PIMFA responds to Government publication of Pension Dashboard consultation
3rd December 2018
PIMFA – the wealth management and financial advice association – welcomes the publication of the government’s consultation looking at the feasibility of a pension dashboard or pension dashboards. We have been clear throughout this process that there is an obvious need for a pension dashboard service for consumers – who, we believe, would benefit from such a service at the point of retirement. Whilst the news of this development is extremely welcome, we remain concerned about the potential impact multiple dashboards may have on consumer decision making.
Commenting on the release, PIMFA CEO Liz Field said:
‘We have been clear throughout that the existence of a pension dashboard would act as a vital tool in helping individuals plan their retirement as well as potentially reducing the initial cost of advice for millions of individuals who may feel they are not wealthy enough to benefit from regulated financial advice. Today marks a step in the right direction for government pension policy and finally begins to connect the dots between automatic enrolment and freedom and choice in particular. The government deserves an enormous amount of credit for listening to industry and largely delivering a workable model that can contribute to delivering good consumer outcomes in the future.’
‘However, whilst we recognise that we are still in the early stages of implementation we do have some immediate concerns for the dashboard as laid out in the consultation paper. We believe that the decision to build an initial non-commercial dashboard is the right one, the Single Financial Guidance Body will operate it in the public interest with no underlying benefit to itself. In our view there is no need to expand upon this. As we set out in our response most recent iteration of the Retirement Outcomes Review, we are concerned that the provision of guided retirement pathways for consumers will see the vast majority of individuals replicate the sort of disengaged behaviour that we saw prior to the implementation of freedom and choice – in that more often than not they will remain with their existing provider without shopping around. We believe that the provision of multiple dashboards provided by providers will in the long run encourage consolidation with existing providers and the use of their guided pathways. We would urge the government to re-consider what the impact that multiple dashboards may have on consumer decision making.’
Finally, whilst we do understand the sensitivities around implementation, we would urge the Government to make a firm commitment rather than expectation of the inclusion of State Pension entitlement.
Notes for Editors
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies. Associate members provide professional services to the PIMFA community.
- PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
- PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association going back for 27 years – read more.
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