Millions of people will be able to check the size of their retirement income at the stroke of a keyboard under plans being announced by Theresa May today.
The first so-called ‘pensions dashboard’ will be launched next year, allowing people to access the total combined value of separate pension pots, plus the state pension, in one place for the first time.
Ministers say the reform is essential to alert people if they need to be paying more to ensure they have enough income after they retire.
The first so-called ‘pensions dashboard’ will be launched next year
Over a quarter of people aged 55 and not yet retired say they do not know the full size of their pension savings. The dashboard idea was first floated by George Osborne when Chancellor in 2016, but stalled when Esther McVey became Work and Pensions Secretary.
Now, following Ms McVey’s resignation from the Cabinet over Mrs May’s Brexit plan, No 10 has ramped up preparations.
Ministers will launch a public consultation over how the new ‘pensions portal’ will work in practice.
Mrs May said: ‘This Government is committed to helping people plan for their future and making sure they can look forward to a more secure retirement that they’ve worked all their lives for.
‘It needs to be easier for people to be able to make informed choices on their pension pots. That’s why bringing pensions online will transform retirement planning – giving people straightforward access to all their pension information in a single place. ‘I welcome the industry’s commitment to make this new technology a reality,’ she added.
Guy Opperman, Minister for Pensions and Financial Inclusion, said: ‘Pensions dashboards are another major milestone in our radical pension reforms, harnessing innovative technology to benefit savers.
Bringing pensions information into the digital age has the potential to revolutionise the way we all plan for later life.
‘People, young and old, should have all the help they need to get ready for retirement and, working with industry, we will ensure that they do.’
Officials said the Government would be working closely with the pensions industry to offer a range of dashboards for people to choose from.
The development and design of dashboards would be pensions-industry-led and backed by legislation where necessary.
The Department for Work and Pensions would also liaise with the Pensions Regulator, the Financial Conduct Authority and industry organisations to make sure that appropriate controls were in place to protect consumers and their personal information.