Pensions dashboards – will they ever arrive?

As people continue to move jobs more often than ever before, more small pension pots are being created and forgotten.

The Institute for Fiscal Studies indicated that in 2023 there were around 20 million defined contribution (DC) pension pots worth under £10,000 which are no longer being contributed to. In aggregate, these contained almost £30 billion. Over half of these pots, 12.1 million, were worth under £1,000.

The Pensions Dashboards Programme (PDP) was established by the Money and Pensions Service (MaPS) as part of a wider strategy to solve this issue.

Pensions dashboards will allow people to view all their pensions in one place so they can better keep track of their benefits. But with the programme beginning back in 2019, some are rightfully wondering ‘will they ever arrive?’

When will dashboards arrive?

The short answer is yes; they will arrive soon. All eligible pension schemes must connect to PDP by 31 October, with many having already done so. More than 99% of pension schemes are legally required to connect to the pension dashboards, although some schemes with under 100 members will remain out of scope.

Hopefully, at some time this year, PDP will begin the last phase of their testing, which will mark six months until pensions dashboards go live for savers to use. At that point we will all know the exact date when pensions dashboards will arrive.

How companies can support employees

However, as engaged as benefits professionals may be, it’s important to remember that not all employees will share the same awareness around pension dashboards.

Many may have an awareness that pension dashboards are coming at some point and know broadly what they’re for. But the delays to the programme will have reduced clarity.

So how can employers support their employees to get the most out of pension dashboards?

Communication is key

Companies and their pension schemes don’t have to wait for pension dashboards to arrive to help their employees make the most of them.

Ahead of launch, clear communications can help employees understand what pension dashboards are for and, importantly, help avoid pension scams by being clear on release dates and where the pension dashboards will be visible. Whilst employees should be reminded that pension dashboards are on the way, they should also be clearly told that anywhere offering early access or financial incentives linked to them shouldn’t be trusted.

Conversely, when pension dashboards are available to the public, employers can use their communications to help ensure that their employees can access them safely and effectively, and advice about accessing them should be built into any material already provided about your company’s pension scheme.

Pension dashboard launchpad

It’s notoriously difficult to get employees to engage with their pensions. But when pension dashboards launch, it’s likely they’ll get national news coverage, and many savers will log-on and engage with their pension for the first time.

Pension schemes and their sponsoring employers need to be ready to capitalise on this interest to drive further engagement.

Having wider conversations with employees about their benefits and helping them to complete key administrative actions like updating their addresses and Expression of Wish forms are just one of the ways employers can help generate better outcomes for employees when it comes to their retirement.

It may also be an excellent opportunity to have conversations with employees about where they are in their retirement journey and whether they’d like to increase their contributions to reach their desired lifestyle in retirement.

Pension dashboards are definitely coming. How much employees get out of them depends (at least in part) on how employers and their pension schemes help employees to engage with them.