Pension Minister Laura Trott has announced that the timeline for the pension dashboard is being ‘reset’.
The first connection deadline was due to take place on 31 August 2023. However, in a statement, Trott said “additional time is required to deliver the complex technical solution to enable the connection of pension providers and schemes, in accordance with the connection deadlines set out in the Pensions Dashboards Regulations 2022 and the Financial Conduct Authority’s corresponding pensions dashboard rules for pension providers.
“More time is needed to deliver this complex build, and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture.
“Given these delays, I have initiated a reset of the Pensions Dashboards Programme in which DWP will play a full role.
The delay was met by disbelief and disappointment from commentators.
Rachel Vahey, AJ Bell head of policy development, said the move was ‘a staggering development” which meant that dashboards were “at risk of being mothballed until the next Parliament, and may never become a reality at all”.
She added: “For the industry this is frustrating, with countless hours of careful work put into developing dashboards. More importantly, this a huge let down for consumers. Dashboards had the potential to empower pension savers but they’ve been badly let down by a project that has over-promised and under-delivered.
“There is no date for dashboards launch, and there are now major doubts about whether the project can be delivered before the next election.
Kate Smith, head of pensions at Aegon, said the assurer had “ been aware since the beginning of the year that there was ‘trouble at the mill’ but are surprised that the DWP is taking such a radical step by announcing a reset.
“We are disappointed about the reset which in reality likely means an implementation delay, but we recognise that it’s really important that everything is in place before schemes connect to the dashboard ecosystem and definitely before the public accesses dashboards.
“There’s a strong possibility that the dashboard scheme onboarding phased timeline could be moved back into next year, giving the pension dashboard programme more time to prepare for this incredibly complex programme. This will also give schemes more time to prepare, but it’s important that they carry on with their plans in the meantime rather than throwing them up in the air.”
The government needs to urgently confirm what the move means for schemes and pension providers in practice, she said, “as there are many other changes happening concurrently”.
“Ultimately, we believe that pension dashboards have the potential to be a gamechanger, not only connecting people with their pensions but also increasing engagement and improved financial wellbeing. However, this reset means that the public may have to wait until 2025 or beyond to access dashboards to see all their pension online and in one place.”
Lily Megson, policy director at My Pension Expert, applauded the government “for not rushing to push out an inadequate project; it must be done right. That said, this delay is a disappointing turn of events.
“Now, the government must ensure that consumers have the right financial support to help them achieve the financially secure retirement they deserve,” she said.
My Pension Expert’s own research had found that only 35% of UK adults believe they will be able to retire when they want to, Megson pointed out. “If the Pension Dashboard is facing indefinite delays, the government must ask itself what further support can be provided in the interim.
“The Pension Dashboard Programme has the potential to transform pension engagement – and I hope the government soon outlines when we can expect the new launch date. Until then, I implore ministers to ensure support for savers remains a top priority. Otherwise, we risk seeing the UK’s confidence in its financial future continuing to slip.”
