A tool to help you see all your pension savings in one place – dubbed the ‘pensions dashboard’ – was unveiled to the public today for the first time, and Which? can reveal what it could look like when it goes live in two years’ time.
The ‘pensions dashboard’ is due to launch in 2019 and will include how much you have saved in private and workplace pensions, as well as your state pension, making it easier to track your retirement savings.
Which? lobbied for the government to introduce a pensions dashboard system to help savers make informed decisions about their retirement choices.
Find out more: pensions and retirement – weigh up your retirement options with our step-by-step guide
How will the pensions dashboard work?
Simon Kirby, economic secretary to the Treasury, unveiled a prototype of the dashboard at an event to promote technology in finance.
It will connect up data provided companies, such as employers and insurance companies, that run pension schemes, as well as the Department for Work and Pensions, to look for pension pots which match your details.
The dashboard will then highlight all of the pensions it can find on a single page, showing the names of the schemes and their estimated value at a particular retirement age.
An estimated value for your combined monthly or annual income in retirement is also included.
While unveiling the dashboard, Kirby hinted that could additional features could still be introduced.
He said: ‘To realise the huge benefits of this technology, we cannot prescribe a single way for people to access their own data. Firms need to be able to innovate to answer a whole range of users’ needs. There is no monopoly of wisdom.’
Pensions dashboard FAQs
Why is a pensions dashboard needed?
With the introduction of auto-enrolment for workplace pensions, more of us are likely to be juggling multiple pensions throughout our careers.
Previous Which? research suggests that over a third of people approaching retirement age find it difficult to keep track of their pension pots.
A pensions dashboard can help savers make informed decisions about their retirement choices by presenting details of all their pensions in one place.
Who decides how the final service will operate?
The prototype stage of the pensions dashboard has been managed by the Association of British Insurers, on behalf of HM Treasury and the wider industry.
However, the final decisions about how the pensions dashboard will work will be made by the government.
Where will I be able to use the pensions dashboard?
The dashboard is being built in such a way that it could be offered by a variety of websites – from the companies with which you save into a pension, free information websites to potentially third-party applications you download on your phone.
That means the data in the prototype revealed today could be presented differently and a range of functionalities could be added to the tool to help you stay on top of your pensions.
What is being done to ensure my data will be safe?
The process to confirm the identity of users is based on the gov.uk/verify system, which has already proved to be a secure portal for people accessing personal information.
What can I do to track my pensions in the meantime?
Your annual pension statements tell you how much you have saved and what you’re likely to receive when you retire. If you can’t find your statements, your employer’s pension department should be able to help. Our pension calculator also makes it simple to find out how much you’re on course to receive based on the current size of your retirement nest-egg.
The Pensions Advisory Service recently launched a new online tool to help people track down lost pensions. The Department of Work and Pensions (DWP) also has a free Pension Tracing Service, which helps you contact your old workplace pension providers.
You can find out how much state pension you’re likely to get using the DWP online calculator. You can also request one a state pension forecast from the government by calling 0345 3000 168.
Our video guide explains how the recent changes to the state pension may affect you, how much you’re likely to get and when you qualify to receive it.