Progress At Last For Pensions Dashboard

Back in 2018, we were lauding the arrival of a new pensions dashboard – probably the following year. Well, we got that one wrong!

A whole seven years later, we thought it was time for an update. Just last month, the first pension provider successfully completed its connection and it is now thought the functioning dashboard will be available to the public by the end of 2026.

So, what has been happening lately and what’s next on the development list?

Say goodbye to lost pensions

The concept behind the pensions dashboard is great. One central hub where everyone can keep track of the schemes they join throughout their career, making it easier to plan for the future. What’s not to like?

Once all providers are connected, the dashboard will allow consumers to view basic information about any pension scheme into which they have been enrolled. This includes final salary occupational schemes, defined contribution schemes, personal pension plans and workplace pensions.

When a user logs on, the system will send a query to all providers and produce a list of schemes that match the individual’s details. This will allow them to see how much they have sitting in each pension, the level of income they might receive and what they can expect from the state when they retire.

Momentum is building

In relative terms, we have seen significant progress this year in the development of the pensions dashboard.

The FCA has outlined its regulated activity, which includes connecting to the Money and Pensions Service (MaPS) dashboard’s digital architecture. By interlinking the systems, it will allow the pensions dashboard to work seamlessly, providing the comprehensive overview we all desire.

The regulator has also set out what it expects of the firms carrying out regulated pensions dashboard activities. This will ensure the services provided are secure, reliable and user-friendly. The MaPS ecosystem will be a crucial component of this initiative.

Legal and General became the first pensions provider to connect to the dashboards programme in April, marking a significant breakthrough on the progress front. However, there are around 3,000 schemes and providers to connect in total. A big ask by October next year!

Technology available now

Current research suggests 81% of working-age adults are unsure about the location of all their pensions, contributing to an estimated £3.1 billion sitting in lost pots in the UK.

Since its find and combine service launched in 2022, Raindrop has successfully retrieved £500 million in savings from nearly 45,000 lost pensions. Just last year, the platform recovered £251 million – a 61% increase on its recoveries in 2023.

On average the pension pots Rainbow located last year were valued at £14,000, with the largest single pension worth £656,000. This just goes to show the potential the dashboard has to reshape the future of retirement planning and revolutionise pension saving.

Raindrop’s technology can already be used as a powerful advisory tool, helping you recover and consolidate clients’ lost pensions, gain a clearer view of their financial situation and address concerns about inadequate retirement funds. In turn, this enables you to offer a more personalised and strategic service.

Transforming the planning process

There is no doubt the pensions dashboard will transform how consumers manage their retirement savings, providing a secure and comprehensive overview of all their pensions.

If progress continues at the current rate, it is poised to become an essential tool for anyone looking to take control of their retirement planning. To read more about how it was originally conceived, our previous blog can be found here.

If you would like to discuss integrating the pensions dashboard into your systems and processes and the compliance issues it may raise, don’t hesitate to contact us on (0161) 521 8641 or email: info@b-compliant.co.uk

Vicky Pearce, Director, B-Compliant.