The People’s Pension responds to the Queen’s Speech

The People’s Pension responds to the Queen’s Speech

Responding to the Queen’s Speech, Gregg McClymont, director of policy at The People’s Pension, said:

“It’s good to see the return of the Pensions Schemes Bill mentioned in today’s Queen’s Speech. But, to make the pensions dashboard a success, it’s vital that savers can see all their pension information – including the State Pension and public pensions – in one place.

“And if the Government is intent on delivering multiple dashboards, a number of measures are necessary to gain the public’s confidence. Total coverage is crucial; charges must be included from the outset to achieve transparency; and tough consumer protection measures are needed to ensure savers’ best interests are always put first.”

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Government commitment to pension finder service

Government commitment to pension finder service but warns private sector dashboards must operate under legal duty to users.

The People’s Pension welcomes Government commitment to pension finder service but warns private sector dashboards must operate under legal duty to users.

Commenting on the government response to the pensions dashboard consultation, Gregg McClymont, director of policy at The People’s Pension, said:

“We welcome the government’s commitment to a single pension finder service that’s free from commercial interest, and support the decision to ensure the information presented and displayed by the public dashboard will be mirrored on any commercial dashboards in the initial phase. This will help savers answer the question our members often ask; ‘what savings have I got and where are they?’.

“A legal duty on all private sector dashboard operators to act in the best interests of savers will be necessary if and when a future government allows commercial dashboards to diverge significantly from the public dashboard model. This is key for consumer protection.

“When four in ten people are unaware that their pension provider may charge them for managing their pension, we urge the government to include pension charges from the outset. It will only be successful if a saver can see their full pensions picture – all pensions and what charges they pay – in one place.”

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Provider calls for legal duty to be placed on dashboards

Leading automatic-enrolment pension provider calls for legal duty to be placed on pensions dashboards, as new report warns savers could be put at risk

The People’s Pension1 is calling for a legal duty to be placed on commercial pensions dashboards to put savers interests first, as a new report warns they could be put at risk without it.

As the government consults the industry on the next steps for the pensions dashboards project, Delivering pensions dashboards in the public interest, commissioned by The People’s Pension and written by consumer champion Dominic Lindley2 , emphasises the need for strong consumer protections when dashboards move from a single non-commercial version to multiple commercial ventures.

In the wake of the report, which sets out a long-term vision on how pensions dashboards can help people manage their finances more effectively, The People’s Pension is calling for a package of measures to ensure savers interests are put first.

These are:

A new legal duty, akin to a fiduciary duty, on dashboard operators to prioritise the interests of savers, overseen by The Pensions Regulator (TPR)3

Giving consumers the legal right to all their financial data, enabling individuals to see a total picture of their finances across pensions, banking, investments, and insurance

Pensions charges disclosed on the dashboard from day one to ensure full transparency

The government to create a statutory body to oversee pensions dashboards in the long-term, with the power to set standards and a clear statutory remit to act in the best interest of consumers

Commenting, Gregg McClymont, director of policy for The People’s Pension, said:

“Government figures suggest that a huge number of people, up to 18 million, could eventually access pensions dashboards. The opportunities are vast but so is the potential for consumer detriment.

“The Port Talbot steel worker’s pension scandal shows how easily things can go wrong. The strongest form of consumer protection is fiduciary law, so we’re calling on the Government to pass legislation to place such a legal duty on all dashboards operators.

“We’re also calling for pensions charges to be disclosed on dashboards from the outset, for consumers to have a clear legal right to all their financial data, and for the creation of a Pensions Dashboards Authority armed with a clear statutory remit to act in the best interest of consumers. This package of measures can strengthen the governance of pensions dashboards in the public’s interest.”

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The People’s Pension respond to Dashboard Feasibility plan

The People’s Pension respond to Dashboard Feasibility Study

B&CE, provider of The People’s Pension, respond to Dashboard Feasibility Study

Commenting on the Pensions Dashboard Feasibility Study, Gregg McClymont, Director of Policy for B&CE, provider of The People’s Pension, said:

“I applaud Government for recognising that such a complex and sensitive project as Pensions Dashboard project can’t be handed over to the private sector to run. Putting the Single Financial Guidance Body in charge, as we’ve long-called for, is in the public interest and a welcome proposal. The emphasis on building a non- commercial dashboard initially, is crucial if the major benefit which dashboard offers – a single register that allows savers to see all their pensions in one place – is to be realised. That’s the big prize, rather than a commercial tool for providers to market their services.

“For the dashboard to become that one-stop shop that savers need it to be, it’s vital that the state pension and public pensions are included as well as workplace and retail entitlements.”

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The People’s Pension calls for body to lead on dashboard

The People’s Pension calls for Single Financial Guidance Body to take lead on pensions dashboard

Responding to the government announcement on the Pensions Dashboard, Gregg McClymont, director of policy at The People’s Pension, said:

“Without the government’s lead on the pensions dashboard, it cannot become the one-stop shop that people need it to be. The state pension and public pensions are unlikely to be included, and unless the dashboard is backed up by legislation, savers won’t be able to see all their pots in one place as many providers simply won’t play ball. The point of it will be lost.

“The People’s Pension alone, with a membership of four million people, has more than three hundred and fifty thousand members who’ve not provided us with a current address – that’s hundreds of thousands of people at risk of losing their pension pot. Although we work hard to trace them, a dashboard, where they can see all their pensions in one place – is needed to help them keep track of all their hard-earned savings and provide them with the information they need to make vital decisions about their financial future.

“The advantages for savers are clear and most importantly it’s what people across the UK want with seven in ten backing the dashboard1. If the government is determined to hand over responsibility, then the Single Financial Guidance Body is the obvious home to ensure accuracy of data and governance.”

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Dashboard has real potential to revolutionise retirement

Pensions Dashboard has real potential to revolutionise retirement – comment from The People’s Pension

Responding to reports that Esther McVey is planning to “kill off” the Pensions Dashboard, Andy Tarrant, Head of Policy at The People’s Pension, said:

“At a time when 14 million people are at risk of not having enough to live on when they retire, it’s astonishing that an initiative aimed at helping millions of people to live comfortably in retirement, could be seen as a distraction by government.

“The government should be doing everything possible to help people plan ahead. With one in five people across the UK having lost track of a pension, the dashboard will help ensure people keep track of all their savings, have all the information needed to make the important decisions about their financial future, and will allow them to watch all their retirement savings grow and compound over time, helping them to understand what their retirement might look like.

“More than seven in ten people 1 have told The People’s Pension that they want to be able to see all of their pensions in one place. The dashboard has real potential to revolutionise retirement planning for millions of people across the UK and we urge the government not to u-turn on their previously strong support for the initiative.”

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Lost pension pots

Lost pension pots

As the ‘job for life’ is a thing of the past, The People’s Pension were curious to learn how much people are aware of their pension savings and how they keep track of their pensions as they move from job to job.

The research

On behalf of The People’s Pension, YouGov carried out an online survey with 2,297 UK adults in employment aged 18 to 66, between 16 and 20 February 2018.

Findings

The research reveals that, one in five people have lost track of a pension and that nearly half (47%) don’t know how much their retirement savings are worth. Three out of five adults don’t know where all the details are of their pension savings while two in five don’t know they pay charges on any of their pensions.

Outcome

This research highlights how the pension industry could be doing a better job at helping people understand how much all their retirement savings are worth. Educating people that they can move their pensions between pension providers is one way they can keep track of them, especially when 46% of people said they would be encouraged to do this if it meant it was easier to manage their pension savings in one place, but two out of five are unaware they can do this.

The findings also echo calls from cross-party MPs for a single dashboard to allow savers to view their pensions – state, defined contribution and defined benefit – in one place. Anything other than this would leave savers confused and only able to see part of their full pension picture.

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Seven out of 10 back calls for a single pensions dashboard

Seven out of 10 workers back calls for a single pensions dashboard, according to research by The People’s Pension

Seven out of 10 (72%) UK workers with a private or workplace pension scheme back calls for a single pensions dashboard to help them keep track of their savings, as nearly half (47%) admit they don’t know how much they’ve saved for their retirement.

Research from The People’s Pension1, conducted by YouGov2, also found that:

  • Six out of ten UK workers with a private or workplace pension scheme (60%) don’t know where the details of all their pensions are
  • One in five respondents (22%) have lost track of a pension
  • Nearly a third of respondents (29%) don’t know who their current workplace pension is with3

Ahead of the government’s delayed Feasibility Study4, The People’s Pension is calling for a single, public-good pensions dashboard, free from commercial conflict and backed up by legislation, to ensure all providers supply the necessary information to allow savers to see all their pension pots in one place.

Commenting on the survey findings, Dave Brown, Director of Strategy and Innovation at The People’s Pension, said:

“The current pensions system creates too many hurdles for people who want to find out how much they’ve saved and puts people off from planning for retirement until the last minute.

“The average person builds up 11 pension pots over their lifetime, causing, as these findings highlight, a very real risk that pots will be lost or forgotten, with people left unaware of what they’ve saved.

“The pensions dashboard is vital to help people know how much they’ve saved and where their savings are. It has real potential to revolutionise retirement planning, but only if people can see all their pensions in one place.

“A single dashboard, free from commercial conflict and backed up by legislation, as called for by cross-party MP’s, will save people significant amounts of time, stress and hassle. It will ensure they keep track of all their savings, have all the information needed to make the important decisions about their financial future, and will allow them to watch their savings grow and compound over time, helping them to understand what their retirement might look like.”

Discussing his pension savings, Sean from Yorkshire and Humber said:

“Like a lot of people, I’m a layman. I don’t really understand the terms, I don’t really understand what I’m looking at, I don’t know how to compare performance. It would be nice for someone like me to have an easy-to-follow website where you could look at how things are performing, and how well your pensions are going.”

Responding to the survey, Cecilia from London commented:

“It’d be great to have an app which would collate all my pensions together and would let me look at what I’ve managed to save and what my projected pension might be.”

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