The government has published statutory guidance setting out the staged timetable by which it expects pension schemes to connect to the Pensions Dashboards. Although the deadline for connecting is 31 October 2026, trustees and pension scheme providers are expected to aim to connect by the timetable outlined in the guidance rather than waiting until the strict legal deadline. The timetable is based on scheme size and type and will start with the largest schemes, which will be encouraged to connect by 30 April 2025.
Jonathan Watts-Lay, Director, WEALTH at work, comments;
“The upcoming Pensions Dashboards will no doubt be a useful tool for employees, especially for those who have worked several jobs and have pensions from various employers. With the launch of the Pensions Dashboards approaching there is potential to develop this into ‘Open Finance’ which is an extension of Open Banking. This could give people a holistic view of all their finances to consider all savings and investments, which would be particularly useful when planning for retirement.”
He adds; “Over the last few years, Open Banking regulations have meant that the UK’s largest banks must allow a person’s financial data to be shared with authorised providers, granting read-only access to finances such as savings, loans, or payments. There are many benefits that come with Open Banking, for example by linking a bank account to a budgeting app, people can get real time insights into their spending habits. Through this, spending can be categorised and help people identify areas of overspending and where savings can be made, which is useful for someone who may be trying to manage a budget and tackle debt. It is also a valuable tool for those with certain financial goals in mind. For example, automated savings can be set up for those who are saving up for something such as a wedding or holiday, where they can create a goal and monitor their progress.”
Watts-Lay comments; “Open Finance is the next step and would provide individuals with access to a broader range of financial products in one place such as ISAs, current accounts, mortgages and pensions. Having one view of all pensions and savings in one place is especially useful for those preparing for retirement, as this will give people a clearer view of their finances and allow them to plan more efficiently.”He adds; “All things considered, Open Finance could be a great opportunity to help individuals to work out what their financial situation really is and allow them to take action. But of course, people would need to understand the benefits and integrating digital tools, such as animations or webcasts within the app could help them build their knowledge of the financial products and services available. Many leading employers also help their staff better understand how to manage their finances and prepare for their future by providing financial education and guidance via financial coaches.”If you would like to speak to Jonathan please do not hesitate to get in touch.
