Whether you’ve heard of the Pension Schemes Act or not, the newly passed law will undoubtedly change the way you look at your pensions. Here’s how.
A major win for consumers across the UK was the passage of the Pension Schemes Bill, now officially the Pension Schemes Act. The Act covers a variety of issues, but chief among them is the creation of a Dashboard that will give you crucial digital information on your pensions in one place.
These Dashboards have the potential to significantly improve how you engage with your pension, by providing information about how much you’ve saved, what you might need to save for a comfortable retirement, and to help you make informed decisions about your retirement choices.
Campaigning for change
Which? has led the way in calling for the introduction of Pensions Dashboards since our Better Pensions campaign launched in 2015.
Fast-forward to February 2018, and our Dashboards Report proved instrumental in initially shaping the Government’s thinking, and the original government consultation on the Dashboard relied extensively on the research contained in our report.
Both before and during the Bill’s passage through Parliament, our pensions team worked tirelessly to ensure it contained the best possible outcomes for UK consumers.
Listening to our concerns
However, despite this, there were still genuine concerns that: the commercial dashboard would be subject to further delay; financial transactions would be prohibited; and there were even questions about whether the dashboard would be a regulated activity or even display basic information about costs and charges incurred.
What is clear though, is the government and opposition listened to our concerns, and because of this, Pension Dashboards will now:
📄 Be a regulated activity, protecting consumers from the risks of bad outcomes, whilst giving them the freedom to use the full range of tools available to them through the Dashboard
📄 Display key information, including costs and charges, projected state pension at retirement, and projected retirement income
📄 Be available to consumers without added delay, with the commercial and MaPs Dashboards both being made available to consumers as soon as they are developed, rather than delaying the commercial dashboard for an extra year
We’d like to say thank you to everyone who campaigned with us to make these changes happen and achieve a positive outcome.
How do you feel about the changes? Do you agree that the improvements will change the way we look at our pensions?