Treasury minister Harriet Baldwin has called on the private sector to take the lead in development of a ‘pensions dashboard’ for savers.
The idea of creating a pensions dashboard formed part of the FCA’s recommendations to improve the way the annuity market operates after a thematic review, published in December 2014, found competition “is not working as well as it could” for savers.
Speaking to the Work and Pensions select committee earlier today, Baldwin said she does not believe it is the role of Government to deliver the dashboard, which would allow people to see the value of all their pensions in one place.
She said: “I actually don’t think it would be our role to come up with what’s the best way to do that for everybody. I’m not sure I see that as the role of Government.
“I think it would be the role of Government to try and enable, and see if there are any regulatory barriers that prevent the private sector from innovating in this area.”
Speaking to Money Marketing, fellow committee member and Pensions All Party Parliamentary Group chair Richard Graham says: “I’m positive the Government doesn’t want to lead on it.
“You only have to look at the experience of when it has tried to make efforts in sectors like health to understand that.
“So the industry has to take the lead, but the question remains who is going to do that. And perhaps then they can sell it on to the likes of the FCA.”
Baldwin also suggested the pensions dashboard idea could be expanded to incorporate other forms of saving.
She said: “There are examples around the world where people already have the technology on their iPhone to look at their pensions and savings all in one application that’s been brought in from a range of different providers.
“That’s been brought about by the private sector and financial technology.
“If there are financial technology companies or private sectors providers who are able to come up with that now, I think that it would be something that would be extremely popular and welcomed by consumers.
“I probably should be just setting out that invitation to innovate something in that direction, because it has been done in other parts of the world.”