As we start to look ahead to key market development items for 2017 there has been an interesting step forward in relation to the proposed Pensions Dashboard initiative.
What has happened?
On 12 September 2016 the Economic Secretary to the Treasury, Simon Kirby, announced that a prototype of the Pensions Dashboard will be ready by March 2017.
What is the Pensions Dashboard?
The Pensions Dashboard is a platform that will enable customers to see all of their pension pots in one place and thus will help customers to plan for their retirement more effectively. Click here to see the full story.
Who is involved in the prototype development?
At the date of the initial announcement by Simon Kirby, 11 leading pension providers - Aviva, Aon, HSBC, LV=, NEST, Now:Pensions, The People’s Pension, Royal London, Standard Life, Zurich and Willis Towers Watson - were said to be committed to building the Pensions Dashboard. On 5 November the ABI announced that six more companies – Abbey Life, Fidelity International, Legal & General, Lloyds Banking Group (Scottish Widows), Phoenix and Prudential - were signed up in support of the project.
Who is managing the project?
The Association of British Insurers (ABI) has agreed to manage the day-to-day running of the pilot project.
When will the Pensions Dashboard be formally launched?
The intention is for the Pensions Dashboard to be launched in 2019.
Who will be impacted?
Customers – The aspiration here is that customers will be better informed on their pension holdings and have a greater understanding of their total ‘pension wealth’, including state pension details. This will be a positive step forward and when combined with other initiatives will support awareness of and engagement with pensions.
Financial advisers – Better informed customers and better access to a wider range of online pension details and valuations can surely only be a positive for financial advisers.
Product providers - The full list of 17 companies includes new companies set up in response to auto-enrolment, existing pension providers, large Master Trusts, pension administrators managing DB and DC pension schemes and providers closed to new business. Many of these companies are assessed and rated by AKG within our sector for Life Companies, Friendly Societies & Similar Providers. We will monitor the prototype development, and the role played by these supporters, closely and we will be interested to see how other pension provider respond moving forward. Companies across the sector need to continue to create cost efficiencies and better employ digital solutions. It is quite possible that the introduction of the Pensions Dashboard will be a form of catalyst for pension consolidation and so companies will also be considering associated business retention strategies.