Former pensions minister Steve Webb slams government for pensions dashboard failure
British savers risk being left behind by the government's failure to engage with a new drive for a pensions dashboard, according to a former minister.
As part of this year's Budget, the Treasury promised to ensure that the pensions industry designs, funds and launches a dashboard by 2019.
However, former Liberal Democrat pensions minister Steve Webb, now director of policy at Royal London, has accused the Government of being too “hands-off” with the project, designed to help savers view a range of pensions pots they may have accumulated through their working life.
Webb said: “Getting the many different parties involved to work together in the interests of the consumer is a big job and may even require legislation. Government has been too hands-off to date and needs to drive this project forward, otherwise savers will continue to have far too little information about their overall pension position.”
A dashboard was proposed by the Financial Conduct Authority in December 2014, following a thematic review into the workings on the annuity market.
A report from Royal London this week noted that in Australia, the Netherlands and Sweden there are already systems to view pensions savings in a single place.
Both Australia and the Netherlands allow savers to log in through online systems, while the Swedish Pensions Agency mails out annual pensions records in a distinctive orange envelope.
However, many questions remain as to how the UK's offering will operate, including how a dashboard would also include state pensions.
The provider said: “In a world where pension savers often have limited information and understanding, a pensions dashboard could be a valuable tool to enhance engagement with pension saving and to contribute to tackling the chronic level of undersaving. Now is the time for government and regulators to 'step up to the plate' and make this a reality.”