The Government has promised to introduce a Pension Schemes Bill which would allow people to access their information from most pension schemes in one place online for the first time in the form of a pensions dashboard.
The Department for Work and Pensions (DWP) originally planned to launch the first dashboards during 2019 but the idea was not given the green light until late last year.
Minsters confirmed via the Queen’s Speech that the dashboards will provide “plain information” and that the legislation will include “new powers to compel pension schemes to provide accurate information to consumers”.
Individuals will be able to access all the information about their pension and potential retirement income from any device, whereas currently, they can only look at different pension pots separately.
Given that in the course of a lifetime of work the average person will have around 11 different jobs that is 11different pension pots to investigate, so having just one source of all the information will be welcome, particularly for retirement planning.
It is expected take three to four years for most pension providers to put together the information to launch their versions and there are doubts about how quickly the value of people’s state pension payments will be included in the dashboards.
However, because schemes will not be required by law to provide the necessary information for up to four years, the first versions of the dashboard will not show all of a person’s retirement pots in one place. It is to be hoped that this will not deter users in the longer term.