An update on the progress of the long-awaited pensions dashboard, from the Money and Pensions Service (MaPS), suggests retirement savers may not see it in action until 2023, with voluntary onboarding from 2022.
For many savers, it can be difficult to keep track of the various pension pots they accrue during their working life and so the dashboard will bring details of all these pots together in one place, and updated in real time, for an individual to see.
First announced at Budget 2016, the platform was expected to be available by 2019, but a general election, Brexit and the complexities associated with developing such a ‘connected’ system put paid to that.
In its progress report, the MaPS highlights the scale of the task, which involves 52 million adults being connected to up to around 40,000 providers and schemes.
It is hoped that having access to information about lifetime pensions, including state, workplace and private schemes, will revolutionise the way in which savers prepare for retirement, as well as minimise the volume of unclaimed funds.
Minister for pensions and financial inclusion Guy Opperman said: “Bringing information to savers at the touch of a smartphone screen will transform how we all think about and plan our pensions, improving financial resilience for later life.”
In the months ahead, the Pensions Dashboard Programme (PDP) will be agreeing data standards and finalising requirements in respect of the digital infrastructure, before the ‘testing’ phase begins in 2021.
Elaine Shaw, Payroll Manager, comments: “Taking care of payroll for businesses and assisting with the administration of workplace pensions is our day-to-day and so, when the pensions dashboard was first announced at Budget 2016, we were obviously delighted that such a system was being designed with savers in mind.
“Clearly, there have been unforeseen setbacks and it is a shame that the timeline has had to undergo such a significant shift.
“A secure platform, where people can keep track of their lifetime pensions, how much is held in each and, indeed, the funds they can expect to have at their disposal upon retirement, has been long-awaited and will equip savers with a vital tool to help them prepare financially for later life.
“We will continue to follow the progress being made by the Pensions Dashboard Programme with interest.”
Savers can currently trace old pension pots by accessing the Pension Tracing Service here.
How can George Hay help?
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To find out more about how we can help you, whether with payroll or pensions, contact one of the team today on 01767 315010 or by filling out one of our online enquiry forms.
