Savers will only be engaged in the pension dashboard if they have trust and confidence in the information it provides, according to the pensions minister.
Speaking yesterday at a pensions dashboard development day event, pensions and financial inclusion minister Guy Opperman said all parts of the industry need to be on board with the project to make it a success.
He said: “Proper engagement will only happen if the consumer has trust in the dashboard and confidence that the information is complete to the extent that it is useful.”
Opperman added: “The independent user research commissioned through the Money Advice Service highlighted the low tolerance among consumers for an incomplete dashboard.”
A Department for Work and Pensions feasibility study is currently looking into whether some kind of “compulsion” is needed to get the dashboard ready by a certain time.
Opperman said yesterday: “If it is appropriate and necessary to legislate to bring schemes on board within a reasonable timeframe, we will do so.”
He also said consumer protection will be crucial for the dashboard’s success.
Opperman said: “Whatever our approach, and particularly if we enable expansion into the open market, a consumer protection framework will be vital to mitigate the risks of poor choices, potential misselling and scams. And of course, the data must be kept secure.”
He added: “We need to maximise people’s engagement in their pension while maintaining their trust. We will ensure that consumer interests are properly safeguarded and their information protected.”