The Pensions and Lifetime Savings Association (PLSA) believes the Pensions Dashboard project could be the key to helping millions of UK consumers take control of their retirement savings. But for the dashboard to be an effective tool it must be comprehensive, effectively regulated and underpinned by strong independent governance to ensure savers are given the same information wherever they look.
The main objectives for the Pensions Dashboard are to allow savers to see their entire pension savings in one place and help savers find some of the estimated £3 billion in lost pensions . The dashboard’s digital infrastructure will allow consumers freer access to their money – improving engagement in pensions and in turn savers’ future retirement outcomes.
The PLSA has worked closely with other organisations in the development of the Pensions Dashboard project and the report, Pensions Dashboard Project: Reconnecting people with their pensions, released today.
Graham Vidler, Director of External Affairs at the Pensions and Lifetime Savings Association, said:
“The Pensions Dashboard project is a ground breaking initiative and we are delighted to be involved in an industry wide project that will offer so many benefits for savers. The level of collaboration has been impressive and shows how keen the pensions industry is to help savers.
“More than three quarters of people (78%) admit they are not sure or do not know where to look to tell if they are on track with their retirement savings. The Pensions Dashboard will help to manage this very real problem and help savers to feel more in control and engaged with their pension savings.”
As part of research for the PLSA’s new consultation, Hitting the Target – Delivering Better Retirement Outcomes, four out of five people (80%) said that a national retirement income target would help them plan for retirement. The combination of a nationally recognised target and digital infrastructure that allows consumers to compare their savings to that target would be a powerful tool for raising the level of retirement income.
To provide these benefits, The PLSA believes the Pensions Dashboard must be well regulated and underpinned with good governance to ensure savers are given the same data wherever they look. This should take the form of Financial Conduct Authority (FCA) regulation and an independent governance entity accountable to parliament. The PLSA also recommends that the Single Financial Guidance Body hosts one Dashboard, in order for savers to have access to one trusted and commercially neutral option.
In addition, all pension providers and schemes should be compelled by legislation to make their data available to ensure the Dashboard is comprehensive and effective. Any timetable to achieve this must not result in disproportionate costs for schemes or for the employer or members who pay for them.
Graham Vidler, Director of External Affairs at the Pensions and Lifetime Savings Association, added:
“Research commissioned for the Pensions Dashboard project, in partnership with the Money Advice Service, showed that trust towards financial services was low amongst the public. To enable savers to get the most out of their pension savings it is crucial that an impartial organisation that savers feel they can trust, such as the Single Financial Guidance Body, offers a Pensions Dashboard.
“The Dashboard has the potential to bring pensions into the digital age; and we look forward to working with the group to make the current prototype a reality. The Dashboard will be a success if it is consumer-focussed and well regulated.”
More information on the Pension Dashboard available here.
NOTES TO EDITORS:
Lee Blackwell, Head of Media & PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073 023, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007 713, E: [email protected]
Eleanor Carric, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]
£3 Billion - Pensions Dashboard Project: Reconnecting people with their pensions - pg 26
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.