Why do we need Pensions Dashboards?
As you work, you try to save money for the future in a pension.
You may have many jobs during your lifetime. That may mean more than one type of pension and many different pension pots to think about – including the State Pension.
At the moment, you usually look at these pension pots separately. That makes it hard to work out how much money you’ll have when you stop working.
Pensions Dashboards will let you see all of your pension savings at the same time. You can choose which Pension Dashboard you use.
Government, regulators, and businesses in the pensions industry are all trying to make Pensions Dashboards available online from 2019.
We know that privacy is important. Keeping your personal information safe will be a priority for all of the Pensions Dashboards.
Pensions dashboards will show you what you’ve saved so far. They’ll also show you an estimate of what that may be worth in the future.
For more information you will need to speak to the pension providers direct, to one of the free advice services, or to a financial adviser.
A financial adviser can help you plan ahead and explain what happens if you take some of your pensions as cash or income.
Pensions Dashboards will make life easier for everyone
Pensions Dashboards will make life easier for everyone, showing how much you’ve already saved for your retirement.
That will include most final salary schemes (known as Defined Benefit), most investment-based schemes (known as Defined Contribution) and any State Pension you can claim. If you want to check now, you can check your State Pension entitlement here.
How the Pensions Dashboards will work
All of the Pensions Dashboards will work the same way. They will all find your pensions and they will all be secure:
- Collecting your details and checking your identity
- Getting your approval to securely share that information
- Looking at millions of pension plans to find all of yours
- Showing you all of the details, all in the same place
It will usually take a few seconds to track down all of your pensions, but everything will depend on where your pensions are. Sometimes it may take a few days.
Pensions Dashboards will always keep you updated and give you the contact details for the pensions they find.
What Pensions Dashboards will show you
Pensions Dashboards will look for pension pots that match your details.
When they find those pension pots, they’ll show you the most recent valuation and when that valuation was made. The pension provider’s contact details will be shown, too.
Valuations may have been done some time ago. You may want to ask that company directly for a more recent valuation. A financial adviser can also do this for you.
Below is an example of the type of report you might get back:
How many Pensions Dashboards will there be?
There will be more than one Pensions Dashboard.
It will be up to you, which one you want to use. Your bank may have one. Your employer may have one. An advice service may have one.
There will also be Pensions Dashboard apps you can download to your phone.
A Pensions Dashboard Project Group is making sure that everything will link together safely and smoothly. This Group is also recommending the standards that all Dashboards and pension schemes will have to meet for sharing information.
What is the Pensions Dashboard Project Group doing?
We are the group that’s making Pensions Dashboards a reality. We are supported by the government and our members come from right across the pensions industry.
Our aim is to make it easier for you to find out how much you’ve saved for retirement.
Many of the UK’s best known pension providers are supporting this project.
About the Pensions Dashboard Prototype
The government asked the Association of British Insurers to lead a team that could design, develop and demonstrate a Pensions Dashboard Prototype for Spring 2017.
This is a milestone on the journey to making Pensions Dashboards available in 2019.
Pensions Dashboards will need to access details of about 80 million pension pots if they are to find all pensions. With your consent, thousands of pension schemes will need to share your information with you in the same simple way.
Every Dashboard has to be safe, secure and easy to use. This ‘everyone shows information the same way’ approach is new in the pensions industry.
The Pensions Dashboard Prototype has been developed with the help of six leading technology firms. It will be reviewed by the pensions industry over the coming months.
The industry and government hope to have Pensions Dashboard services ready by 2019.