Source · Select Committees · Work and Pensions Committee
Recommendation 18
18
Acknowledged
Many savers have multiple pension pots with different providers and schemes.
Recommendation
Many savers have multiple pension pots with different providers and schemes. At the moment, it is not possible for providers and regulators to aggregate data on individual savers, rather than individual pension pots. This makes it more difficult to ensure that savers are getting the advice they need. We recommend that aggregating and individual savers, rather than pots, becomes a key priority for the FCA, the Pensions Regulator and the Department for Work and Pensions. As a matter of urgency, so as not to delay the programme, the Department for Work and Pensions should work with the Pensions Dashboard Programme to establish whether pensions dashboards may be a route for doing this. (Paragraph 76) Protecting pension savers—five years on from the Pension Freedomss Accessing pension savings 63
Government response summary AI-generated
The Government agrees that digital tools have an important role and encourages MaPS to go further in developing its digital offer, supporting MaPS' guidance transformation strategy, but notes some people may need additional support.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
We will consider this recommendation in more detail. DWP is part funding, and sits on the steering group of, a Pensions Policy Institute DC data project to provide individual-level data of pension provision across a number of Automatic Enrolment schemes; specifically, the number of pension pots held by a member, contributions and pension fund size. This is a data amalgamation project, using real data Government and Financial Conduct Authority Responses to the Committee’s Fifth Report 11 for individuals saving, or having saved, into a pension in the UK. It will link the various pension pots which individuals have with different providers, to create a single combined data set that tells us how people are saving for their retirement. The government set out in its response to the dashboard consultation in April 2019 the key design principles that must be adhered to when designing the system. We made clear that the storing of pensions data, beyond caching for performance reasons, will not be allowed in the initial phases of dashboards. We also said that there would be no aggregation of an individual’s information in any part of the ecosystem other than by the pension scheme or an Integrated Service Provider operating on their behalf and in respect of the benefits built up in that scheme. The process of accessing information on dashboards rests on the consent of the individual using dashboards. The nature of an individual’s consent must be clear, explicit, understood and informed. This is explored in further detail in the recently published consultation on the draft Pensions Dashboards Regulations. Our approach is designed to maximise data security and privacy while the new system beds in. Therefore, the dashboards digital architecture would not be able to facilitate the aggregation of individuals’ data to support wider research or policy intervention. MaPS is developing a retirement planning hub in which it will incorporate its own pensions dashboard. This will be used to help support people with personalised guidance at every stage of their pension journey.
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