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The pensions data trust issue
P ension suffers from a trust deficit. People don’t know what they’re getting or what they need to do to secure a comfortable amount of money to retire on. People in retirement don’t know if they’re entitled to more and worry about managing what they’ve got. There was good reason why chief economist at the Bank of England, Andy Haldawne, admitted that despite being “moderately financially literate”, he was “not able to make the remotest sense of pensions”. Pension success stories The three biggest success pensions stories of the past 20 years have happened because they haven’t required people to make decisions: ● the Pensions Protection Fund has provided a lifeboat for current and future pensioners whose sponsoring employers are no longer able to support a defined benefit promise ● the state pension has been reformed and is slowly becoming a much simpler single state pension ● automatic enrolment (AE) has enabled ten million new savers to sleep-walk to a better retirement. People don’t know what they’re getting or what they need to do to secure a comfortable amount of money to retire on What are the current issues? When it comes to helping people make decisions, problems have been identified but are yet to be resolved. The pensions dashboard This would be capable of finding lost pensions and displaying all our pension entitlements on a single screen. However, it’s currently three years late and it looks like it won’t arrive in its business-as-usual form until 2025.
There’s recently been a flurry of activity in the pensions sphere, so Henry Tapper, chief executive officer for AgeWage, explains the current issues surrounding trusting pensions data
The net pay anomaly Her Majesty’s Revenue and Customs
| Professional in Payroll, Pensions and Reward | June 2022 | Issue 81 50
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