Hargreaves Lansdown’s McPhail says DPP’s pension dashboard won’t work in Fintech age
Tom McPhail, head of retirement policy at Hargreaves Lansdown, laid down a challenge to the government’s flagship ‘pensions dashboard’ policy, saying the database may struggle to integrate with disruptive new Fintech providers.
Speaking at the Boring Money Fin-k-Tank conference, he said: “My challenge to the DWP is that having committed to build a dashboard, how do you work with the rest of the industry?” This includes established platforms such as Hargreaves Lansdown and also the new breeds of Fintech group.
The Pensions Dashboard is an initiative from the Department for Work & Pensions designed to draw together an individual’s pension pots on one centralised database. McPhail says the dashboard will require legislation to ensure 100% coverage. If this coverage doesn’t exist, the data will lack integrity.
Instead, McPhail called for ‘open pensions’, which would rest in the hands of individuals and could be moved from company to company. This, he argues, would be far more useful for retirees than being forced to take another pension every time they move jobs.
He added: “There’s a real policy problem because auto-enrolment keeps giving people more and more pension pots. That needs fixing. When you’ve got a pension you’re happy with, you should be allowed to keep it.”
“Retirement is not just about pensions, but also about ISAs, property and other assets. Property is biggest single store of wealth outside of pensions. More importantly, people want control of their wealth in their own hands.”
Notes to the Editors:
Fin-k Tank is a new one-day conference from Boringmoney.co.uk, designed to show the financial industry how technology can improve the world of savings and investments.
With particular focus on open banking, Blockchain, hybrid advice and Artificial Intelligence, Fin-k Tank combines talks, interviews and live demos to highlight best practices, developments and opportunities. Financial services largely lag behind other industries in consumer grade user experience and communication - Fin-K Tank aims to address this issue.
This is Boring Money’s second Fin-k Tank fintech event, after a successful half-day launch in December 2017. The event is supported by Altus Consulting and Aviva.
For more information please contact:
Cara Whitehouse or Richard Bradley