- ABI’s new report makes the case for Private Sector Dashboards and calls on Government to reaffirm its commitment to the initiative
- Private Sector Dashboards essential to reach projected user numbers and recover lost pension pots
- By providing users with the option to take action over their pensions in regulated space, these dashboards will reduce risk of consumer harm
The ABI calls on the Government to urgently reaffirm its commitment to enabling a thriving market of Private Sector Pensions Dashboards in its new report, "Unlocking Pensions Potential: The Benefits of Private Sector Dashboards".1
The report outlines why Government support to instil confidence, paired with an indicative timeline to allow companies to plan to build these platforms, is critical to deliver the transformational benefits of pensions dashboards and improve retirement outcomes for millions of savers.
While the Government-backed MoneyHelper dashboard is a welcome step, the ABI’s report makes the case for its private counterparts. It argues that relying on a single, state-owned dashboard will fall short of the predicted impact as it will only be accessible via one website. Users now expect app-based, integrated digital experiences, so unless pensions dashboard data is available through services that people already use, its visibility and convenience will be limited.
In light of this, the ABI's report argues that a flourishing market of private sector dashboards is essential to reach the projected 16.3 million users annually and help recover an estimated £540 million in lost pension pots.2
Crucially, the ABI’s report outlines the risks of inaction. Private dashboards will equip users with the information and tools to take action regarding their pension. This could be simple administrative changes such as updating personal details, as well as making changes to contributions, accessing their pension, or consolidating pots. With rule changes, firms offering pensions dashboards could offer regulated financial advice and, in future, Targeted Support.3 Importantly, all this will be delivered within strict regulatory standards, offering safe and consistent experiences for users. Offering pension information without the power to act may cause people to resort to less secure methods or be pushed towards unregulated sources of guidance.
To unlock the full potential of dashboards, the ABI calls on the Government to:
- Publicly reaffirm its commitment to enabling private sector dashboards;
- Provide an indicative timeline for application windows and key milestones;
- Over time, work with regulators so that savers are able to take action with their pensions after using a private sector dashboard, in an environment that is safe and useful.
Emily Mae Collins, Policy Adviser at the ABI commented:
Private sector dashboards would be perfectly placed to complement the MoneyHelper dashboard. While MoneyHelper’s dashboard will fundamentally change how people view and engage with their pensions savings, private dashboards will provide the tools to act.
Integrating dashboards into the apps and services consumers already use can dramatically increase reach, and support people to understand their pension in the context of their wider finances. Before long, the rules should also enable people to make changes and do so safely - whether that’s saving more, consolidating pots, or accessing advice and new forms of support. Together, public and private sector dashboards can ensure that everyone, no matter where they are in their pensions journey, has the resources they need to plan for a better retirement.
Emily Mae Collins
ABI Policy Adviser