Getting Pension Dashboards Done
Anthony Rafferty, Managing Director, Origo writes on the two recent events 'Pension Dashboards and the Road to Open Finance' co-hosted by Origo and ForgeRock.
Origo and identity platform specialist ForgeRock recently co-hosted two events on Pension Dashboards and Open Finance, bringing together a number of expert speakers in Edinburgh and London to talk around the issues needed to be tackled to make Pension Dashboards a reality, sooner rather than later.
The speakers brought knowledge and experience in policy, strategy and technology to present a realistic overview of what lies ahead and what needs to be done to ensure dashboards are introduced and start helping individuals to better plan for their financial futures.
The importance, after five years of ongoing work, of making Pension Dashboards a reality as quickly as possible cannot be understated. In our view, Pensions Dashboards and Open Finance, which go hand-in-hand, are the best catalyst we have to stop people sleep walking into an under-funded retirement. In fact, the consequence of not having the Dashboards, as has been highlighted by the ABI, is that by 2050 we could see an estimated £20 billion in orphaned pension pots in the UK.
Collaboration is going to be paramount in achieving this project and the incredible support and collective energy of the industry behind Pension Dashboards I believe is nowhere more manifest than in the coming together of this group of experts to talk through the issues still facing dashboards and the solutions available.
What came out of these two days for us is that there are plenty of positives. The fact that there is cross-party support for Pensions Dashboards and its specific inclusion in the Pension Schemes Bill, which is benefitting from a Government majority in Parliament, speak volumes.
Also, large and important parts of the project are ‘ready to go’ and could be quickly brought into action, which means focus should be on the outstanding elements and bringing Dashboards to fruition as quickly as possible. As one speaker put it, “let’s not re-invent the wheel.”
Industry sees the benefits of Dashboards both for individuals and for businesses and there is the drive to help resolve and deliver on the outstanding elements of the project.
Issues still to tackle, include provider readiness and data accuracy, identity, security and trust in the system, and what exactly can be delivered to dashboards from day one. Over the two events we heard from experts on the scope and depth of those issues.
Focussing on the readiness of providers and their technical capability to deliver it to a dashboard – currently, a phased approach is planned, whereby the more technically proficient providers are brought on to the Dashboards first and the rest of the industry comes onboard in phases over a four-year period.
Commentators have pointed out that this does not fulfil the basic aim of Dashboards, which is to give individuals detailed information about what pension they hold and where.
One way suggested at the events to quickly enable Dashboards, would be to start by making it mandatory for all providers to provide a certain level of data; this could be the simple notification that a pension is held and where. However, given that many providers are far more technically capable, they could then be allowed to deliver more data on an optional basis. Phasing would then apply to the data rather than providers and Dashboards could be immediately available to the estimated 15 million people to whom it will be relevant.
This was one of many topics discussed and I will pick up on others in my subsequent blogs on the two events.
However, for me the day was summarised in a sentence from Yvonne Braun, Director of Policy, Long Term savings and Protection, ABI, and member of the MAPs Pension Dashboards Industry Delivery Group, who pinpointed the reason we need to get Pension Dashboards done, when she said: “The prize in terms of the financial wellbeing of people in this country is huge.”
Full list of speakers at the Origo and ForgeRock co-hosted events:
Anthony Rafferty, Origo
- Yvonne Braun, ABI
- Gavin Littlejohn, FDATA
- Chris Connolly, Equiniti
- Alan Clay, Experian
- Paul O’Carroll, ForgeRock
- David Rennie, Idemia
- Kenneth may, Origo
- Philip Cottis, Hargreaves Lansdown