Commenting on the Pensions Dashboards Programme (PDP) Call for Input on Staging as it reaches the deadline for response, Karl Lidgley, Client Manager Third Party Administration at Hymans Robertson, says:

“We fully support the PDP’s aim of “enabling individuals to access their pension’s information online, securely and all in one place which will help supporting better planning for retirement and growing financial wellbeing."

“The fact that a vast number of pension plans are lost or unclaimed is a vital factor in the timing of the stages for the rollout. The ABI estimated that there are 1.6m lost pensions plans with the Government predicting there will be 50 million dormant and lost pensions by 2050. This orphaned pension problem is only going to increase due to a rise in job changing, particularly as a result of the coronavirus pandemic, making it an even more urgent issue.

“The initial dashboard should focus, on the “find” function for consumers with the “view” functionality to be developed later. A simple “find” service will allow consumers to identify their pension providers and put them into contact with the administrators. This could be rolled out in the timeframes outlined in the call for input and allow the industry time to develop a standard approach to reporting the Estimated Retirement Income (ERI) required for the full “view” functionality.

“We agree with the opinion outlined by PASA that for the Pensions Dashboards to be successful the display of ERI for members should be disconnected and separate from the initial rollout. Instead, time should be taken to develop and legislate for a new standard definition by benefit type.

“The Dashboard program is currently relying on existing disclosure regulations which don’t provide a uniform way of displaying ERI information to members. Without this, members will be unable to understand and compare their benefits, which could lead to poor decision making and disengagement for Pensions Dashboards.

“It is vital that this standard and more uniform ERI presentation is easy to understand and easy to compare for members and agreed by all providers from the start. Which is why we believe there should be clear guidance, and more probably legislation to ensure that this is consistent.”