Guy Opperman, Minister for Pensions and Financial Inclusion, talks about how the Call for Input marks an important step towards helping savers take greater control of their financial futures.
Robust data standards are key to realising the potential of pensions dashboards
I truly believe that pensions dashboards have the potential to utterly transform the way we all think about and plan for retirement. They will reconnect savers with lost pension pots, engage those who may be under-saving, and help savers take greater control of their financial futures.
To fully realise the potential of dashboards, few things will be as important as getting the data standards right. The data standards will set out the information that pension providers and schemes will be required to show their customers and members via dashboards, and the format in which data will have to be supplied.
As the recent debate on the Pensions Schemes Bill has shown, there is a cross-party focus on the quality of scheme’s data. The legislative framework that will underpin delivery of dashboards has rightly attracted Parliamentary scrutiny during the passage of the Pensions Schemes Bill. I want to ensure that we get this right. I want to engage with industry to understand how the legal requirements will operate in practice.
A Call for Input
Today’s Call for Input (running from 6 July to 31 August 2020) by the Pensions Dashboards Programme and the creation of their Data Working Group recognise the key role of industry and other stakeholders in getting the data standards right.
Studying international examples and engaging counterparts in other countries has reinforced the necessity and benefits of gaining industry input in defining data standards at this stage of the project. I would urge every scheme to take part.
It is essential for schemes to be on the front foot and to get data ready as soon as possible. To help me understand the position I wrote to a number of large schemes on 17 June to get their assessment of their readiness and look forward to their responses.
It is in everyone’s interest that all relevant pension organisations are preparing their systems and data now, to help ensure dashboards launch successfully.
Pensions providers have excelled at supporting savers with appropriate information and guidance during the Covid-19 pandemic. We can build on this success, working together to provide all savers with transparent and understandable information via dashboards. This will not happen without a set of consistent data standards.
With record numbers saving for retirement, the need for pensions dashboards is stronger than ever and there remains plenty of work to be done.
This Call for Input is another important step in bringing pensions into the digital age and ensuring that the record numbers of people saving for retirement are provided with the necessary information to make informed choices as they prepare for financial security in later life.