On the go: The pensions industry doubts whether the pensions dashboards will be delivered on time, as more than three-quarters of respondents to a Pensions Management Institute survey said they thought the project would still not be operational by 2023.
The PMI’s Pulse survey, which polled 110 pension professionals, found 78 per cent of respondents were not confident that the dashboards would be delivered in two years, while just 56 per cent believed their scheme, or the scheme they advised, would be able to provide data by 2023.
Thirty-six per cent of respondents doubted whether their scheme would be able to provide such data, a finding the PMI said indicates a “significant loss of confidence” that pension funds will be able to provide dashboards with the required data before the deadline.
Under current plans, schemes with 1,000-plus members would be onboarded into the dashboards in a first wave, starting with master trusts and Financial Conduct Authority-regulated providers, which would begin to come onboard in spring 2023.
Defined contribution schemes used for auto-enrolment would begin onboarding later in 2023, while all remaining occupational schemes with 1,000-plus members would follow.
Resources and cost were widely cited as barriers to providing data on time. More than half (51 per cent) of respondents cited lack of resources, while 46 per cent pointed to costs as the main obstacle.
A further 44 per cent cited the quality of data required, and 39 per cent saw its format as a challenge.
The direction of pensions policy in general has garnered more favourable reviews, however. The PMI survey found 61 per cent of respondents were satisfied with pensions policy over the past six months, with 62 per cent satisfied with the activities of the Pensions Regulator.
Those numbers dropped slightly when considering the future: 57 per cent were confident the regulator would “focus on the right areas” in the second half of the year, while 50 per cent were optimistic about the direction of pensions policy over the next six months.
Of the policy areas the industry feels need to be addressed, the PMI’s research showed that problems with chair’s statements for DC schemes are high on the priority list.
The most popular idea cited by respondents to improve the process would be to divide the statement into two separate documents; one to be consumer-facing, and the other to record a scheme’s regulatory activity, the Pulse survey showed.
Lesley Alexander, president of the PMI, said: “Our research suggests the industry faces some significant hurdles before [the pensions dashboard] is launched.
“The main stumbling blocks are likely to be the cost of providing the data and the resources required. Despite these challenges, the benefits of getting the dashboard over the line ought to outweigh the cost of its development.
“To ensure the dashboards are delivered efficiently, it is important that the Pensions Dashboards Programme works closely with all those involved in the industry in meaningful collaboration and sharing best practice,” she added.
Tim Middleton, director of policy and external affairs at the PMI, added that there seems to be “no clear agreement” as to “what kind of service the first version of the dashboard is to provide: whether it will seek just to trace where members’ accrued benefits are held or provide information about the benefits themselves remains unclear”.
“Resolving this would at least provide some clarity for the public,” he said.
