"The government is right to be preparing for legislation – all pension providers and schemes need to be involved, as well as the State Pension. "
In the DWP's feasibility report, published today, the governemnt said it believes multiple dashboards will improve choice for consumers, allowing them to use the dashboard that most meets their needs.
However DWP stressed that "these should exist alongside a non-commercial dashboard hosted by the Single Financial Guidance Body", offering an impartial service to those who prefer it, or who may not be targeted by the market.
Coinciding with the report, Pensions minister Guy Opperman announced that the government will work with the pensions industry to "include State Pension information at some stage".
He confirmed that the development and design of dashboards will be industry-led with government legislating where necessary, for example to compel pension schemes to provide data to consumers via dashboards.
Guy Opperman added: "Pensions dashboards are another major milestone in our radical pension reforms, harnessing innovative technology to benefit savers. Plain pensions information at the touch of a screen will ensure better-informed, more engaged savers and help many more people to plan effectively for retirement.
"Bringing pensions information into the digital age has the potential to revolutionise the way we all think about and plan for later life. People, young and old, should have all the help they need to get ready for retirement and maximise their pension incomes and, working with industry, we will ensure they do."
Nigel Peaple, director of policy and research at the Pensions and Lifetime Savings Association, commented: "The publication of the feasibility report is a significant step forward for the dashboard project. Pensions dashboards will be an essential tool to help savers plan for their retirement. There are a number of important questions which will need to be worked through, such as on governance, compulsion, regulation, the timetable and funding. We look forward to working with the industry, savers and the government to make a success of the dashboard."
Yvonne Braun, director of long-term savings policy at the ABI, said: "Today, pensions dashboards start moving from rhetoric to reality. Being able to access all your pension information in a single place will transform retirement planning for millions. Dashboards will also help reunite people with an estimated £20 billion in lost pensions money. The government is right to be preparing for legislation – all pension providers and schemes need to be involved, as well as the State Pension. We’ve been working hard for more than two years with our members and partners to lay the groundwork but there’s a huge amount still to do. We’re excited to get on with the next phase, and to being joined by all parts of the pension system."
Sir Hector Sants, chair of the Single Financial Guidance Body, concluded: "Pension dashboards will be a major step forward in helping people make the most of their money and pensions. This requires individuals to be informed, empowered and financially capable. Reflecting its mission, the Single Financial Guidance Body will welcome the opportunity to work with industry to deliver dashboards."
