I always thought the ABI needed some left field thinking on the pensions dashboard, and they’ve got it in Matt Burrell who has written a blog that’s argues that pension providers are best trusted to show us our pension data. He’s also referenced Frank Zappa\s 1975 album, One Size Fits All – which no one remembers.
One size doesn’t fit all, but Matt argues that with the help of open pensions we can use the universal features of a pension dashboard to make pensions a little easier.
Here is Matt’s blog which appeared originally on the ABI’s website.
Matt says; One size doesn’t fit all
It is one of the generally accepted facts of the modern world that other than in the musical stylings of Frank Zappa, one size does not fit all. From exercise regimens to entertainment, people increasingly expect goods and services they receive to be tailored specifically to their own requirements. Pensions information should be no different.
There are around 32.5 million people working and accruing pension entitlements in the UK (if you include state pension) and expecting them all to access pensions information in a uniform manner is misguided to say the least.
This is the fundamental reason why I have always been opposed to the idea of a single pensions dashboard – the same thing that works for a 65 year old will probably not work for a 22 year old. Without meaning to sound like the stereotypical millennial snowflake I am, everyone is different, everyone is special and they deserve to have their needs met.
In order to validate this theory, we commissioned some polling to ask consumers where they would be comfortable accessing their pensions information and where they would find it convenient. Lo and behold there were substantial differences in the options selected by people with different characteristics. Whilst there were some differences by region and employment type, the most profound difference was by age. Our research found that:
- 60% of 25-34-year-olds would be comfortable viewing their pensions through their mobile banking app, in comparison to only 11% of those aged 65+.
- 20% aged 65+ comfortable receiving their pension data via post, in comparison to only 4% of 18-24-year-olds.
- 61% of those aged 55-64 with would find it most convenient to view their savings through their pension provider’s website, in comparison to 37% of 18-24-year-olds.
The overall landscape also reflected a diversity of opinions when it comes to where people would like to see their pensions information.
These findings to go to the heart of the issue: if you want people to engage with their pensions then you need to make it easy for them.
Parts of the pensions industry have a paternalistic tradition that sometimes takes the form of talking down to people. This has frequently taken the form of one letter a year and a view that it’s best for the average person on the Clapham omnibus not to engage at all anyway.
Pensions Dashboards area once in a generation opportunity to shake up this dynamic by giving people the ability to access their information in a safe place that suits them. For some people this will be the Money and Pensions Service, for others it’ll be their provider or their banking app.It could be another body like a consumer group or trade union. If you choose to only cater to one of these segments, don’t be surprised when very few people use the end product.
Pensions Dashboards, along with open banking and the wider concept of open finance, are at their core about self-knowledge. At the moment, most people in the UK muddle through their financial lives with little information and knowledge, meaning they don’t get the most out of the assets they have.
By giving people access to their information when they want, in the way that they choose, we can change this and empower people to live better more financially healthy lives.
Henry says..let’s keep the question “open”
On Wednesday at 5pm, about 50 of us – I hope Matt included – will gather in WeWork Moor Place to hear how the pension dashboard is developing. We’ll hear from Romi Savova who is on the implementation group but not constrained from speaking her mind.
We’ll also hear from Gavin Littlejohn who’s on the FCA’s open finance group and was one of the people who made open banking happen.
My guess is that once you set in place the infrastructure needed to find our pensions, the rest of the information needed for people to make decisions, will follow. Neither the Government or the ABI can stand in the way of people’s reasonable expectation to see their data as they’d like it shown.
So whatever answers we get today are based on the limitations of the question. The dashboard is aiming for completion in 2024/5 by which time we’ll have an iphone 16 and people will be looking at today’s technology like we look at early mobile phones.
Which is why questions on pension dashboards have to stay open