An introduction to the Pension Dashboard Project Yvonne Braun - Director of Policy, Long Term Savings and Protection, ABI

Transcription

1 An introduction to the Pension Dashboard Project Yvonne Braun - Director of Policy, Long Term Savings and Protection, ABI Project Lead, Pension Dashboard Prototype Project 1

2 Policy Drivers for the Project HM Treasury: Budget 2016 FCA: Financial Advice Markets Review FCA: Retirement income market study 2

3 Policy Drivers reflect consumer needs The DWP estimates people will acquire up to 11 pension pots during their career. Getting an overview proactively is very time-consuming. Many people lose track of their pension pots DWP estimate: 400 million in unclaimed pension savings; Dormant Assets Commission estimate: 400 to 500 million dormant assets in pensions and protection insurance. Meanwhile, the decline of DB and increasing longevity means planning for retirement has become even more important. And digitally enabled retail financial services elsewhere, for example in banking, mean consumer expectations are rising. 3

4 The scale of the task (all figures estimates) Pensions Landscape Insurers 30 firms SIPP/personal pension 130 firms Third-party administrator 25+ firms Master trusts ~70 trusts Public Sector In-house 220 schemes Private DB/DC In-house 8,614 schemes 20.4 million pots/ memberships 4 million pots/ memberships 18.4 million pots/ memberships 6.7 million pots/ memberships 10.6 million pots/ memberships 5.7 million pots/ memberships Minimum total number of pots = 63.8 million / memberships 4

5 Pensions Dashboard Prototype Cross-Industry Project Purpose: The purpose of the pension dashboard is to enable consumers to gain a holistic view of all their pension pots. This will help ensure that consumers don t lose touch with their pensions, can get a sense of their overall preparations for retirement, and empower them to make decisions Prototype Project objectives: 1. Agree and document the design of an [initial] infrastructure for data sharing 2. Build and demonstrate a basic working prototype using anonymised [data] 3. Learn lessons on challenges and potential solutions for future industry-wide dashboard infrastructure Terms of Reference and Vision as adopted by Steering Group Sep 2016

6 Governance of the Cross-Industry Prototype Project The ABI s role is to act as the project manager to deliver HM Treasury s Pensions Dashboard prototype for demonstration to the Economic Secretary to the Treasury in March

7 Prototype Contributors, Development Partners and Participants Contributors AON Hewitt Aviva Fidelity HSBC Legal & General LV= NEST NOW: Pensions People s Pension Phoenix Group / [Abbey Life] Prudential Royal London Scottish Widows Standard Life Willis Towers Watson Zurich Development Partners Runpath Experian Origo Aquila ITM Safran Other Parties PLSA Participants MoneyHub Wobi Pension Company Intellect Abaka MyFutureNow Festina Altus SystemSync Origo (Standards) 7

8 Pensions Dashboard Ecosystem Find me, my pensions and their value Dashboards ID Pensions Finder(s) Service Providers State Pension Pension Providers

9 In scope of Prototype Basic information for State (DWP), DC & DB pensions (pre-retirement) Design and initial build of the Pensions Dashboard (as a system of components) Compatibility of solution with Gov. Digital. Service Verify roadmap Connection to more than one pension provider s test systems Iterative development of Pensions Dashboard (as a system) with key parties Demonstration of Pensions Dashboard (as a system) with anonymised data Documentation of proposed data standards for Pensions Dashboard (as a system) Consideration of challenges to development and adoption for 2019

10 Out of scope of Prototype Information on non-pension savings Information on specific assets in pension savings Information on schemes post-retirement Information (other than an indication) of detailed product features including charges Information on public sector schemes Information on pension protection fund schemes Production build of the Pensions Dashboard Live connection to DWP (so this will be simulated) Full solution of find person problem but reported upon as part of data standards

11 Moving into the Demonstration Phase The Prototype Project is about to enter the demonstration phase: Demonstration of the Prototype to Ministers at the end of March. Tech Sprint in mid April which demonstrates the prototype and brings together policy experts, consumer representatives, industry and FinTechs to explore innovative ideas for the future. A series of events to demonstrate the prototype and share governance proposals for the future with stakeholder groups. 11

12 What we believe needs to happen to make dashboards a reality in 2019 Legislation to require providers and pension schemes to supply pensions data in a standardised format to the dashboard infrastructure at the customer s request. A regulatory framework to strike a balance between innovation and consumer choice and consumer protections dashboards must not be a vehicle for scammers or lead generators. Setting up a governance body or implementation entity to establish data standards and data security, as well as an operational model. Wide consultation. An interim phase to do the preparatory work to make these things happen. 12

13 Questions opportunities for advisers Will the pension dashboard infrastructure reduce the manual work involved in the initial fact-find? Agree Neither agree nor disagree Disagree Don t know Will the dashboard infrastructure reduce the cost of advice? Agree Neither agree nor disagree Disagree Don t know 13

14 Questions governance of the infastructure Do you think the Government should legislate to require providers and schemes to make data available? Yes No Don t know Do you think the FCA should regulate dashboard operators? Yes No Don t know 14

15 Questions? Contact: