What is the dashboard for pensions?

Delays have plagued the pensions dashboard initiative, which was hailed as a game-changer for how we manage our savings

What is it, and when is it going to launch?

The pensions dashboard, a long-delayed government initiative designed to assist you in monitoring your retirement funds, may be familiar to you.

Developed since 2016, the program is expected to assist savers in navigating the complicated pension landscape.

The dashboard promises to consolidate all of your pension funds, including the state pension, in one location so you can see how much you have in each. This will make retirement planning simpler.

Yesterday, April 30, marked a significant milestone. By this date, workplace plans and some self-invested personal pensions (Sipps), which are among the largest pension schemes, must "connect" to the dashboard.

If pension firms meet the deadline, "this starts the process of making sure most people will be able to see all their pensions," said Rachel Vahey, head of public policy at AJ Bell. Depending on their size, FCA firms and other smaller pension plans may be asked to connect in the future.

"It's not an easy task to implement the dashboard, as the project has been plagued by delays and restarts thus far," she continues. Nonetheless, it is hoped that we are now approaching a launch date, albeit slowly.

It is still unclear when the public will be able to use the pensions dashboard, though, and it will launch later than anticipated. A previous damning report from the National Audit Office (NAO) criticized the project's skyrocketing cost and claimed there was "a lack of skilled resources and ineffective program governance."

Emma Reynolds, the former minister of pensions, declared last year that the government would prioritize the MoneyHelper dashboard service's launch, delaying the introduction of commercial dashboards from pension providers.

At the time, Vahey stated: "To limit the dashboards to just one versionthe government's ownmeans fewer people will know about or utilize the dashboard, possibly losing out on the chance to locate lost pension plans and restart their pension savings.

An astounding 289 million is the estimated final cost of the project.

The problem of small pension pots was addressed by the dashboard program. How many defined contribution pension plans are you aware of, and do you have all the documentation required to access them? You may have accrued a number of defined contribution pension plans during your working life.

According to data, the program is much needed, and as we move toward a future where the average person switches companies several times during their career, misplaced pension pots are becoming a greater issue.

Over one in five employees think they have lost their pension fund, which could amount to lost pension savings of roughly £50 billion. That is the conclusion of an analysis conducted on behalf of PensionBee by the Centre for Economics and Business Research.

The pensions dashboard: everything you need to know, including when it might launch.

What does the pensions dashboard include?

When operational, the digital service known as the pensions dashboard will enable savers to view all of their pension data, including state pension data, in one location.

The pension's current value and potential income at retirement age will be displayed, along with the scheme or provider the pension is with and contact information.

Users will need to input their name, address, and birthdate, among other personal details. The dashboard ecosystem will display the information it has collected to the individual after confirming with the majority of UK pension plans to see if they have any information for them.

This will not only assist you in finding any pension funds you might have overlooked, but it will also help you determine the value of your pension. In the future, you will be in a better position to manage your finances wisely because of this.

The Money and Pensions Service (MaPS) is working on the pensions dashboard program, which will be housed on the MoneyHelper website.

Later on, private companies like banks, employers, and pension providers will be able to create their own commercial dashboards.

What is the launch date for the pensions dashboard?

The program has experienced multiple delays due to technical issues and disagreements about its proper operation.

Ex-Minister of Pensions Laura Trott announced in 2023 that the deadline for pension plans to link to the dashboard would be rescheduled for October 31, 2026. The dashboard would be made publicly available in 2024, with schemes beginning to connect to it in August 2023.

"It is wise to give a period while only the MoneyHelper dashboard is operational . in order to ensure consumers have the best experience on dashboards," Reynolds said in an update last October after being appointed pensions minister. We are dedicated to meeting the deadline of October 31, 2026, for the overall connection as well as the currently published timeline for the connection of pension schemes and providers to the pension dashboards ecosystem, which is anticipated to start in April 2025.

In March of last year, the Department for Work and Pensions (DWP) released a timeline. In order to do this, the majority of schemes must connect to the dashboard before the deadline of October 31, 2026. These are the important dates (keep in mind that various pension plans have deadlines within them; for example, parliamentary pension plans need to connect by October 31, 2025, while personal pension providers with 5,000 or more clients need to connect by April 30, 2025).

Between April 30 and November 30, 2025, the majority of major pension plans and providers will link. From January 31 to September 30, 2026, the majority of medium-sized pension plans and providers will cooperate. Although following the schedule is not required, pension trustees, managers, and providers are legally required to do so, according to the DWP.

No specific date has been set for the dashboards' public launch, aside from the dates on which pension providers must "connect" to the dashboard.

According to Vahey, "The DWP can set a launch date for the public once all pension schemes have connected and the pensions dashboard has been extensively tested to ensure it is providing people with the right information in the right way." However, this isn't anticipated to happen until at least late 2026 or early 2027.

What is the purpose of a pension dashboard?

Approximately 50 billion pots are missing, according to the Center for Economics and Business Research. For savers, streamlining the procedure for obtaining their pots could be revolutionary.

The program is intended to increase pension engagement in addition to improving your access to your nest eggs.

Lily Megson, policy director at My Pension Expert, states that "ensuring its timely and effective implementation is essential in helping people understand their retirement finances more comprehensively, given the historically low levels of pension engagement in the UK."

75 percent of adults are unaware of the amount in their pension fund, according to Standard Life's research. This number increases to 81 percent for women and 79 percent for those aged 55 to 64, which further widens the gender pension gap.

Unfortunately, complexity is a big obstacle, and many people wait until it's too late to start creating a retirement financial plan. This issue should be partially addressed by the pensions dashboard.

Will regulations apply to the pensions dashboard?

Current plans call for the pensions dashboard ecosystem to eventually consist of several dashboards created by various organizations. These companies must demonstrate their technical know-how and experience in order to be eligible to use the Qualifying Pensions Dashboard Service (QPDS).

All other dashboards must be able to function through the digital architecture developed by the Pensions Dashboards Programme, and QPDSs must be subject to Financial Conduct Authority (FCA) regulation.

MaPS and the FCA will work together to establish and implement the guidelines for dashboard operation. MaPS will establish the standards that operators must adhere to and will alert the FCA if any are found to be lacking. The FCA may then de-authorize the provider by using its authority.

What is causing the delay in the pensions dashboard?

Developing the pensions dashboard is a massive operational undertaking that requires a lot of data and a variety of IT systems. Because of this, it is complicated, and this complexity has been primarily held responsible for the delays thus far.

The NAO report did, however, also highlight "capacity and capability issues, including a lack of digital skills and ineffective governance" as contributing factors to the delays.

The program's estimated cost has increased by 23% due to a "range of factors, including a rise in supplier costs and the delivery timetable being extended by two years," the statement continued.

Despite previous setbacks, the Labour government's apparent commitment to the project has impressed pension experts.

The government's continued commitment to such a significant project is comforting, Vahey remarks, particularly given how tight the public finances are. We must maintain our momentum in order to create dashboards and see this project through to completion.

PensionBee's director of public affairs, Becky OConnor, continues: "The government's ongoing dedication to the pension dashboards project is heartening, but it has been plagued by challenges and setbacks from the beginning.

"The implementation of this service is essential for the millions of pension savers in the UK as it will facilitate retirement planning.