Pensions dashboards

What is a pensions dashboard?

Pensions dashboards enable people to access information about their pensions online. Pensions dashboards are being developed in the UK, which will allow people to access information about pensions held in different schemes, with different providers and the state pension in a single place.

Why are pensions dashboards being developed?

Changes to the labour market and pension reforms are expected to increase the complexity of some decisions people need to make about their pensions. In 2012, the Department for Work and Pensions estimated that people would work for eleven different employers during their working life. In April 2019 the Government said pensions dashboards would increase people’s awareness and understanding of their pensions, help them find lost pension pots, and enable them to make more informed decisions about how they choose to access their pensions.

Who will provide pensions dashboards?

In the UK, private sector organisations with suitable permission will be able to provide their own pensions dashboard service by connecting to a single digital architecture. The digital architecture is being developed by a Pensions Dashboards Programme. The Money and Pensions Service, which is a public body supported by the Department for Work and Pensions, will also develop its own non-commercial dashboard.

Delivering pensions dashboards

The Pension Schemes Act 2021 provided the legislative framework for pensions dashboards. The Pensions Dashboards Regulations 2022 set out the detailed framework for pensions dashboards in England, Wales and Scotland.  Corresponding regulations are set out in The Pensions Dashboards Regulations (Northern Ireland) 2023.

The Pensions Minister announced in June 2023 that pension schemes will need to be connected to the pensions dashboards digital architecture by 31 October 2026. This is a year later than the initial last date for connection.

Responsibility for delivering pensions dashboards is spread across several organisations:

• The Pensions Dashboards Programme is responsible for designing and implementing the infrastructure for pensions dashboards.
• The Money and Pensions Service has responsibility for creating a non-commercial pensions dashboard. It was also given responsibility for bringing together the Pensions Dashboards Programme team.
• The Pensions Regulator regulates trust-based occupational pension schemes. It is required to monitor and enforce the legislative requirements relating to pensions dashboards placed on the trustees of these schemes.
• The Financial Conduct Authority regulates providers of contract-based pension schemes. It will also have a role in authorising and regulating the operators of pensions dashboard services and their conduct.

Issues and debate

Some of the key issues which have been debated include:

• One or multiple dashboards: there was significant debate about whether there should be multiple dashboards, or a single one, hosted by a public body. The Government is supporting an industry-led, government facilitated approach with multiple dashboards, including one non-commercial dashboard, hosted by the Money and Pensions Service.
• Protecting consumers: data breaches, scams and fraud are potential risks of pensions dashboards. The Government has said “safeguarding the data and protecting consumers will be paramount”. In February 2020, the Government committed to make the provision of pensions dashboards a Financial Conduct Authority regulated activity.
• Making transactions within pensions dashboards: when the Pension Schemes Act 2021 was before Parliament, there was debate about whether they should facilitate transactions. A Lords Opposition amendment which would have prevented this was overturned in the House of Commons. The government said that future enhancements, including transactions, should not be decided until the “initial offer has been tested with users and any behavioural effects are understood.”