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Pension dashboards, which are designed to make it easier for people to decide where their pension is best placed, are expected to be released next year along with league tables for pensions. The aim is to allow pension savers to see how their workplace pension schemes compare to other pension providers in the marketplace.
The pension dashboard has been discussed for years, by everyone from the government to scheme providers and financial advisers. But the FCA and the TPR are consulting on a new 'Value for Money' framework for workplace pensions, and assessments are due to be published from 2028.
Savers will be able to compare providers, including workplace pensions, based on charges, returns, and quality of service once the dashboards are fully set up. It will help people to get the best value for money for their pension contributions by checking their provider against the league table.
The aim of the pension dashboard has always been to create an easier way of comparing pension providers for the general public. Pensions at their simplest are tax-
Rachel Vahey, head of public policy at AJ Bell, said: "The Government has set out an ambitious programme of reforms that has the potential to transform workplace pensions, making it easier for people to compare pensions and switch to get a better deal.
"Pension savers deserve to know how well their pension scheme is performing. 'Traffic lights' league tables must be easy to understand and help people make more informed decisions about their retirement savings, rather than burying them in technical language or complex metrics."
You will be able to see all the details of all your pension plans in one place once the dashboard is launched. This will include both state and private pensions, and which pension scheme provider your pension is with. You will see contact details, and the current value of the pension, along with a prediction of what it could generate for you in income once you reach retirement age, according to AJ Bell.
The first incarnation of the dashboard will be accessed through MoneyHelper, which is run by the Money and Pensions Service (MaPS). But it's expected that other companies, such as pension providers, banks or your employer, will all offer a pension dashboard eventually. The MaPS dashboard is expected to be available to the public in financial year 2027/28.
Ms Vahey said: "Greater transparency should empower people to take control of their retirement planning. Whether that means increasing contributions, reviewing their investment strategy or consolidating pension pots with a provider that better meets their needs for better information, service, price, or wider investment choice, giving them more opportunity to improve their long-
Aside from the impending launch of the pension dashboard, and the league table of pension funds, the Government has also set out a 'roadmap' timetable for workplace pensions reform. This includes aiming to create 20 defined contribution 'megafunds'. A defined contribution pension is a pension where what you eventually receive depends on what you put in and how that money has grown over time.
It has also suggested other reforms, such as the consolidation of dormant small pension pots, and introducing a series of default retirement options for workers saving into their workplace pension. These so-
Larger workplace pension schemes will have to publish Value for Money assessments from 2028, leaving them competing to show how well their scheme is performing. This is based on cost, investment returns, and how good the scheme's administrative support is. They will be scored from red to green in a traffic light system, which goes from poor value, to outperforming on value. The worst performers will be expected to improve, or close.
Other changes to workplace pensions include the scale provisions, which require "all defined contribution multi-
She added: "This will mean that some pension savers are moved to different pension schemes, as their workplace pensions go through a transitional period. "Combined with pensions dashboards, these reforms have the potential to create a new generation of more engaged savers. For the first time, people will be able to see what pension savings they have built up across different providers, alongside clearer information about how well those pensions are delivering for them."
If you would like to find out more about how the pension dashboard and other changes will affect you or your business, then please get in touch with us on 01709 327 215 or email info@branagans.co.uk and we will explain what you need to know.