Scott Finnie, product architect at Hymans Robertson responds to the Government’s recommendations for the pensions dashboard:

“It’s paramount that consumers needs are kept at the heart of the pensions dashboard and it’s good to see that both the Government and the Work & Pensions Select Committee are united in this. People are crying out for simplicity when it comes to their pensions and the government needs to begin driving the necessary innovation in the industry to make this a reality.

“The Pensions Dashboard has the potential to catalyse new and creative ways for consumers to engage with their retirement savings.  Surely a valuable contribution given the general concerns in this area and the current disconnect between people and their retirement savings.

“However, it’s important to recognise that any dashboard is only as good as the underlying data available to it.  The government recognised this need when it launched open banking.  It can make a similarly valuable contribution to the Pensions Dashboard initiative by driving the specification and adoption of standardised, secure access to underlying pension data.  The work and pensions committee report clearly identifies three key objectives; giving people more choice to provide them with greater flexibility in later life, supporting consumers to make informed decisions about their retirement and enabling a more competitive, innovative retirement market.

“These are all worthwhile objectives, and secure and standardised access to underlying data is the engine that fuels all three.  We support a government-sponsored initiative to drive those standards and compliance with them.  Doing so would enable a government provided dashboard that consumers could trust as a reference point.  It would also catalyse innovation in consumer engagement in line with the stated objectives.”

Commenting on the Government’s recommendations for a review of automated advice, Karen Brolly, Head of Products, Life and Financial Services, Hymans Robertson, says:

“We strongly believe that digital tools are an ideal way to provide goal based approaches to financial planning.  They ensure that individuals can achieve a desired income throughout their retirement. Using robust actuarial modelling, these types of tools are able to clearly and objectively take into account of all key risks that should be considered, such as investment risks, the level of income being withdrawn and, critically, a realistic forecast of life expectancy.”