The pensions industry is “prepared enough” to take the first step on implementing pension dashboards, according to the Pensions Scams Industry Group (PSIG).
PSIG chair Margaret Snowdon said that significant improvements in data quality since 2019 mean the industry is ready to take action on dashboards now.
Data improvements across the industry have largely been driven by a significant increase in de-risking and buy-out exercises over the past five years, she explained.
Data improvements
“Schemes which suddenly found themselves fully funded, often unexpectedly, quickly addressed their data to seize the opportunity to buyout.
“Many other schemes, while perhaps not immediately positioned for a buyout, recognised the opportunity and benefits of improving their data quality.”
She said that data improvement work is continuing across many schemes, which are keen to put themselves in a strong position after seeing the positive impact it can have.
“What this means is, we have reached a point where the data is robust enough to support the implementation of pension dashboards at least to a point to get us started,” Snowdon said.
Bigger picture focus
“We all need to be focused on the bigger picture, rather than immediate perfection.
“We understand the potential pushback on launching dashboards before they are fully ready and of course it is important to ensure that when members do start logging into the dashboard, the experience is smooth and accurate.
“However, a member will not seek perfection to be engaged, with the proven improved data quality we are well equipped to take this important first step. It’s a fine balance between readiness and action.”
Shine a light on scams
Snowdon said dashboards are “absolutely essential” in providing individuals with a comprehensive view of their retirement savings. This, in turn, helps to prevent pension scams by ensuring transparency and information access.
“Scams thrive in the shadows of confusion and misinformation, and by making pension details accessible and clear, along with the preventative security measure’s dashboards will have in place, we can significantly reduce the risk of fraudulent activity,” she said.
“Our industry has the talent, expertise and technology to make dashboards a reality, we must now overcome the inertia and focus on the potential benefits rather than the risks.”
