The DWP has published a new timeline for the long-awaited pensions dashboard launch in “welcome” news for millions.
The pensions dashboards will allow people to view all of their pension information, including their state pension, for free, online in one place.
Pensions dashboards will also help reunite savers with lost or forgotten pensions – an increasingly prevalent issue, with as many as 4.8 million pots currently considered “lost”.
The aim is to help put savers “back in control” and help reconnect them with their lost pots so they can plan better for retirement.
The project was first mooted in 2015 and was originally planned to launch in 2019. The last estimate was that it would be rolled out by August 2023, however, technicalities mean the deadline was extended again.
In the newly published guidance, the Department for Work and Pensions (DWP) has now confirmed the first connections to the national pensions dashboard are scheduled to begin in August 2024.
Larger pension schemes with 20,000 or more members are expected to have completed connection by the end of April 2025.
Meanwhile, medium-sized schemes and providers, including occupational pension schemes with less than 1,000 members, will have until 2026 to connect.
The latest connection date for occupational pension schemes with between 100-124 members is set for September 30, 2026.
In a written statement shared alongside the guidance, Pensions Minister, Paul Maynard, said: “The timetable prioritises connection of the largest pension schemes and providers, so that crucial user testing can quickly take place at scale, with the first cohort expected to have completed connection by the end of April 2025.
“Whilst the timetable is not mandatory, it is a legal requirement that trustees or managers of occupational pension schemes and providers of personal and stakeholder pensions have regard to this guidance.”
Kate Smith, head of pensions at Aegon, commented: “We welcome that the DWP has finally published its pension dashboard guidance, which includes the new pension scheme’s connection timetable. This confirms that pension dashboards will become a reality, reconnecting millions of people with their pensions in one place online, helping them to plan for their future selves.
“As expected, the largest pension schemes, including the largest master trusts and largest FCA-regulated pension providers will be expected to connect to the pension dashboard ecosystem by the end of April 2025.
“The remaining schemes will connect in order of size with the expectation that all schemes will have connected by October 31, 2026.”
Ms Smith added: “We hope that all schemes will follow the guidance, to ensure connection is carried out in an orderly manner avoiding ‘last minute’ connections and potential log jams. The pension dashboard programme and Government will need to monitor this closely.”
Karl Lidgley, client manager, third-party administration at Hymans Robertson, said: “It’s great to see the final dashboard connection guidance has now been issued by DWP, allowing the industry to move forward with some certainty into a delivery phase.
“There are still a few pieces in the jigsaw puzzle, but schemes now know when they are required to connect.
“Dashboards will deliver digitalisation on a new scale in the pensions industry and significantly improve accessibility to pensions information for consumers.
“Longer term, with commercial dashboards on the horizon, it will also support better consumer outcomes, allowing everyone to access their current pension savings regularly, and take positive action to improve their retirement outcomes in the future.”