Pensions dashboards – information to be provided
The pensions dashboards are intended to offer individuals access to information about their pension savings, including workplace pensions, in one place. That information will include an estimate of how much pension the individual has built up already and how much they may have when they retire (their ‘estimated retirement income’).
Pension schemes providers will be required to provide certain information to members via the dashboards including:
Administrative data
This includes the scheme name, the period of membership, the name and contact details for the administrator and, if available, the employer’s name. Member’s date of birth will also be uploaded to enable dashboards to show the time to retirement (the date of birth itself will not be shown on dashboards).
Signpost data
These are hyperlinks to websites where the member can see other useful information about the scheme, such as information on costs and charges, the scheme’s statement of investment principles and the scheme’s implementation statement.
Value data
This details how much pension the member has built up already and how much they may have when they retire (their ‘estimated retirement income’).
Contextual information
This helps members to make sense of the value data.
Impact on the workforce
It is anticipated that once the dashboards become available and individuals check the value of and expected retirement income from their workplace pensions arrangements many will be disappointed. This may be especially so for those who are nearer retirement age and who may realise that they either cannot afford to retire or that they will not be able to maintain the lifestyle that they had hoped for in retirement. This may prove to be an issue for employers including in relation to employees who as a consequence choose to retire much later than planned and/or query or challenge the value of workplace pensions arrangements that they have been admitted to by their employer.
Actions for employers
Employers should consider what information is and has been provided to employees in relation to pensions as part of any financial education programme it has in place and also what is provided directly by the pension scheme provider(s).
Consideration should be given to the timing of the launch of dashboards for employees and what steps require to be taken around that time to deal with queries/issues likely to be triggered from the workforce.
We can support employers on various aspects of provision of employee benefits including in relation to:
- engagement with employees to enable understanding of the importance of pension savings and planning for retirement.
- responses to queries from employers in relation to pensions matters.
- compliance with auto-enrolment obligations.
