Pensions Dashboard? Not much dash. Lots of bored.
I’ve been getting a lot of questions recently about pensions. Not from ancient people like me, but from young freelancers starting out on their career.
This never used to happen. Savings were never on the mind of people in their 20s, fresh out of college and excited about finding work.
I noticed a change about 2 years ago when the auto-enrolment pension system kicked in.
Freelancers working PAYE were starting to notice that they were having pension money removed from their salary, and they didn’t understand why.
Pots and Pots
Auto-enrolment is something the happens by default if you work for a while with one employer. For freelancers this sometimes means they have many different pension pots with many different employers.
I met someone last month with 6 pension pots, because she moved around quite a bit through the year. Every employer used a different pension provider.
“How can I keep track of all these pension pots?” she asked, in between tearing her hair out.
Enter the Dashboard
The Department of Work and Pensions has always said it will introduce a “Pensions Dashboard” which would show all your pensions, including the state pension, in one single place online.
This week they published their plans following a public consultation on the subject. Amber Rudd even wrote something about it in the Express.
So what have we learned from the plans?
- Don’t hold your breath. They reckon 3-4 years is a likely timeframe before this all works as it should.
- There might be something a bit dashboard-y before that but it might be pretty basic.
- There will probably be lots of dashboards. Various sites might provide this service. You’ll have a preferred dashboard to which you’ll give permission to show your pension records. Or something like that.
Want to have a more information? Fill your boots:
The full DWP response document (all 50 pages of it)
Amber Rudd waffling a bit in the Express “Exclusive” I think the ‘within months’ headline is misleading, by the way.
Posted on 05 April 2019