I was impressed by the Pensions Dashboard
22 May 2017
Graham Miller of O&M Systems attended the recent ABI Challenge Session in London where he saw the first prototype in action. Here he gives his view of the dashboard.
The proposed Pensions Dashboard is something that has the potential to change UK pensions planning for ever.
At the tail end of 2014, the FCA raised the idea of Dutch-style Pension Dashboard, to enable consumers to see all of their savings in one place. All was relatively quiet for the next couple of years, but in the 2016 budget the chancellor set a deadline date for 2019 for its launch. Since then, some important work to prove the concept has been undertaken in a project being managed by the ABI on behalf of HM Treasury.
Why Create a Pension Dashboard?
Officially: “The purpose of the Pension Dashboard is to enable consumers to gain a holistic view of all their pension pots. This will help ensure that consumers don’t lose touch with their pensions, can get a sense of their overall preparations for retirement, and empower them to make decisions.”
The Dashboard Prototype
Once you’ve created a digital ID, using your passport and driving licence, your entire pension history will be delivered to your phone, tablet or PC in minutes.
This sounds fanciful, but at an ABI Challenge Session in London recently, I saw the first prototype in action and it worked. In fact I saw demonstrations of two prototypes, which showed significant progress in addressing the technological challenges. In each case, the Dashboard showed results from the state pension scheme and workplace/private (DC and DB) schemes.
There is a way to go and many challenges, before either prototype becomes a live system, but it’s fair to say that everyone was suitably impressed with what they saw.
How will the Dashboard Integrate with O&M Profiler ESP?
One way of visualising the Pension Dashboard is to think of it as the national mains water supply. You can connect to it, but when you consume the water, you do so using whichever taps you like. This is where fintech firms like O&M, hope to be offering dashboard solutions, to add value to the raw data. Imagine how quick retirement modelling would be, if the dashboard found all the pension holdings a client has and pre-populated O&M Profiler ESP? Alternatively, imagine clients showing their dashboard results to you and asking for advice on how to make good their income shortfall?
To list the unanswered Pension Dashboard questions here, would be unfair and unproductive, as the target launch date is still two years away. However, if the progress so far is anything to go by, the Pension Dashboard will be a success and O&M will engage with it to deliver enhanced solutions through O&M Profiler ESP at the earliest opportunity.
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