Industry takes the lead

Esther McVey’s announcement that the government supports an industry-led pensions dashboard ended weeks of uncertainty and media speculation over whether the secretary of state for work and pensions wanted to kill off 
the project.

This is good news for consumers – who would benefit greatly from being able to keep track of their pension pots more easily, making it more straightforward to plan for retirement.

People have 11 jobs on average during their working life, meaning they could have as many pension pots stacking up during that time.

Research by the People’s Pension found that more than seven in 10 people surveyed want to be able to see all of their pensions in one place, and one in five respondents have lost track of 
a pension.

But while the government has allayed some concerns, it also seems to have taken a step back.

Rather than pushing for a government-delivered dashboard, McVey has called on the industry to pick up the baton and take the lead.

Experts have pointed to the multiple challenges ahead, from data accuracy and IT stumbling blocks to the need for innovation and creativity to deliver something suitable.

But the key question is whether the government will mandate all pension providers to submit necessary information to the project.

Earlier this year, the Department for Work and Pensions agreed that research and evidence present a strong case for compulsion, but the pensions industry is still waiting with anticipation for its feasibility report to find out more.

The success of the project very much depends on how complete its coverage is. Experian research shows that one in four people would be unlikely to return to the dashboard if they did not see all the pensions they expect.

Forcing every provider to comply, as well as demanding legacy defined benefit and state pension data, would lead to a robust dashboard, but getting there will be no mean feat, and requires government commitment.

Sophia Imeson is associate editor at Pensions Expert. You can follow her on Twitter @SophiaImeson and the team @pensions_expert.