11 December 2014 – FCA interim report
The Financial Conduct Authority (FCA) recommends the development of a Pensions Dashboard which would enable consumers to view all their lifetime pension savings (including state pension) in one place. The recommendation was one of several made in the FCA’s Retirement Income Market Study Interim Report exactly 12 years since Andrew Smith made the same proposal (see Pre-2014).
The FCA said they are aware this idea has been raised in the past [i.e. the Online Retirement Planner] and they recognise the challenges in implementation and cost for such a project. However, the FCA said there is qualitative evidence that pensions dashboards have been successful in other countries (in particular, the Dutch dashboard which has encouraged consumer engagement with pensions).
The FCA believes the case for introducing it in the UK is getting stronger. As people increasingly have multiple pension pots and other sources of retirement income, there is a greater need for this tool. The FCA report consulted on the idea, asking questions about the effectiveness of the proposal, any foreseen implementation difficulties, and how and by whom the dashboard should be implemented.
18 July 2014 – Mark Hoban speech
Following the announcement of the pensions freedoms in the Chancellor’s Budget in March 2014, a speech by Mark Hoban MP (former Financial Secretary to the Treasury and former Minister at the Department for Work and Pensions) is reported in the Financial Times (FT) in which he called for the Government to establish a central database to hold information on consumers’ finances such as their pensions, savings and other assets. The “Retirement Saver Service” would give consumers “extra confidence” to handle their expanded choices at retirement.