where are we now? Kathy Cruse, Willis Towers Watson January 2018 - - PowerPoint PPT Presentation

The Pensions Dashboard where are we now?

Kathy Cruse, Willis Towers Watson

January 2018

Background – Policy drivers and consumer needs

• 11 pension pots during an average career (DWP)
• Very time-consuming to obtain pensions overview
• £400+ million in unclaimed pension savings (DWP)
• £400+ million dormant assets (Dormant Assets

Commission)

• Increasing longevity but decline of DB pensions in

private sector makes better awareness of retirement preparation key

• Consumer expectations rising given on-line

experiences elsewhere

• Budget 2016:

– “Government will ensure industry designs, funds and launches a pensions dashboard by 2019”

• Auto-enrolment: millions of new pension savers
• Freedom and Choice: consumer expectation of

control

• Recommendation in Financial Advice Market

Review

• Remedy in FCA Retirement Income Market

Study

Policy drivers reflect consumer needs – several policy objectives benefit from Pensions Dashboards

Insurers 30+ firms Third-party administrator 25+ firms Public sector DB in-house 220+ schemes Master trusts 70+ trusts Private sector DB in-house 8,600+ schemes

35 million pension pots 18 million pension pots 11 million pension pots 6 million pension pots 7 million pension pots

SIPP/personal pension 130+ firms

4 million pension pots

Pensions landscape: The size of the challenge

Complex landscape of (conservative estimate) 80 million pots – but around 100 parties administer 80% of pots - all would need to share data at members’ request so they can find their pensions

Sources: ABI, TPR, HMT and FCA data 2016

Where we are now, and how we got here

OIX pension finder alpha Dashboard prototype project Dashboard interim project Feasibility study Led by Money Advice Service Industry-led, reporting to HMT Industry-led DWP Jan 2016 – May 2016 Sept 2016 – May 2017 May 2017 – Sept 2017 Oct 2017 – Apr 2018

Agile collaboration in three phases

 Coalition of 17 pension firms  Resources secured for project  Project scope agreed  Data standards for prototype  Architecture for prototype  Identity standards for prototype  User (Customer) stories for prototype  80 FinTechs invited to bid ‘pro bono’

Industry and FinTech have come together to deliver the prototype project proving the technology

 6 FinTechs chosen from 21 bidders  17 pension firms agree test dataset  Basic consumer research conducted  DWP agree test dataset  3 pension firms develop new systems  6 FinTechs invest £1m in prototypes  Two parallel prototypes developed  ‘Plumbing’ shown to deliver results  Demonstration to Government  Challenge Panels showcasing prototype and proposals for the future with stakeholders  Tech Sprint bringing together FinTechs to explore innovative ideas for the future post-2019  Lessons learned and next steps Discovery: Sep to Dec 2016 Development: Jan to Mar 2017 Demonstration: Mar to May 2017

An “Open Pensions” network

Consumers choose a dashboard. Solution needs Pension Finder Service(s), DWP, Identity Providers and firms connecting directly or using 3rd parties (ISPs)

Dashboards IDP( s) State Pension Pensions Finder Service(s) Dashboards Dashboards Integrated Service Providers (ISPs) IDP(s) Pension Provider (or Admin) Direct Connect Pension Provider (or Admin) Indirect Connect Pension Schemes Pension Schemes

Demonstration of Prototype

See Pensions Dashboard Prototype demonstration video

There could be many ‘Dashboards’ April ‘Tech Sprint’ showed several

Industry-led interim project to continue momentum

Consumer research

Workshop with consumer

• rganisations

Qualitative consumer research International research & interviews

Industry research

Interviews with stakeholders across the industry Workshop with industry associations

Industry-led interim project to continue momentum

Data standards

Engaging industry and regulators on guidelines Review of data quality

Requirements

Identifying minimum viable product Digital identity

Ensure data is comprehensive Legislate to compel schemes to share data at customer’s request Include State Pension data Enable a network of trust Endorse a non-commercial service Enable “Open Pensions” data sharing via third parties Regulate third party services showing customers data Make it happen Set an implementation and funding plan, timetable and communications Establish an implementation entity and governance body Ensure it works Endorse common data standards Back a “pension finder” infrastructure linking schemes to dashboards Agree an identity assurance scheme

Recommendations to enable pensions dashboards

Minimum Viable Product – Data Standards

Provider name, Scheme name & address Scheme phone no. & opening times Scheme web page Scheme email DC Valuation Date Current Value Transfer value Special Terms Indicator Special Terms Text Valuation Basis Anticipated Income Additional Accrued Lump Sum Valuation Date Special Terms Indicator Special Terms Text Future payment expected Annualised contribution Type of contribution NiNo Forename, Surname Date of Birth Address, Country, Postcode Pension Type Employer name, start/end Scheme name & number Membership start dates Date of last payment Selected retirement date AVC Indicator AVC Provider

ID Pension Details AVCs Contributions DB Valuation Provider details DC Valuation

What is happening now?

October 2017 – Pensions Minister confirmed DWP would be responsible for the dashboard DWP Feasibility Study

Thank you http://pensionsdashboardproject.uk/