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) Budget 2016: – “Government will ensure industry designs,  Very time-consuming to obtain pensions overview funds and launches a pensions dashboard by 2019”  £400+ million in unclaimed pension savings (DWP) • Auto-enrolment: millions of new pension savers  £400+ million dormant assets (Dormant Assets • Commission) Freedom and Choice: consumer expectation of control  Increasing longevity but decline of DB pensions in • private sector makes better awareness of retirement Recommendation in Financial Advice Market preparation key Review  Consumer expectations rising given on-line • Remedy in FCA Retirement Income Market experiences elsewhere Study Policy drivers reflect consumer needs – several policy objectives benefit from Pensions Dashboards

Pensions landscape: The size of the challenge Private sector Public sector Insurers SIPP/personal Third-party Master DB DB pension administrator trusts in-house in-house 30+ firms 130+ firms 25+ firms 70+ trusts 8,600+ 220+ schemes schemes 35 million 4 million 18 million 7 million 11 million 6 million pension pension pension pension pension pension pots pots pots pots pots pots Sources: ABI, TPR, HMT and FCA data 2016 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

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 Discovery: Development: Demonstration: Sep to Dec 2016 Jan to Mar 2017 Mar to May 2017  Coalition of 17 pension firms  6 FinTechs chosen from 21 bidders  Demonstration to Government  Resources secured for project  17 pension firms agree test dataset  Challenge Panels showcasing  Project scope agreed  Basic consumer research conducted prototype and proposals for the future with stakeholders  Data standards for prototype  DWP agree test dataset  Tech Sprint bringing together  Architecture for prototype  3 pension firms develop new systems FinTechs to explore innovative  Identity standards for prototype  6 FinTechs invest £1m in prototypes ideas for the future post-2019  User (Customer) stories for prototype  Two parallel prototypes developed  Lessons learned and next steps  80 FinTechs invited to bid ‘pro bono’  ‘Plumbing’ shown to deliver results Industry and FinTech have come together to deliver the prototype project proving the technology

An “Open Pensions” network Dashboards Dashboards Dashboards Pensions IDP( IDP(s) Finder Service(s) s) Integrated Service Providers (ISPs) Pension Provider Pension Provider State (or Admin) (or Admin) Pension Indirect Connect Direct Connect Pension Pension Schemes Schemes Consumers choose a dashboard. Solution needs Pension Finder Service(s), DWP, Identity Providers and firms connecting directly or using 3 rd parties (ISPs)

Demonstration of Prototype See Pensions Dashboard Prototype demonstration video

There could be m any ‘Dashboards’ April ‘Tech Sprint’ showed several

Industry-led interim project to continue momentum Consumer research Industry research Workshop with consumer Interviews with stakeholders organisations across the industry Qualitative consumer research Workshop with industry International research associations & interviews

Industry-led interim project to continue momentum Data standards Requirements Identifying minimum Engaging industry and regulators on guidelines viable product Review of data quality Digital identity

Recommendations to enable pensions dashboards Legislate to compel schemes to share data at customer’s request Ensure data is comprehensive Include State Pension data Enable a Endorse a non-commercial service network of trust 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

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

What is happening now? October 2017 – Pensions Minister confirmed DWP would be responsible for the dashboard DWP Feasibility Study

Thank you http://pensionsdashboardproject.uk/