Marvin OnumonuThe Association of British Insurers (ABI) has called for urgent Government backing for private sector pensions dashboards, saying they are essential for reaching millions of users and helping recover lost pension pots.
The ABI’s latest report, “Unlocking Pensions Potential: The Benefits of Private Sector Dashboards”, found that relying on a single, Government-backed dashboard will not deliver the expected benefits, as it will only be available through one website.
The ABI said users want app-based services that fit into their everyday lives.
Without private dashboards the reach and impact of the system will be limited, according to the report.
Additionally, ABI said private sector dashboards are needed to hit an estimated 16.3 million users per year and to help recover around £540m in lost pension pots.
The report added that private dashboards would let users take action on their pensions in a regulated environment.
People could update details, change contributions, access pensions, or consolidate pots through these platforms.
Rule changes could allow firms to offer regulated financial advice and targeted support in future.
The ABI said that delivering actions through regulated firms would reduce the risk of people turning to unregulated sources.
The ABI called on the Government to confirm its commitment to private dashboards, set out a timeline for key milestones, and work with regulators so people can take action on their pensions safely after using a private dashboard.
Emily Mae Collins, policy adviser at the ABI, 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 pensions savings, private dashboards will provide the tools to act.
“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.”
Mae Collins added: “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.”
