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Treasury may force providers to contribute to pensions dashboard

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Treasury may force providers to contribute to pensions dashboard

Economic secretary to the Treasury Simon Kirby has said the government will consider introducing legislation to force pension providers to contribute to the pensions dashboard. 

The Treasury mandated providers to build the dashboard by 2019 in the Budget in March. 

It will show people all of their pension savings in one place, making to easier to keep track of pension pots when they move jobs. 

Earlier this week 11 providers signed up to the trial of the pensions dashboard system, and said they will help to get a prototype model set up by next March. 

However, critics of the plan have questioned whether all providers in the market will get behind the service if the government does not require them to.

When asked about this at an event marking the launch of the 11 providers' plan, which was hosted by Aviva, Kirby said the government could make rules to force providers to build the dashboard.

‘If there are difficulties with getting people on board, then we will certainly look at legislation or regulation to make it happen,’ he said.

He told providers which have not already signed up to support the dashboard there 'is still time to stand up and join in with the frontrunners, and we will be very pleased to have you on board’.

Some industry players, including platform and Sipp firm AJ Bell have called on the government to add state pension statements to the dashboard when it is launched.

Kirby today confirmed ‘the state pension will be part’ of the dashboard, but did not say whether this will be included in the first model to launch next year.

Lifetime ISA inclusion?

True Potential, managing director David Harrison, said other options should be included within the dashboard, including the lifetime ISA when it is launched. He also said the project could be completed much sooner than set out and delivered in 12 months.

When asked if the lifetime ISA could at some stage be included in the dashboard, Becky Morrison, deputy director of insurance and financial regulation at the Treasury, did not rule this out.

‘We are starting with what we are starting with and it absolutely can go on to include other options,’ she said. ‘So at this stage we are certainly not saying that we won’t [include the lifetime ISA].’ 

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