Last week I met with the Pensions Minister, Laura Trott MP to discuss the ongoing work to improve transparency and access to pensions data.
Saving for retirement is really important, and something we should all think about long before we near retirement. The move to auto-enrolment into work pensions means many more have some pension savings, with 10.7 million people having been automatically enrolled into a workplace pension to date. However this also means people may have several pension funds in their name or in previous names, and may not know how to access or manage these funds.
Pensions Dashboards will be a new tool enabling everyone to search for their pensions data, giving access to vital information on both private and State pensions. They will provide clear and simple information regarding pension savings in one place online and help people reconnect with their lost pension pots.
I have raised a number of questions regarding this programme and the benefits it will provide to residents as part of my role on the Work and Pension Committee. During our discussion yesterday the Minister highlighted that dashboards will be an interface with industry data, meaning there will be no central database, delivering both security and access to real time information. The Dashboards are currently being developed and will undergo full consumer testing before going live. The Department for Work and Pensions plans to provide an update to Parliament before summer regarding the full timescale for this work.
In addition to work on the pensions dashboards the Minister also updated me on work to ensure pension investments deliver value for money to customers. In addition to monitoring and limiting the charges pension providers can apply, they will also monitor the returns they achieve. Where providers are found to be underperforming, action will be taken to ensure they improve, consolidate or exit the market. This performance information will be made publicly available, improving transparency and enabling those saving for retirement to make more informed decisions about their investments.
I will continue to engage with Ministers, and through the Work and Pensions Committee, in support of this important work to make pensions and savings clearer and more accessible.
