Pensions dashboards will give consumers information about their pensions savings from multiple sources through an online service. Consumers will be empowered by the presentation of information, helping them to engage with their pensions savings. It will support informed decisions and prepare the consumer for the transition between working age and retirement.
Conscious of the complexity of this project, my department has undertaken an extensive study of the elements required of pensions dashboards. The government believes that dashboards will deliver for savers, and today we have published the feasibility report so starting the process of consultation.
It is my firm belief that industry is best placed to finance and deliver this project and to create a technical dashboard infrastructure. This will advance a range of dashboard options.
The Government has listened to views that suggest compulsion is needed to maximise pension scheme participation in a reasonable timeframe. We propose to act to deliver this legislation, when parliamentary time allows, and following the creation of a robust delivery model with the appropriate governance. It is not our proposal to compel all schemes to provide data – we have outlined limited exemptions. We will work with the regulators and industry to help ensure responsibilities to protect consumers are upheld, whilst ensuring the safeguarding of consumer data.
We have met with the Chair and the Chief Executive of the Single Financial Guidance Body. We believe that this body is ideally suited to oversee the industry delivery group. It will bring together industry representatives, FinTech and consumer organisations to ensure successful implementation. We propose that a non-commercial dashboard, hosted by the Single Financial Guidance Body, will offer an impartial service to those for whom there is not a commercial offering.
It is a continued priority of this government, with the support of the pensions, financial services and consumer community, to restructure the UK’s pension savings culture against the backdrop of a new generation of savers. Dashboards will build upon the successful introduction of Automatic Enrolment, which has led to almost 10 million people either newly saving or saving more towards their retirement.
We are confident that the ‘Working together for the consumer’ document, published today, demonstrates the government’s and the department’s strong and sincere belief that pension dashboards have great potential to transform the pensions landscape for the consumer’s benefit. We look forward to receiving your feedback and proposals as to how government can best facilitate an industry-led delivery of this online service.
For ease of reference, I shall deposit a copy of the feasibility report and a related fact sheet in both libraries of the Houses of Parliament.
This statement has also been made in the House of Lords: