“Dashboards will finally end the invisibility of (pensions) inadequacy” was the hard-hitting takeaway message from Richard Smith (Volunteer Independent Chair of the Pensions Dashboard Operators Coalition) during yesterday’s Commons Select Committee, which offered insights into the UK's progress towards implementing pensions dashboards. Representatives from consultancies, technology providers, and pensions administrators were questioned by the Work and Pensions Committee in Parliament, which highlighted both challenges and opportunities in the development of commercial pensions dashboards.
Commercial pensions dashboards are necessary for widespread adoption and effectiveness of the Pensions Dashboard initiative and to drive better outcomes for consumers while addressing the pensions savings gap faced by the UK. While the Government-backed Money Helper Dashboard offers a solution for finding and viewing pensions, it is commercial pensions dashboards that will drive broader engagement by providing context sensitive actions as well as being more readily available by integrating with apps that users already trust and use regularly.
Examples were drawn on from European countries who already have advanced pensions dashboards and usage is significantly higher amongst commercial pensions dashboards than government pensions dashboards.
With tools that aggregate pension data into a singular view, individuals will be able to easily assess whether their retirement provisions are sufficient, bringing much-needed visibility to potential inadequacies in savings. Commercial dashboards also have the potential to not only present users with their pension status but also connect them to actionable solutions, such as increasing contributions or consulting financial advisors to improve retirement outcomes.
The session highlighted the restrictive regulations and ambiguous timelines set by the Government, which means private sector firms are struggling to justify investment in dashboard development, despite the desire to do so. This uncertainty may delay access to vital services to British consumers.
For the benefits of pensions dashboards to be realised, this heavily depends on overcoming current regulatory and developmental challenges in the commercial sector. By doing so, private sector dashboards can significantly strengthen individuals' financial empowerment and preparedness for retirement. Advancing collaboration and refining regulatory policies are pivotal steps toward achieving these goals.