The Government is under pressure to reaffirm its commitment to private sector pensions dashboards, with the Association of British Insurers (ABI) warning that a single, Government-run platform will not be enough to meet the public’s expectations or the needs of the modern pensions market.
In a new report: ‘Unlocking Pensions Potential: The Benefits of Private Sector Dashboards’, the ABI argues that relying solely on the MoneyHelper dashboard, a Government-backed initiative, risks limiting engagement. The report warns today’s consumers are used to intuitive, app-based financial tools offering integrated experiences and the ability to act on information in real time.
The ABI’s Policy Adviser, Emily Mae Collins, said,
Private sector dashboards would be perfectly placed to complement the MoneyHelper dashboard. While MoneyHelper’s dashboard will fundamentally change how people view and engage with their pension savings, private dashboards will provide the tools to act.
Making dashboards useful, not just informative
The ABI argues that private dashboards could go far beyond simply showing people where their pensions are. By offering tools that enable users to update personal information, adjust contributions, consolidate pension pots or eventually access financial advice, private dashboards could transform how people manage their retirement planning.
The report also highlights the potential risks of inaction. Without the means to act on the information they find, people may resort to less secure channels or be drawn towards unregulated advice, especially if they find the official dashboard unhelpful or too limited. As Collins explained:
Integrating dashboards into the apps and services consumers already use can dramatically increase reach and support people to understand their pension in the context of their wider finances.”
A call for clarity and commitment
While the ABI supports the launch of the MoneyHelper dashboard, it argues that the Government should make it clear the private sector has a vital role to play too. The report calls on ministers to provide a clear, public commitment to enabling private sector dashboards and to publish an indicative development timeline so that providers can plan ahead.
The absence of a published timeline is creating uncertainty for providers, the ABI says, making it harder to secure funding and build the necessary systems to support dashboards and post-view services. ‘Given that private sector dashboards are projected to take around three years to develop, establishing timelines is crucial,’ the ABI warned. ‘Without this, firms are unlikely to be able to launch their own dashboards within this Parliament.’
Parallel progress
The ABI explained it is not calling for the Government to delay or downplay the MoneyHelper dashboard. Instead, it believes development of private dashboards can and should progress in parallel, particularly as the pensions ecosystem connects to the central digital architecture that underpins all dashboards.
It is also calling for the Government and regulators to work together to ensure private dashboards can eventually become more than just informational tools. With appropriate rules and consumer safeguards, they could offer regulated advice or tailored support, giving savers more control and confidence in their retirement planning.
Realising long-term potential
In the long term, the ABI believes that a thriving market of private dashboards, built into familiar apps and services, will be key to helping people better understand and manage their pension wealth. Collins continued:
“Before long, the rules should also enable people to make changes and do so safely, whether that’s saving more, consolidating pots, or accessing advice and new forms of support. Together, public and private sector dashboards can ensure that everyone, no matter where they are in their pensions journey, has the resources they need to plan for a better retirement.”
Commenting on the ABI’s warning, Jordan Hindley, Head of Life & Pensions Products at Equiniti said:
Whether the Government will provide the clarity and confidence that the ABI is calling for remains to be seen. Without further reassurance and a roadmap for delivery, the risk is that private sector dashboards, along with their promise of convenience, accessibility and action, could be left behind, which would be regrettable, given the industry’s commitment to delivering a better pensions experience.”
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