By Dale Critchley, Workplace Policy Manager, Aviva
They’ve requested a search, found their pots and seen the combined value of their pensions on a single screen for the first time.
Testing is set to accelerate over the coming months with thousands of members given the opportunity to see all their pensions in one place. This will test the infrastructure more fully and provide important feedback from people of all walks of life on what they understand about what they are being shown, and if it meets their needs and expectations.
The biggest question most people will have is when will the dashboards be available to everyone? It’s unlikely we’ll see any announcement while testing is ongoing as it will be better to announce a definite date than one that is contingent on testing and subsequent development being successful. When the bell sounds, we want to be sure that we are on the final lap. Realistically, we can expect that signal to come later this year, with the go live date being in 2027.
There are still some development hurdles to negotiate. The Pensions Dashboards Programme is currently consulting on changes to the reporting standards. These set out the data that pension schemes must provide to the dashboards on their performance and compliance. These include meeting the requirement to respond to 99.9% of data view requests within ten seconds. Any changes will require provider systems to be reconfigured, and tested, to ensure compliance.
While reaching the go live date might represent the finishing line for the Dashboards Programme, it will be a baton transfer for pension schemes. Aviva is already preparing for the launch, ensuring the right people and processes are in place to support the anticipated increase in consumer engagement once the Dashboard goes live.
The regulators are also getting on their marks. The FCA have recently consulted on how revised rules can prompt improved decision making when scheme members are considering transferring their pension. The obvious risk is that individuals who are keen to have their pension in one place will move their pension money without fully appreciating the potential downsides. The FCA are keen to promote side by side comparison of key drivers of good outcomes, such as fund performance and charges, at retirement options, guarantees and protections, as well as drivers of engagement like apps and website capability. Many providers offer this already, but it isn’t universal.
The Pensions Dashboards Programme is a fantastic achievement but its success in driving better outcomes will depend as much on the success of the handover to pension schemes, as the years of development to date. Schemes may want to consider providing information and education ahead of pensions dashboards becoming available, but also once it is in place. It’s a huge opportunity for people to make positive, well informed, changes to their pension plans, that go beyond consolidation.
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