Advisers have welcomed progress on the pensions dashboard and expect the technology will improve the service they give to clients.
The Treasury announced this week that a model pensions dashboard would be released by March 2017. The dashboard was recommended as part of the Financial Advice Market Review.
The idea behind the pensions dashboard is to pull in data on a savers’ different pension schemes which the individual can access in one place.
Eleven providers have so far signed up to the pilot: Aviva, Aon, HSBC, LV=, Nest, Now: Pensions, People’s Pension, Royal London, Standard Life, Zurich and Willis Towers Watson.
Informed Choice managing director Martin Bamford says the dashboard will allow advisers to concentrate on the most important parts of the advice process.
He says: “A big complexity we face when engaging with clients is understanding what they have got and what they are likely to have in retirement. If it can be presented to us in one place then the client will have a better understanding of what retirement looks like and we can focus on the more valuable bits, rather than data gathering.”
Facts & Figures Chartered Financial Planners managing director Simon Webster says: “Anything that gives the public more information on their likely retirement income and their likely retirement position and offers a degree of engagement has got to be a move in the right direction.”
But he adds: “The danger with these things is if they are overcomplicated, and you end up with 10 pages of information when all you want is one number. A dashboard that gives you a simple clear cut picture is going to be very welcome.”
Commenting on the Money Marketing website, Finance & Technology Research Centre director Ian McKenna calls the dashboard “hugely relevant” for advisers.
He says: “The good news is the Government has committed to an open infrastructure, no monopoly, not just pension providers to supply dashboards but all types of companies who can meet the security standards. This is a major benefit for consumers and a huge opportunity for advisers.”
The FAMR report says the technology should be available to consumers by 2019.