Kate Smith, Head of Pensions at Aegon: “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. Pension schemes, providers and the State Pension won’t be compelled to connect to Pension Dashboards until 2023 which means that people will have to wait longer to re-connect with their pensions using dashboards. Critical mass is needed from day one, to allow people to find the majority of their pensions. Compulsion 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.
“It's good news 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. There’s a great deal of work to be done between now and 2023, not only for the Pensions Dashboard Programme, but also for all pension providers and schemes, fintech, the government and regulators. So far there has been incredible engagement from all stakeholders showing a genuine willingness to push Pension Dashboards forward and improve people’s financial wellbeing by providing an informed and complete picture of their retirement savings.”
David Fairs, Executive Director of Regulatory Policy, Analysis and Advice at TPR, said: "We welcome the DWP’s Stronger Nudge as another key step to help ensure savers make informed retirement choices by using the free guidance available from Pension Wise. We will be introducing guidance for trustees to help implement the measures so that seeking guidance becomes the norm for pension savers when planning for the future."
Nigel Peaple, Director Policy and Research, PLSA, said: “Today’s publications by the Pensions Dashboards Programme (PDP) provide a welcome update about the significant progress the PDP has made over the last six months. The PLSA and its members have been calling for a clear and reasonable project timeline that gives them the certainty they need to prepare for onboarding.
Therefore, I am delighted to see that today’s Progress Update Report provides a high-level timeline for the Programme as a whole.
“PLSA research suggests that most (75%) pension schemes – both DC and DB – believe they will need up to two years to prepare for onboarding. The fact that mandatory onboarding will not begin until 2023 is a recognition of the significant challenges schemes and providers will face in preparing their data. I am pleased to see that these challenges are clearly articulated in the PDP’s Call for Input response and the PWC research the Programme has published.
“We continue to believe that pensions dashboards are key to improving saver engagement with their pensions and helping them to plan for retirement, and look forward to contributing further to the PDP’s work.”
Helen Morrissey, pension specialist at Royal London, said: “After already progressing at a snail’s pace for some time it is hugely disappointing to see this project further delayed. Of course such projects are complex but the potential that dashboards have to help people take control of their retirement planning is huge and must be grasped. Every delay risks letting down a generation of savers.”
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