The FCA wants a Dutch-style ‘Pensions Dashboard’ to be created for the UK market to enable consumers to view all their defined contribution savings in one place.
The idea forms part of the regulator’s recommendations to improve the way the annuity market operates after a thematic review found competition “is not working as well as it could” for savers.
The report, published this morning, cites the development of a Pensions Dashboard as a “longer term” recommendation. Campaigners have long called for the introduction of a ‘Pensions Passport’ in the UK to help savers shop around the retirement income market.
The FCA describes the dashboard as an “interactive digital tool”, although it remains unclear who would be responsible for its development and administration. The regulator also acknowledges that cost could be a barrier to the initiative.
The FCA says: “We are aware that the idea of a Pensions Dashboard has been raised in the past and we recognise the challenge in implementation and cost for such a project.
“However, it has been successful in other countries, and we believe that the case for introducing it in the UK is getting stronger.
“Our provisional findings indicate that the quality of information provided to consumers could significantly improve their engagement with the market and subsequent outcomes. We consider that this initiative can make an important contribution in that respect.”