Source · Select Committees · Work and Pensions Committee
Recommendation 21
21
Acknowledged
We welcome the work being done to improve engagement and support savers in making decisions...
Conclusion
We welcome the work being done to improve engagement and support savers in making decisions while they save, for example, through the development of pensions dashboards and the Mid-Life MoT and simpler annual benefit statements. DWP, MaPS and the FCA should continue to explore ways that savers can be supported to take control of their finances through information, education and support from pension schemes and employers. We also welcome the fact that, alongside this, initiatives are being progressed with the aim of improving outcomes for savers even if they do not engage, such as the development of a framework to help employers judge whether the scheme they have chosen for auto-enrolment represents good value for money for savers. As we said in our report on Accessing Pension Savings, there is demand for the further development of Collective Defined Contribution (CDC) schemes in future and it is right the Government continues to support this. We will return to look at these initiatives as they develop. (Paragraph 137) How to move forward
Government Response Summary
The government will continue to help people become more informed savers, and are working closely with delivery partners to do so. The FCA has published rules for personal pension schemes, and are consulting on rules for dashboard operators.
Government Response
Acknowledged
HM Government
Acknowledged
The government will continue to help people become more informed savers. It will take a combination of action by government, employers, pension schemes, and the regulators to ensure people are able to take control of their finances. With record numbers of people saving for retirement and a shift toward more people with multiple pension pots, it is more important than ever for people to understand their pensions information and prepare for financial security in later life. Savers are already signposted or nudged to pension guidance and provided with tools that can help them take control of their finances in a variety of ways, including Simple Annual Benefit Statements, the Stronger Nudge to Pensions Guidance, Wake-up packs, and the activity of schemes themselves, such as the industry-led Pension Attention campaign. This will be strengthened in future, by pensions dashboards and the mid-life MOT. Pensions dashboards will support savers to make decisions about their pensions, help them to reconnect with their lost pension pots and enable them to see what they have accrued so far and an illustration of what they might expect in retirement. Users of pensions dashboards may engage with their pensions in a number of ways. For instance, they could seek further information about their pension using the contact information displayed on dashboards. Such increased engagement could help individuals build a greater sense of ownership of their pensions. We are working closely with delivery partners, including the FCA and MaPS. The FCA published its final rules for personal and stakeholder pension schemes at the beginning of November. They are currently consulting on rules for dashboard operators, alongside MaPS’ consultation on design standards. Taken together, these proposals will set out requirements and expectations for dashboard service operators. We will continue to explore further ways government, pension schemes, and employers can support savers to take control of their finances.