Eleven of the leading pension providers will build a pensions dashboard prototype ready to launch by March 2017, allowing savers to see all their pension pots in one place
The pensions dashboard, first announced at Budget 2016, is the latest step in the government’s wider strategy to help people engage with their pensions earlier.
Currently, there is no way for people to see the value of all their pensions in one place and research has shown that a third of people approaching retirement find it difficult to keep up to date with their pension pots.
The Treasury has successfully secured agreement from eleven of the largest pension providers, these are: Aviva, Aon, HSBC, LV=, NEST, Now: Pensions, People’s Pension, Royal London, Standard Life, Zurich and Willis Towers Watson.
The pensions dashboard will also provide a link to lost pension pots from previous employers. This would help release the £400m worth of unclaimed pensions savings.
The announcement of the pensions dashboard prototype comes from Simon Kirby, economic secretary to the treasury at the Aviva Digital Garage event.
Kirby, said: ‘Pensions and savings decisions are some of the most important a person will make during their lifetime. The government is determined to make sure people can access the information they need to plan effectively for their future.
‘The pensions dashboard will unlock a huge amount of information that will help people make the best choices for them and I am delighted that eleven of the largest pension providers have agreed to work together to build a working prototype by March 2017.’
The Association of British Insurers (ABI) has agreed to manage the pilot project, which could also be used to seek advice as to whether individual’s savings are in the best place.
CEO of the People’s Pension, Patrick Heath-Lay, said: ‘The pensions dashboard has the opportunity to change the way the we do pensions, delivering an infrastructure that has the potential to allow people the opportunity to see all their pensions in one place whilst driving greater efficiency within the pensions system. But it must be built first and foremost for savers and have strong, independent, ownership and governance.
‘It is great that the government and industry are working together to make this a reality. It is crucial that we all make the most of this opportunity and the industry as a whole embraces the dashboard.’
Kirby in his speech at Aviva's event, said: ' The dashboard needs to be an infrastructure of open standards, like a common language and system for finding, collating, and sharing pension information and it should be open to a range of companies who can meet basic standards of security and data protection – including banks and fintechs, not just pension providers.
'The dashboard needs to be flexible. It is unrealistic to expect every provider to be ready to contribute the same data to the dashboard at the same time. It is probably impossible to present all the different types of pensions in exactly the same way.
'I also needs to be reliable because if we want to encourage people to save more, then they need to be able to trust in pensions. That starts with people being able to access basic information, across all their pension pots, without having to pay to do so.'