After years of discussion, pension dashboards are finally set to arrive, bringing pension league tables with them. The idea is simple: to help savers see at a glance how their workplace pension stacks up against the alternatives.
Why it matters
Politicians, providers and advisers have been talking about dashboards for a long time. Meanwhile, the FCA and The Pensions Regulator (TPR) are consulting on a new "Value for Money" framework for workplace pensions, with the first assessments due to be published from 2028.
Once everything is up and running, you'll be able to compare providers, including workplace schemes, on charges, investment returns and quality of service. Checking your own provider against the league table should make it much easier to judge whether your contributions are working hard enough for you.
A quick reminder of why pensions are worth it
At their core, pensions are tax-efficient savings pots. As a basic rate taxpayer, you pay in £80 and the government adds £20 in tax relief, bringing your contribution to £100. Higher rate taxpayers pay £60 (with £40 relief), and additional rate taxpayers pay £55 (with £45 relief), for the same £100 contribution.
Rachel Vahey, head of public policy at AJ Bell, welcomed the changes: "The Government has set out an ambitious programme of reforms that has the potential to transform workplace pensions, making it easier for people to compare pensions and switch to get a better deal."
She also stressed that clarity is key: "Pension savers deserve to know how well their pension scheme is performing. 'Traffic lights' league tables must be easy to understand and help people make more informed decisions about their retirement savings, rather than burying them in technical language or complex metrics."
What will the dashboard show?
Think of it as one home for all your pensions. Both state and private pensions will appear together, along with:-
Who your pension provider is
Their contact details
The current value of each pension
An estimate of the income it could provide when you reach retirement age
The first dashboard will be available through MoneyHelper, run by the Money and Pensions Service (MaPS), and is expected to open to the public in the 2027/28 financial year. In time, pension providers, banks and employers are expected to launch their own versions too.
Ms Vahey explained why this matters: "Greater transparency should empower people to take control of their retirement planning. Whether that means increasing contributions, reviewing their investment strategy or consolidating pension pots with a provider that better meets their needs for better information, service, price, or wider investment choice, giving them more opportunity to improve their long-term retirement outcomes."
What else is coming?
The Government has also published a roadmap for wider workplace pension reform. Highlights include:
DC "megafunds": the aim is to create 20 large defined contribution funds. (In a defined contribution pension, your eventual income depends on what you pay in and how those investments grow.)
Tackling small, forgotten pots: plans to consolidate dormant small pension pots.
Guided retirement options: from 2029, savers may be offered default retirement solutions designed by trustees and providers, such as a mix of annuity and drawdown, or a collective approach. These are optional. You can choose something different or transfer your pension elsewhere.
Value for Money assessments: larger workplace schemes will need to publish these from 2028, covering costs, investment performance and administrative service. Schemes will be rated on a traffic light scale, from red (poor value) to green (outperforming). Those at the bottom will be expected to improve or close.
Scale requirements: all defined contribution multi-employer schemes used for automatic enrolment will need "assets of at least £25 billion in a single main default arrangement", according to Ms Vahey.t.
That last change means some savers will be moved into different schemes during a transition period. Ms Vahey added: "Combined with pensions dashboards, these reforms have the potential to create a new generation of more engaged savers. For the first time, people will be able to see what pension savings they have built up across different providers, alongside clearer information about how well those pensions are delivering for them."That last change means some savers will be moved into different schemes during a transition period. Ms Vahey added: "Combined with pensions dashboards, these reforms have the potential to create a new generation of more engaged savers. For the first time, people will be able to see what pension savings they have built up across different providers, alongside clearer information about how well those pensions are delivering for them."
Get in touch
Wondering how the dashboard and these wider changes could affect you or your business? Please get in touch. We'd be happy to talk you through what it all means in plain English.
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