Pension changes due to start by April 30 2025 could make managing accounts easier for millions of workers planning their retirement across the UK.
The long-anticipated pensions dashboard is designed to consolidate all retirement savings into a single, secure online hub.
The DWP guidance says: "Pensions dashboards will allow individuals to see their pensions information, including their State Pension, for free in one place online at a time of their choosing.
"Pensions dashboards will also reunite savers with lost or forgotten pensions. The ability to access information easily alongside an increase in individuals’ awareness and understanding of their pension information could also support people with better planning for their retirement."
There's more details in the full report.
Keeping track of pensions is notoriously challenging, with the average worker accumulating 11 different pension pots over their lifetime. This has resulted in £26.6 billion in lost pensions across the UK, according to the Pensions Policy Institute and the Association of British Insurers.
Experts hope that this new dashboard could be a significant step forward for retirement planning.
Adam Pope, CEO from pension experts Spencer Churchill Claims Advice explains: "The pensions dashboard is a much-needed tool that will give savers a clearer picture of their retirement finances. By offering a single platform to view all your pensions, including the state pension, it will make managing long-term savings easier and help prevent pots from being forgotten or lost."
How will the new pensions dashboard work?
The dashboard, developed by the Money and Pensions Service, aims to connect pension schemes of all sizes to a central ecosystem. Larger schemes must connect by the end of April 2025, with smaller ones following by September 2026.
"Once fully implemented, the dashboard will allow individuals to securely access all their pension information in one place," says Adam. "This is not only convenient but will also empower savers to make informed decisions about their retirement planning."
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When can you use the dashboard?
Although the bigger schemes will connect by April 30 2025, it may take until 2027 for consumers to interact with the fully operational system. The dashboard will also be regulated by the Financial Conduct Authority to ensure security and transparency.
"While delays have been frustrating, the staggered rollout ensures that all schemes, large and small, are brought into the system properly. This approach reduces the risk of errors and ensures accuracy for consumers when the dashboard is live," says Adam.
Announcing consultation to give "Savers a legal right to require a new employer to pay pension contributions into their existing pension so they have just one pension pot" - good but admin will be tough.
— Martin Lewis (@MartinSLewis) November 22, 2023
Really need them to speed up the pensions dashboard so if people have…
From day one of the rollout, savers will be able to view their state pension through the platform, with the potential for additional dashboards hosted by private organisations over time.
"The pensions dashboard is a fantastic tool, but its success depends on savers actively using it," explains Adam. By engaging with the platform, you can identify any gaps in your savings, track down lost pots, and ensure your retirement plans are on track.
"This initiative isn’t a silver bullet to solve every pension issue, but it will undoubtedly make managing pensions more accessible and transparent for millions of workers."
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