Zoom In, Zoom Out: It's time to focus on the pensions dashboard landscape

Now that we’ve received DWP’s updated guidance, it feels like dashboards are finally upon us.

As the industry diligently prepares for connection to the dashboard ecosystem, I've been taking a step back to consider not only what trustees and administrators should be thinking about at this stage in their dashboard journey, but also what pensions dashboards more widely could mean for pension savers across the country. It's vital that we don't lose sight of the bigger picture.

Click and connect

The announcement of ‘connect by’ dates in the DWP guidance makes it very real – trustees and administrators should already be thinking about all the nuances of connection to the dashboard ecosystem and considering how it will all work. We all understand the need to develop a solution to connect to the ecosystem and to ensure scheme data is in a suitable state, but there are also many finer quirks to consider. For example, what happens if a member has a Pension Sharing Order? What if they’ve used Scheme Pays? What if they’re in a small category which is disproportionately expensive to programme? What about twins with the same initial and same address? Although it’s important to start thinking about all these quirks, it can start to feel as though we’re getting bogged down in all the details of preparation.

A different perspective

That’s why schemes should also take a step back and look at the wider impact of dashboards before we start zooming in too much.

Since starting my career in pensions a few years ago, I’ve become very aware of the lack of knowledge and often misunderstanding my generation has towards their retirement savings. Whilst auto-enrolment has been a success, there’s still poor engagement with pensions amongst many of Gen-Z. The introduction of pensions dashboards could be a real game changer for several reasons.

• Accessibility: Firstly, dashboards will lead to an increase in accessibility with people’s pensions. Making everything digital and easy-to-access is much more familiar to a younger generation who are accustomed to viewing all their finances on banking apps.
• A holistic view: Dashboards will also provide a consolidated view of all pensions, and with the likelihood of multiple job changes throughout their careers, next-gen savers will be spared the complexity and hassle of identifying their various pension pots
• Increased motivation: I’m also hopeful that by being able to access dashboards at any time, my generation will be able to see their pensions grow and, as a result, will be more motivated to save and contribute more to their pension.

So, despite the long list of quirks and nuances that trustees and administrators should be considering following the updated guidance, it's really important to remember the wider purpose of this project. Ultimately, the launch of pensions dashboards should be part of a wider transformative shift in financial accessibility and understanding for pension savers. What an exciting time to be a part of this industry – let’s get cracking!

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