It's settled, UK's pension dashboards have been given the green light
Ready or not, here it comes. The pension dashboards are a go, and they are aimed at revolutionising retirement planning for good. Whether or not that statement will retain its power is yet to be seen but so far, it's looking like this may be a great new restructuring initiative that puts pension savers back in the driving seat with regards to their financial futures.
The Work and Pensions Secretary has finally given the green light for application of the dashboards, with initial industry models expected sometime this year. Work and Pensions Secretary Amber Rudd unveiled the proposals on 4th April, in hopes that the dashboard innovation will instigate the delivery of free, user-friendly services that let people manage their pensions information online.
Pension holders are now privy to all the facts, figures and details regarding their pots, with potential retirement income accessibility at their fingertips. People can expect seamless, centralised transparency with access through smartphones, tablets, computers and other devices.
How does it work?
Pension dashboards enable all of your pension savings to be visible at the same time. You can choose which dashboard to use and will be granted features that show how much you've already saved for your retirement.
These features comprise most final salary schemes (known as Defined Benefit), most investment-based schemes (known as Defined Contribution) and any State Pension you can claim.
Whichever pension dashboard you choose, they all typically will work the same way. All of them are designed to efficiently find your pensions and secure them reliably. Initially, the system will need to collect your details and check your identity before proceeding with the transferring of information.
Once that's done, you'll need to give approval in order for the system to securely share that information on the dashboards. When it comes to quickly looking through millions of pension plans to find all of yours, the system itself is pretty advanced. After that, the dashboard will proceed to show you all of the details in an orderly fashion, all in the same place for convenience.
Details of each pension pot include the most recent valuation and when that valuation was made as well as each pension provider's contact details. You may have to directly ask the company for a more recent valuation if there isn't one being displayed yet. A financial adviser can also do this for you.
There will be more than one pensions dashboard so you may have to do a bit of choosing by the time the whole initiative is rolled out. Your employer may have one dashboard, your bank may have one and your advice service may also be equipped with one.
It’s ok to feel slightly insecure about the display of your pension pots online but this could ultimately increase transparency and convenience when it comes to dealing with your retirement income. If you’re ever feeling a little overwhelmed over the whole thing, just drop us a line to make an appointment with me for a non obligatory chat.