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03 December 2018

Pension dashboard proposals raise alarm bells for self-employed

Responding to the launch of the Department for Work & Pensions (DWP)’s proposals for “industry-led” pensions dashboards, Federation of Small Businesses (FSB) National Chairman Mike Cherry said:

“The DWP’s decision to hand responsibility for delivering pensions dashboards to industry will have alarm bells ringing among the self-employed.

“Fewer than one in three sole traders currently save into a private pension. The danger is – without government pulling out all the stops to deliver these dashboards – the incredibly drawn out process of making them a reality will yield little impact. We need to see the new DWP Secretary Amber Rudd inject some leadership and drive into this long-delayed initiative.

“Pensions dashboards should link to users’ state pension data from day one so they know exactly where they stand. We can’t continue with a situation where some sole traders think the state pension will be enough to get by on in retirement.

“The rollout of pensions dashboards should be coupled with proactive saving prompts from the Government. Self-assessment tax return reminders could, for example, lay the foundations for nudges which encourage small business owners to save more for the future.”