House of Commons Library

Pensions dashboards

Published Tuesday, January 21, 2020

This Commons Library Briefing paper looks at the debate on the pensions dashboard, which is being developed to enable people to view all their lifetime pension savings (including their state pension) in one place

Jump to full report >>

A pensions dashboard is a digital interface that enables people to see all their lifetime pension savings in one place. Dashboards seek to provide better access to pensions information so that individuals can make better decisions about their retirement plans.

Recent labour market and pension reforms have made the need to improve access to information more pressing. Pensions have become more complex and individuals have taken on greater responsibilities for saving and investing for their retirement years.

In 2016 the Financial Conduct Authority (FCA) said a dashboard was needed. It said the data for this should ideally be retrieved directly from providers, be updated in real time and contain projections of pension income based on different scenarios. A Pensions Dashboard Prototype Project later showed that it would be possible to build such a dashboard in the UK.

In Budget 2016 the Government said it would ensure industry designed, funded and launched a pensions dashboard by 2019. This deadline was not met.

DWP published the findings of a feasibility study on 3 December 2018 and launched a consultation. In April 2019, the Government’s response to this confirmed that:

  • Industry would design and develop its own dashboards. The Single Financial Guidance Body – now the Money and Pensions Service - would convene a delivery group to help ensure that this happened safely and securely.
  • Multiple dashboards would improve consumer choice but should exist alongside a non-commercial dashboard hosted by the SFGB offering an impartial service to those who prefer it, or who may not be targeted by the market.
  • The Government would legislate to require pension schemes to provide individuals data (with their consent) via pensions dashboards. This would follow the creation of “a robust delivery model with the appropriate governance.”
  • There might be merit in exempting some schemes from compulsory participation, such as Small Self-Administered Schemes (SSAS) and Executive Pension Plans (EPP).
  • The Government would work with the industry delivery group to integrate the State Pension into pensions dashboards.

In the Autumn Budget 2018, the Government committed funding for 2019/20 to “help fulfil its role in facilitating industry to make dashboards a reality”. However, it said that in the longer term the costs should be met by the pensions industry, possibly through existing industry levies.

In the Queens Speech the Government said that it would introduce a Pensions Schemes Bill in the 2019-21 Parliament. The Bill is expected to (amongst other things) give the Secretary of State powers to make regulations relating to pensions dashboard services, including provisions requiring schemes and master trusts to make their data available on pensions dashboards.

It is not yet clear when the dashboard will be launched.

 

Commons Briefing papers CBP-8407

Authors: Djuna Thurley; David Hirst

Topic: Pensions

Share this page

Stay up to date

  • Subscribe to RSS feed Subscribe to Email alerts Commons Briefing papers

House of Commons Library

The House of Commons Library provides research, analysis and information services for MPs and their staff.