Opening the door to innovation - the Pensions Dashboard
The government’s much-vaunted Pensions Dashboard could open the door to innovation in the provision of pensions and pensions products in the same way that freeing up the market environment paved the way for open banking, argues a piece in the FT’s Financial Adviser on the 10th of October 2018.
The article sees a plea for the Pensions Dashboard to allow greater delegated authority to independent financial advisers in informing the public about retirement planning, making pension comparisons and developing budgeting apps for consumers under the auspices of the new Single Financial Guidance Body (SFGB) that came into being on the 1st of October 2018 and assumes its full range of functions in January 2019 – replacing and combining the current roles of the government-backed Money Advice Service, Pensions Advisory Service and Pension Wise.
This might prove an effective arena in which – as happened in the case of open banking – consumers actively engage with the industry in developing an open pensions environment, whilst maintaining a high degree of sophisticated central control that ensures consumer protection, privacy and express consent.
In this way, a Pensions Dashboard might be pivotal in encouraging and promoting fintech innovation.
The concept of a Pensions Dashboard
The concept of a Pensions Dashboard grew out of the changing patterns of pensions savings over the average working life.
These days, many individuals are likely to have moved from one job to another, one occupation to another, and along the way have contributed to a number of different pension pots.
Keeping track of each one may become increasingly difficult over time, as the individual struggles to monitor each pension pot separately.
The Pensions Dashboard is intended to allow individuals to see all of those pots at the same time, in the same place, through private, secure access to all the necessary information about how much has been saved so far and what those savings might be expected to be worth in the future.
The Pensions Dashboard is due to launch in 2019. In the Autumn Budget last month, the Department for Work and Pensions (DWP) has said it will launch a consultation on the Pensions Dashboard later this year, while providing £5m for the project in 2019/20.
The Financial Adviser reported that the Government is taking steps to support "the launch of Pensions Dashboards, innovative tools that will for the first time allow an individual to see their pension pots, including their state pension, in one place".
The DWP will consult later this year on the detailed design for the project, and on how "an industry-led approach could harness innovation while protecting consumers".
Independent Pension Specialists
Here at Independent Pension Specialists, we have made no secret of our support for the development of a fully-functioning Pensions Dashboard.
Easy and secure access to the most fundamental information about the pension arrangements any consumer has made is the first step towards financial planning for the future and provides the building blocks for successful retirement planning.
Helping our customers make a real difference to their lives through careful planning of their finances and the retirement they want to enjoy is our principal mission. Please contact us to see how we can help you achieve your retirement aims.
The data cited in this piece is correct as at the time of writing