Further delays appear to have hit the pensions dashboard, with the group tasked with implementing this initiative confirming it will not be fully operational until 2023.
This is the date by which pension schemes will be compelled to connect to the dashboards, giving consumers a comprehensive view of all their pension savings.
This date was confirmed by the Money and Pensions Service, in a regular update on the pensions dashboard programme.
Announcing the update Chris Curry, principal of the pensions dashboards Programme at MaPS, says:
“While dashboards are a simple concept, the delivery of dashboards will be complex and is reliant on collaboration between the PDP and many other organisations across Government, regulators, dashboard providers, pension schemes and providers to complete actions at a specific time.”
Minister for pensions and financial inclusion Guy Opperman adds: “Pensions dashboards will revolutionise retirement saving which is why it’s vital we get them right. I’m encouraged by the progress on the project to date, the sensible timetable for development incorporating testing, rigour and refinement, and the continued collaboration driving this forward.
“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.”
AJ Bell says the government may face criticism for further delays, as originally it said it wanted to introduce the dashboard from 2019.
However it added that given the importance of data accuracy and ensuring maximum participation rushing the introduction of dashboard would be an unnecessary risk
AJ Bell senior analyst Tom Selby says: “Rushing the introduction of half-baked pensions dashboards would have risked causing terminal damage to a project which has the potential to revolutionise retirement engagement in the UK.
“Allowing people to see all their retirement pots in one place is a colossal undertaking, particularly when you consider the hotchpotch of different schemes that exist.
“While most modern platforms are well positioned to do this, some older-style pensions and defined benefit schemes are still administered using antiquated technology systems and therefore face a bigger challenge in supplying data. Ensuring this data is shared in safe manner has to be the number one priority for a project like this.”
Aegon head of pensions Kate Smith says: “Implementing pension dashboards is proving to be an extremely complex but worthwhile challenge as shown by the latest update from Pensions Dashboards Programme.
“The timetable has been pushed out by four years. Although this is disappointing, we believe the delay is worthwhile using the extra time to get things right.”
She adds: “Compulsion [to provide data] will be staged, and it’s important that given the extra time, the staging process is short to gain critical mass quickly and that this is continually monitored. Without this it runs the real risk that people will be put off using pension dashboards.”
She said she welcomed the fact that the first set of data standards will be published in December allowing all pension schemes and providers enough time to get their data in order and be ready by 2023.
Origo managing director Anthony Rafferty “Pensions Dashboards are back in the limelight with the passage of the Pensions Bill through Parliament and now further clarification on the Pensions Dashboards Programme pathway from MaPS.
“The next six months will move the project forward – with procurement of the digital architecture, identity verification, publication of data standards, and development of an onboarding strategy being key practical elements.”
He says MaPS confirms that these will be followed by work on areas such as liability, consumer protection and redress.
Rafferty adds: “Origo has continued to work closely with our development partners since the original prototype project right through to now and stand ready with well formulated technology and service model to support rapid progress.
“We are pleased to see that digital architecture procurement is the next step being taken, with the process starting by the end of this year. The digital architecture is the cornerstone of the dashboard as it is crucial to integration for participants, for testing and to support the provider onboarding exercise.
“It allows also for other key areas which go hand-in-hand with it, such as digital identity and data standards, to move forward.
“That MaPS has stated categorically that it will be taking a user-centric approach – focussed on making Pensions Dashboards easy to use and understand, reliable, consistent and secure – will also ensure consumer outcomes will be front of mind for all companies and organisations involved in developing the dashboards.”