The Work and Pensions select committee has criticised the government for failing to commit to a timetable for making state pension data available via pension dashboards.
In its report on pension costs and transparency, published August 5, the committee had set out a series of recommendations aimed at making information about consumers’ pensions more transparent and readily available.
In response, the government agreed that state pension information should be made available via dashboards “in order to give people a comprehensive view of their pensions” but it failed to say when it planned to achieve this.
The MPs have now said they were disappointed at the lack of a timetable for introducing this information.
They alleged that although the government had pushed for the industry to have its pensions data ready for the launch of pension dashboards, it was not committed to prepare its own data in time, highlighting that state pension projections were already available through Gov.uk.
The new pension dashboards will ensure people throughout the UK have easy access to information about their pensions, who manages them, and what they are worth.
The government will introduce multiple pension dashboards, with the first one being developed by the government’s new guidance body, the Money and Pensions Service.
Tom Selby, senior analyst at AJ Bell, said the dashboard will only work if all pension pots are included.
He said: “Given the state pension is the foundation upon which people build their retirement plans, it is critical the government makes this information available via dashboards as soon as possible.
“Without total coverage of people’s pensions, both state and private, the impact of the reforms and usefulness of dashboards in enabling better retirement decisions will be limited.”
The committee’s report also recommended that pension funds should be obliged to disclose costs in a uniform template while also calling on the government to review the level and scope of the pensions charge cap.
If you would like to speak with an adviser, please contact us on 0191 384 1008.