Welcome to the Pensions Dashboard Prototype Project
About the Pensions Dashboard Prototype Project
During the 2016 Budget, the government made a commitment that Pensions Dashboards would be created by the pensions industry, enabling everyone to view details of all of their pensions together. Government has indicated that every provider will eventually move to sharing data with their customers this way.
The Pensions Dashboard Prototype Project was launched in September 2016 by the Economic Secretary to the Treasury and now, after a busy period of close, cross-industry collaboration, design and development, the Pensions Dashboard Prototype is being demonstrated to government, industry and other stakeholders as an important step towards delivering services.
The need for Pensions Dashboards
Pensions have always been complex. For the lay person, keeping track of those savings is a significant barrier to effective financial management.
The pensions landscape is also evolving; we are seeing increasing longevity, lower guaranteed pensions, and rising consumer expectations.
On average, a working adult in the UK may have 11 different jobs during his or her working life. That means up to 11 different pension pots and the State Pension.
A holistic view is hard to achieve, even with the help of a financial adviser – and perhaps that’s why it is estimated that £400m of pensions are unclaimed.
Role of Pensions Dashboards
Pensions Dashboards will enable people to view a snapshot of their pensions, online, via the portal of their choice.
Some industry experts have suggested that pension dashboards may deliver:
- Better understanding of their likely finances in retirement, based on their current situation
- Clearer grasp of the need for financial advice
- Motivation to increase their pension contributions
- And more inclination to take a proactive role in managing their retirement.
For the industry as a whole, a better informed customer should lead to:
- reduced administration
- increased competition on a level playing field
- greater clarity surrounding the provision and nature of long-term savings products.
Aims of the Pensions Dashboard Prototype
The purpose of Pensions Dashboards is simple: people benefit from seeing all of their pension savings together in a single place.
Having this holistic view helps consumers to stay in touch with their savings, get a sense of their overall readiness for retirement, and feel empowered to make decisions about their finances.
The Pensions Dashboard Prototype Project has three objectives:
- Agree and document the design of an initial infrastructure for data sharing.
- Build and demonstrate a basic working prototype using anonymised data.
- Learn lessons on challenges and potential solutions for future industry-wide dashboard infrastructure.