The UK Government has announced delays to a planned timetable which will eventually allow people to view all their pension pots, including State Pension, online in one place. The Department for Work and Pensions (DWP) said that more time is needed for the complex build of pensions dashboards to be set up.
Pensions dashboards would help people to plan for their retirement and see where there may be shortfalls they need to make up. Pension schemes were due to start connecting to dashboards from August 31, 2023, and dashboards were expected to be available to the public next year.
Some experts expressed frustration at the latest announcement, saying the industry has been left in "limbo", while others said a reset is appropriate to work through complex technical solutions and challenges. Former pensions minister Sir Steve Webb, who is now a partner at consultants LCP (Lane, Clark and Peacock), said: "This latest delay in the rollout of pensions dashboards to the public is deeply frustrating.”
He continued: “The end goal, of a website where people can see all of their pensions in one place, would be of huge value to pension savers. It will help people to find pension pots they have lost track of and will enable them to rationalise and make best use of the pots that they do have.
"The Government must ensure that any delay is kept to an absolute minimum. The lack of a firm new timetable will leave industry in limbo and this uncertainty must be resolved as soon as possible."
Rachel Vahey, head of policy development at AJ Bell, said: "This is a huge let down for consumers. Dashboards had the potential to empower pension savers but they've been badly let down by a project that has over-promised and under-delivered."
She added: "The public and industry now are left rudderless, with no idea of the current state of play." Ms Vahey also said there is now "no date" for the dashboards' launch - with "major doubts about whether the project can be delivered before the next election".
In a written statement on March 2, DWP Pensions Minister, Laura Trott MP, said the project is a significant undertaking, "requiring the development of new technology that will permit individuals to find their pensions by searching thousands of pension schemes which collectively hold millions of pensions records".
She added: "More time is needed to deliver this complex build and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture.
"Given these delays, I have initiated a reset of the Pensions Dashboards Programme in which DWP will play a full role. The new chair of the Programme Board will develop a new plan for delivery."
Lily Megson, Policy Director at My Pension Expert, said: “The Pension Dashboard Programme is an incredibly ambitious project and I applaud the government for not rushing to push out an inadequate project, it must be done right. That said, this delay is a disappointing turn of events. Now, the government must ensure that consumers have the right financial support to help them achieve the financially secure retirement they deserve.
“My Pension Expert’s research found that just 35 per cent of UK adults believe they will be able to retire when they want to. If the Pension Dashboard is facing indefinite delays, the government must ask itself what further support can be provided in the interim and one option could be ensuring all consumers are aware of independent financial advice, which can help them to better understand the state of their retirement finances and make informed decisions about their money.”
She added: “The Pensions Dashboard Programme has the potential to transform pension engagement - and I hope the government soon outlines when we can expect the new launch date. Until then, I implore ministers to ensure support for savers remains a top priority, otherwise, we risk seeing the UK’s confidence in its financial future continuing to slip.”
Becky O'Connor, director of public affairs at PensionBee said: "It is disappointing but not wholly unexpected that the Pensions Dashboard Project - beset with difficulty from the beginning - is facing another delay. People's inability to keep track of their pensions is a growing problem."
You can read the full DWP statement online here.
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