard by March 2017. The Government’s aim is for the dashboard to go live in 2019.
Research suggests the average person will move employers 11 times over their working life. Inevitably, this means many people will end up with several private pensions by the time they retire, and may find it difficult to keep track of their different pots. This is not a new issue, but in the March 2016 Budget the Government announced that it was looking to address this by ensuring the pensions industry designs, funds and launches a pensions dashboard by 2019, enabling individuals to view all their retirement savings in one place.
Technology has already revolutionised many things. Millions of individuals and businesses already benefit from the convenience and simplicity of digital services in many ways: banking, shopping and advertising to name a few. The Government wants to embrace this revolution, as demonstrated by its desire to implement a fully digital tax system by 2020. It wants pensions to catch up as well, particularly as for many people their pension is their biggest financial asset. It is assumed that the better the information available to us, the more effective decisions we make.
Making it happen
11 organisations, a mixture of life offices, consultants and master trust providers, have agreed to work together to build a first working prototype of the dashboard by March 2017, with the Association of British Insurers project managing the process.
In his speech on 12 September, Economic Secretary Simon Kirby said that there were three key principles that must underpin its design. It must be:
The group will have the first go at developing open, common standards, putting in place the right Governance structures and looking at how to overcome some of the tricky technical challenges.
The Government still intends that the dashboard will go live in 2019.
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