Don't go tepid on pensions dashboards preparation

17 Jan 2025

First seen on Money Marketing

When phrases such as pensions dashboards become part of your everyday vocabulary at work, it’s easy to forget those words may mean very little to non-industry people.

To test this, I asked some members at my local running club to tell me what they think about the idea behind pensions dashboards. I was met with a fair few blank faces looking back at me. In fact, no one knew what I was referring to. I imagine this would be a representative response from much of the general public. If they have come across the term, they may not know what is meant by it or understand why it could be of benefit to them.

The technical term is relatively new, although the concept has been around for longer (it’s been in various discussions since the early 2000s). And while within the industry there has been plenty of talk and more recently action about it, the start line is still clearly in our rearview mirror.

Seeing is believing, and as pensions dashboards are not something people can see for themselves yet, the term could be brushed off as yet another piece of financial jargon.

Increasing pensions engagement

The potential for pensions dashboards to support millions of people to plan for their retirement is really what we need to focus on.

When research from Nucleus points out that only 34% of UK adults are confident they have enough time to save for the retirement they want, having better access to clear and simple information about their multiple pension savings, including the State Pension entitlement, will enable them to make more informed decisions. It might not single-handedly solve the engagement problem, but a lot can be said for being able to see important information presented in an easy-to-understand way.

Have you ever found some change down the back of the sofa, or been pleasantly surprised when you put on a coat you haven’t worn in a while only to find some money in a pocket? Imagine there are larger sums you are entitled to just waiting to be found. It’s not every day you could potentially find several thousands of pounds you have earned down the back of the sofa. Pensions dashboards have the potential to be the proverbial sofa.

As I’m so heavily involved in the programme to deliver pensions dashboards, it’s easy to forget the reasons behind them in the first place. I feel that in order for people to plan confidently, they need to know where their money is and have an idea of how much they have or what they are likely to need for their desired retirement.

Research from the Institute for Fiscal Studies (IFS) states we need to be saving more and earlier, but how to do this when engagement in pensions is low, with further research from My Pension Expert showing 27% haven’t looked at their pension in at least a year.

Pensions Dashboards connection guidance

It’s vital we use the opportunity presented by pensions dashboards to promote the advantages of using them and increase public exposure to the term, so that all the work happening in the background will be put to good use as early as possible when they go live.

Yes, there have been delays to the project and it’s been a bit of a stuttered start, but the important thing is it’s happening. Now is not the time for schemes to switch off and lose sight of the end goal. As with any big project, there are challenges to overcome. We all have a part to play in giving pensions dashboards the attention they deserve.

There has been a significant amount of investment and industry collaboration in getting us this far and given the implementation timeline, we all need to do what we can to get the project over the finishing line.

Pension providers and schemes are required to connect to government digital architecture by 31 October 2026.

It may sound like a way off yet as we still have to get through 2025 first, but there is plenty that needs to happen between now and then. Schemes have to keep in mind their connection guidance dates, which for many big providers means connecting by 30 April 2025 – that’s not very far away at all.

A lot of work is happening in the background to get schemes ready and connected ahead of those deadlines.

Getting Pensions Dashboards Ready

Getting your data in order

It’s vital providers get their data in order, have a trusted partner to work with and are in a position to actively try to connect by the April deadline.

Even if they can’t physically do it by that point, they need to be demonstrating that they have plans in place and are working towards it. Those schemes not doing anything to ready themselves are likely to find themselves in hot water.

None of us can afford to go tepid on pensions dashboards. We’re passionate believers in the power of technology. Now we need to unleash it. There is light at the end of the tunnel.

I’m hoping that when I ask my fellow runners in a year’s time if have they heard of pensions dashboards, there is more awareness of what they are and what they mean for them.

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