Responding to the Pensions Dashboard challenge
Paul Pettitt, managing director, Origo, comments on the challenge thrown down by FAMR and the Budget for the industry to launch pensions dashboard by 2019
Pensions Dashboards present the opportunity to take a fantastic step forward both for consumers, who for the first time will be able to click a button to see their pensions in one place, and for the industry, confidence in which can only be boosted by consumers’ increased engagement with their pensions and their ability to take greater control of planning for their retirement.
Hence, Origo welcomes the challenge set by the FAMR and the Budget that a pensions dashboard should be available to consumers by 2019. While the term pension dashboard is often used, as if there will be only one, we believe what we will see is a number of brands developing their own dashboards as a means to engage with consumers, all of which will need the ability to securely access the relevant sources of data to populate them.
So where are we now?
The fact is the technology to enable individual companies to display pension dashboards is in development already in the market.
In addition, Origo is drawing on its 25-years’ experience to work collaboratively with the industry in developing the required open messaging standards and the technology to create the essential capability to safely and securely transmit data from pension schemes to the dashboard providers.
In the recent conference on pension dashboards hosted by Origo and B&CE/The People’s Pension, three essential elements were identified to get dashboards up and running:
1. Identity verification
2. Trusted, secure, messaging facility for data transmission
3. Participation by all industry parties
Identity verification is a crucial element in protecting consumers and there are various initiatives ongoing. Origo is working with the industry on the second point, through the cross-industry Pension Finder Alpha Project, run by the Open Identity Exchange (OIX) and the Cabinet Office. Origo is leading the Architecture and Standards workstream in that project.
Encouraging industry participation
For pensions dashboards to get off the ground, it will require the industry to get fully behind the initiative so that all pension holders can access all the data they require to make informed decisions around their pension and retirement planning.
A lack of broad participation has been flagged as a potential sticking point, however given the industry has now been challenged by Government to make this happen by 2019, this barrier may start to fall away. Participation in the early stages may be low but we believe that should not be allowed to hold back an initiative that will be of considerable benefit not only to consumers but also to the financial services industry and, by getting UK citizens more engaged with their finances, the country as a whole.
FAMR’s recommendation that HMT should co-ordinate the Government’s involvement to ensure that it provides ‘appropriate legislative and administrative support’ as the project develops, will provide welcome backing in getting pension dashboards up and running and available to the consumer.
Visit the Origo website
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