What is the pensions dashboard?
Touted as a game-changer in how we manage our savings, the pensions dashboard initiative has been plagued by delays. So, what is it and when will it launch?
If you’ve ever wondered how you could see all your pension savings in one place, then you may soon be able to as the long-awaited pensions dashboard edges closer to launch after almost 10 years in the making.
The long-awaited launch of the UK’s ‘pensions dashboard’ has gained vital momentum this month as user testing is now underway and may finally be ready for launch by next summer.
The government confirmed that 85% of private pension records – around 70 million – are now connected to the system, putting it on track to meet its statutory deadline of all schemes being linked by 31 October.
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The pensions dashboard is an initiative from the Department for Work and Pensions (DWP) and MoneyHelper from the Money and Pensions Service (MaPS) that aims to give people access to all their pension information in one easy-to-use online portal.
But the dashboard has been plagued with delays, and pressure has been rising for its launch as it provides people with an essential tool for retirement planning.
The DWP said the first phase of testing with pension company employees and industry experts was complete, with the second phase – testing with 2,000 consumers – underway.
AJ Bell’s head of public policy, Rachel Vahey, said: “The pace at which the pension dashboards project has moved forward has often felt glacial at best. For long periods, previous governments appeared to park the project altogether, filing it in the ‘too difficult’ pile and leaving it to someone else to deal with.
While she acknowledges that delivering a project of this scale is not easy, she added it had been “beset by endless delays and restarts”.
“But it now seems to finally have some long-overdue momentum, with testing going ahead and tens of millions of records connected,” she said.
“Completing the first phase of testing is a massive step in the right direction. The pensions industry was holding its breath, hoping the project would negotiate that hurdle successfully and without any major delays, which is exactly what has happened.”
With real progress now being made on the project, and the DWP, MaPS and the pensions industry keep to maintain momentum, Vahey added: “Provided progress isn’t hindered by any serious bumps in the road, we should get a full timeline for a public launch date later this year.”
Once all pension schemes have connected and the dashboard has been thoroughly tested, the DWP is expected to share a public launch date.
“That probably won’t be until mid-2027 at the earliest, but there is now some light at the end of the tunnel,” said Vahey.
The dashboard will let people see details of all their pension plans in one place – including state, workplace and private pensions.
It will show the scheme or provider and their contact details, as well as the current value of the pension and the projected income it could provide in retirement.
Initially, people will be able to access a version of the dashboard offered by the MaPS, hosted on the MoneyHelper website. Over time, other companies – such as a pensions provider, employer or bank – will be able to offer their own dashboard.
How does the pensions dashboard work?
When users first sign up, they may have to take a photo of their ID and themselves as part of a secure ID verification process.
The dashboard will then take the person’s personal information (name, address, date of birth and ideally National Insurance number) to cross-reference with any UK pension schemes signed up to the project to see if they have information for that person. The dashboard will then show the individual any relevant pension information it has access to.
Giving people access to an ‘all in one’ view of their pensions information will be a huge step in helping people engage with their retirement savings.
Vahey said getting your pension sorted is one of the most valuable personal finance tasks anyone will ever likely do, yet still many people put it off.
“Dashboards will make it much easier for people and should eventually become a tool that millions of people use to help organise their finances and, in many cases, switch pension accounts to one with better service, pricing and investment choices if they aren’t happy with the pension providers they’ve got today,” she added.
The programme has been in the works since 2016 and should help savers navigate a complex pensions landscape.
Not only will it help you track down any pension pots you may have forgotten about, but it will also help you better understand the value of your pension. This means you will be better placed to make effective decisions about managing your money in later life.
The final bill for the project has been estimated to be an eye-watering £289 million.
Data suggests the scheme is desperately needed, with misplaced pension pots becoming a bigger problem. The Pensions Policy Institute (PPI) estimates there are now around 3.3 million ‘lost’ pension pots, containing around £31 billion of assets.
With so many pots unaccounted for, simplifying the process of people accessing their pots could be a game-changer for savers.
But beyond giving you better access to your nest eggs, it is hoped the programme will boost engagement with pensions and stronger retirement planning.
