Pension passport pilot launched as firm teams up with Treasury

The Treasury has teamed up with a pensions firm to start a pilot scheme for a pension passport. The idea has been floated over the last year and has gained some backing from senior industry figures.Former Pensions Minister Steve Webb signalled support for the idea while in Government. This week LV= and the Treasury launched a trial version of the proposal. See image above for example.{desktop}{/desktop}{mobile}{/mobile}The pilot aims to see whether the passport will better engage pension savers than the wake up packs that those approaching retirement currently receive from providers.The pension passport is currently being sent to customers approaching retirement in lieu of the wake up packs.Phil Brown, head of retirement proposition and change at LV, said: “We have teamed up with the Treasury to create and trial a pension passport to boost consumer engagement with the retirement income market.“People spend a lifetime building up their pension funds and we want to encourage them to make the most of their pots.“The pension passport is a simple document outlining how much an individual has in their pension pot, in what type of scheme and any special terms such as guaranteed annuity rates their pension attracts.“The pension changes means that those pension savers now have greater choice as to how they take an income from their pots.”LV= has been working with the Cabinet Office’s Behavioural Insight Team on the project.The company has started sending the passports to those pension savers approaching retirement in place of the current wake up packs.Andrew Tully, pensions technical director at MGM Advantage, has been a supporter of the idea and has previously said: "If people continue to roll over into their current provider's solution the market will still not be working properly."To be effective the guidance provider needs details about the individual's circumstances: their pension savings, their family, their health, whether they have any debt."We think the best way to achieve this is a single-page 'pensions passport' sent to consumers approaching retirement that can then be passed on to the guidance provider.

Pension passport pilot launched as firm teams up with Treasury

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