Thursday 26 May 2016
Money Advice Service on behalf on the Open Identity Exchange publishes recommendations for Pension Finder Dashboard
The Money Advice Service (MAS) and Association of British Insurers (ABI) on behalf of the Open Identity Exchange (OIX)* have today published a report on the latest phase of the Pension Finder Dashboard project. This is a key milestone in achieving the Government’s vision for pensions dashboards by 2019.
The Pension Finder Dashboard alpha project working group, a collaboration of 14 organisations**, recommended that the dashboard could initially be available in one location, however approved finance industry websites and apps should also be able to host it to maximise consumer engagement in the future.
This dashboard will bring together information about a person’s pension savings in to one single place. This will enable people to take control of their retirement savings and transform engagement with their pensions.
This recommendation was based on consumer research carried out to validate the idea of a Pensions Dashboard, and test the consumer concepts such as: consent to find all pensions, share data, and forecasting future income. Respondents were positive about the proposal and thought it might make them more proactive in managing their pensions, seeking financial advice and increasing pension contributions_*_.
The next phase of the alpha project involves developing a prototype dashboard and continuing to work on architecture and governance.
Caroline Rookes, Chief Executive of the Money Advice Service, said: “Pension provision has changed significantly over recent years and it is more important than ever that individuals make good decisions so their money lasts for the full length of their retirement. We know that online banking has empowered people to engage with their money more regularly. We hope that being able to keep track of their pension savings in a single digital place will ensure that people are fully informed and can make decisions about their future savings in a similar way.
“It is vital that consumers remain at the heart of this project. It will also be important for industry, consumer bodies and Government to continue to collaborate and maintain momentum for this project to ensure consumers can access their pensions data by 2019.”
Yvonne Braun, Director of Policy, Long‑Term Savings and Protection for the Association of British Insurers Comments: “The Pension Dashboard will be a critical piece of infrastructure to empower customers to engage much more easily with how prepared they are for retirement.
“The Pension Finder project has laid the foundation for delivering the dashboard and its momentum must continue. The ABI and its members are ready for the project’s next phase to deliver the dashboard as soon as possible.”
- ENDS –
The full white paper report can be found at: https://www.moneyadviceservice.org.uk/en/corporate/publications
For more information please contact:
Notes to editors:
***** The Open Identity Exchange (OIX) is a non-profit trade organisation of market leaders from competing business sectors driving the expansion of existing online services and the adoption of new online products. The principles of collaboration and transparency are at the heart of OIX projects which focus on the needs of users and to work with willing organisations that want to develop open standard based services. For further information, visit oix.org
**Pensions Finder alpha working group participants:
- B and CE
- Government Digital Service
- Money Advice Service
- Standard Life
***Comments from consumer research
“I think it’s a brilliant idea. I think it’s a very, very good idea. I think it can’t come quick[ly] enough for a lot of individuals, and I’d certainly sign up to this tonight
because I think it’s just giving you easy access to something that, at the moment, I think a lot of people are a bit vague on.”
“That’s amazing. Why have they not done it sooner? No, that’s really cool.”
“I’d find [the dashboard] really useful, because [online banking] allows me to do my own accounting without having to go to an accountant to do that. [Online banking] gives me access to the information that I would want, because these are things that I have difficulty with.”
“It’s extremely [useful], because at the moment you’re just having to go to all these different places. It’s partly down to me because I haven’t amalgamated it all, but [the dashboard] would be ideal.”
Action taken in response to dashboard
“I think I would take a more active part of what my pension forecast and take more interest in it, I think. At the moment I’m a bit more laid back. I know I’ve got several pensions and I think it’s obviously doing what it needs to do but I think maybe I need to take more of an active interest in it as well.”
“[I would think about] consolidating, maybe upping my contributions because, yes, right now, I mean, I don’t know what I’ll have at retirement age. So, yes, I might discover that I’m not putting in nearly enough, or less than I thought, and so, up my contributions, look at other ways to get money for retirement.”
“Well, the first thing I’d want to do is see if there are any pensions that I’ve forgotten about. Then the second thing I’d like to do is I’d like to put my income in and find out what kind of premiums I’d have to pay to get a certain type of pension. What my ideal pension would be and how much I’d need to pay to get that, so that I can start planning with the guidelines that are given on there. Then, obviously, to get some of the companies in that would offer that service, then to show what each company offers. That would be useful for me. That’s how I would use it straightaway.”
Pension Dashboard Model
About the Alpha Phase
In 2016 the alpha phase identified the best way to enable people to find their accumulated pensions and see a summary of their values for State pension, Defined contribution and defined benefit pensions. This included:
- Development of a dashboard user interface
- Consumer research
- Development of architectural principles and open standards for various dashboard models
- Production of a white paper which will outline the project, findings, legislative and regulatory challenges as well as recommendations for next steps
About the discovery phase
In 2015 a discovery project with industry participants was conducted to address the problem of ‘lost pension pots’. Previous modelling shows that on average, individuals will work for 11 employers during their working life, meaning that going forward many individuals will acquire multiple pension pots1.
That earlier project tested the hypothesis that “consumers will take action and make informed choices when they are provided with information and data about their pension savings.” The findings demonstrated that matching people with their defined contribution pension pots and presenting the results in a dashboard were important to consumers and could lead to changing their behaviour when engaging with pensions. Full details of the Discovery Project research can be found here: http://oixuk.org/?page.id=1877
Out of this work was born the next phase of the project or the “Alpha Phase” as it has become known.
About the Money Advice Service The Money Advice Service is an independent organisation. It gives free, unbiased money guidance online at moneyadviceservice.org.uk or via free phone on 0800 138 7777. Debt advice is also provided through a variety of partners across the UK. The Service was set up by Government and is paid for by a statutory levy on the financial services industry, raised through the Financial Conduct Authority. Its statutory objectives are to enhance the understanding and knowledge of members of the public about financial matters (including the UK financial system); and to enhance the ability of members of the public to manage their own financial affairs.
About the Association of British Insurers
The Association of British Insurers is the leading trade association for insurers and providers of long term savings. Our 250 members include most household names and specialist providers who contribute £12bn in taxes and manage investments of £1.9trillion.
1 “Making automatic enrolment work by A. Boulding, D. Yeandle et al