Minister of Work and Pensions Amber Amber Rudd has given pension dashboards the green light, the end of the & # 39; £ 20billion mountain & # 39; of forgotten pots that employees have lost sight of.
With the new dashboards, employees can view details of all pensions they have collected from different companies and from different providers in one place online.
Mrs. Rudd said: “With record numbers saving for retirement due to our revolutionary reforms, it is more important than ever for people to understand their pensions and prepare for financial security in their later lives.
Green light: Minister Amber Rudd of Work and Pensions has given the dashboard the green light for the go-ahead
& # 39; Dashboards have the potential to transform the way we all think about and plan for retirement by providing clear and simple information about retirement savings in one place online.
& # 39; I look forward to seeing the first industrial dashboards later this year. & # 39;
In its response to an earlier consultation on the dashboards, the government said today that it would propose legislation to encourage & # 39; all pension providers to make consumer data available & # 39 ;.
The expectation is that most systems will be ready to go live within a period of three to four years.
State pension data will also be included in the dashboards as soon as possible.
All of these details may seem a bit dry, but retirement dashboards can help employees dig up lost pens from different companies, often for decades.
At present, when people build up savings with different employers for when they retire, they can only view each pension pot separately.
To put the problem in the right context, recent data from the Association of British Insurers showed that more than 1.6 million pension pots & # 39; lost & # 39; were worth around £ 20 billion.
The original prototype: the industry came up with a pension dashboard to show employees all their pension sponsoring details
Tom Selby, senior analyst at AJ Bell, said: “The introduction of pension dashboards has clearly been shunted to the priority list as Brexit's vice-like hold on parliament is getting tighter.
& # 39; In the current political climate, there is no guarantee that the Pension Account should oblige schemes to provide data to pensions. Dashboards will see the light in 2019.
& # 39; The fact that the policy has been supported by the parties, however, suggests that it will probably become a reality in the end – we simply do not know who will introduce it or when.
& # 39; Nevertheless, dashboards represent a potentially important positive step forward, both in terms of uniting people with lost pensions and encouraging longer-term commitment. Over time, dashboards can potentially be expanded with other saving vehicles and financial products, allowing people to effectively view all their finances in one safe place.
& # 39; The pragmatic approach of the DWP with regard to early testing is sensible, although it must be ensured that users are fully aware of Dashboard limitations. Ultimately, this will be a starting point for most people dealing with their retirement pots, rather than an all-singing, all-dancing solution.
& # 39; Government, regulators, and business should seize the opportunity offered by launching dashboards to assess the behavioral effects of presenting information to customers in different ways.
& # 39; The current disclosure regime creates clumsy packages of pension documentation that very few people use in a positive way. By focusing on simplicity in the initial roll-out of Dashboards, we hope that the DWP paves the way for a more fundamental review of public disclosure of pensions in general. & # 39;
Yvonne Braun, director of the long-term savings and protection policy at the ABI, said: & # 39; The digital retirement genius revolution is finally here.
& # 39; All documents are put in place to provide the easy access to pension information that everyone needs and that the pension sector is so eager to deliver. & # 39;
Meanwhile, Helen Morrissey, a pension specialist at Royal London, said: “If done correctly, the dashboard will give people a full understanding of what they have saved.
& # 39; If it is in a hurry, or we do not have all interested parties on board from the outset, there is a risk that we cannot deliver something meaningful or credible and the ability to engage people will be lost. & # 39;
Top-notch firms that were leaders in the development of dashboards initially warned that legislation may be needed to enable all schemes and make the tools as complete and useful as possible for savers. Today it is now clear that providers are being forced by the government to enter data into the dashboards.
Meanwhile, the fear that scammers can hack or exploit the information on dashboards to steal people's pension money boxes has been heightened at a time when the government and other authorities are fighting the scourge of pension fraud.
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