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Dashboard Ready

17 November 2017

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The pensions dashboard project is well underway; but what do consumers think and how can schemes prepare ahead of the launch?

Since the government announced the pensions dashboard in 2016, work has been undertaken by the pensions industry to make the concept a reality by 2019.

Although for some, the lack of immediate commercial benefit might temper their enthusiasm for the dashboard concept, its universal appeal to consumers is likely to convince doubters of its overall value.

In terms of its value to consumers, the numbers speak for themselves. More people have more jobs throughout their careers than ever before. Add auto-enrolment into the mix and your average millennial is looking at accumulating a collection of 10-15 different pension pots over their lifetime. The need for those consumers to have access that information quickly and easily is obvious, and it's only going to increase in over time.

So far, the dashboard project has been largely well-received by the industry, with most large pension providers already on board, including Standard Life, Legal & General, Aviva, Prudential and Now Pensions, to name a few.

The first phase of the project, which launched in September 2016, was designed to develop and test the technology that would allow data from multiple sources to be collected and presented to consumers. The scale of the delivery and collaboration of data is vast, with each scheme having its own set of nuances and complexities to be considered.

Carolyn Jones, head of pensions product, Fidelity International, was part of the team selected to work on the prototype project. The prototype was delivered in April 2017 and since then the team has been investigating further what both industry and consumers are looking for from the dashboard.

"There's a consumer view and then there's the industry – for example how are they going to respond, are they going to do this voluntarily?" she said.

The research found that from an industry perspective, including insurers, trustees, public and private sector schemes, most could see value of a dashboard to consumers – and this was significant enough to drive participation.

From a consumer point of view, full coverage, i.e. all schemes participating in the dashboard, will be essential to build trust and offer transparency.

So, wherever you stand on the dashboard concept, with compulsory participation looking likely and the dashboard set to be launched on schedule - preparation is essential.

Stay informed:

  • Find out if and when the dashboard will be made compulsory
  • First provider: Make your data is available early - it looks good to your members and helps build trust
  • Get online: Members will be able to click through to your scheme from the dashboard. Build a post-dashboard landing page and think about the immediate message you want to give them
  • Movers and shakers: Get ready for a high number of low value transfers as people will want to consolidate
  • Right data: Consumers will want to know simple data, such as the amount they will have in retirement or how much can they draw out now – make that data available

Lindsay Sharman

pensions@wilmingtonplc.com