Workers saving for their pensions have been hit with a setback as the Government announced it is delaying its planned pensions dashboards.
The Mirror reports that the dashboards, designed to help savers locate and keep track of pensions from different jobs, and plan properly for their retirement, had been due to be introduced from August. But in a written statement, work and pensions minister Laura Trott said the Department for Work and Pensions (DWP) needs “additional time” to set up the long-awaited project.
The online dashboards are seen as vital to helping people organise their pension planning. The average Briton changes jobs 11 times in their working life, meaning it is easy to lose track of your pensions.
Pension schemes were due to start connecting to dashboards from August 31, with dashboards to then be made available to the public next year. Some experts expressed frustration at the latest announcement, saying the industry has been left in "limbo", while others defended the postponement, saying it was necessary to work through complexities.
Rachel Vahey, head of policy development at AJ Bell, said: "This is a huge letdown for consumers. Dashboards had the potential to empower pension savers but they've been badly let down by a project that has over-promised and under-delivered."
She added: "The public and industry now are left rudderless, with no idea of the current state of play." Ms Vahey added there is now "no date" for the dashboards' launch - with "major doubts about whether the project can be delivered before the next election".
In her statement, Ms Trott said the project is a significant undertaking, "requiring the development of new technology that will permit individuals to find their pensions by searching thousands of pension schemes which collectively hold millions of pensions records".
She added: "More time is needed to deliver this complex build and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture. Given these delays, I have initiated a reset of the Pensions Dashboards Programme in which DWP will play a full role. The new chair of the Programme Board will develop a new plan for delivery."
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Former pensions minister Sir Steve Webb, who is now a partner at consultants LCP, said: "This latest delay in the rollout of pensions dashboards to the public is deeply frustrating.
"The end goal, of a website where people can see all of their pensions in one place, would be of huge value to pension savers. It will help people to find pension pots they have lost track of and will enable them to rationalise and make best use of the pots that they do have.
"The Government must ensure that any delay is kept to an absolute minimum. The lack of a firm new timetable will leave industry in limbo and this uncertainty must be resolved as soon as possible."
Becky O'Connor, director of public affairs at PensionBee, said: "It is disappointing but not wholly unexpected that the pensions dashboard project - beset with difficulty from the beginning - is facing another delay. People's inability to keep track of their pensions is a growing problem."
However, Yvonne Braun, director of policy, long-term savings, health and protection at the Association of British Insurers, said a reset is appropriate. She said: "There needs to be enough time for testing and onboarding, with the industry closely involved and learning shared widely, to ensure that dashboards work for consumers and that they can fulfil their potential.
"It is also important that work to help firms prepare to connect should continue during this reset."
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