This is the fourth in a series of member-focused articles as we look at the trends that are bringing in a new era of member engagement. In this article, I want to look at why good data is the key to effective pensions dashboards.
The pensions industry has for a long time suffered from a disengaged membership and high administrative workload. There is a large section of society slumbering towards, at best a retirement provision lower than expected and at worse, retirement poverty. The post-DB/pre-auto enrolment generation is starting to wake up to what lies ahead and with the soon-to-be-live Pensions Dashboard, are likely to become more aware and engaged than has historically been the case.
The industry faces increasing expectations from members, in a larger volume than ever before and if the challenges that present can be overcome, there is a brighter future ahead for the industry and the members.
In order to overcome the challenges, it is vital to embrace digital engagement, combat fraud, adopt an automated administrative platform where manual administration is the exception and communicate in a simple and effective manner. Reducing costs while delivering increased service is achievable; technology is the enabler.
However, there is an elephant in the room, which can support or curtail every single positive step forward: data is key to everything. More precisely, good data.
It will have been hard to have missed the messaging from regulators and industry bodies over the last year. That messaging is "clean your data". Be it for rectification purposes, communications or the Pensions Dashboards, having complete and accurate data is the bedrock that supports everything.
The nature of pensions means there are substantial amounts of old data, much of which is incorrect or missing and difficult to manage. People have a habit of moving and not telling their scheme - emails and phone numbers change. There are effective solutions available for all of these issues and it is well within a scheme’s ability to meet the duties around achieving and maintaining good data quality.
Do not assume achieving and maintaining good data quality is expensive and hard. Done well, it can be a positive process delivering good outcomes for all concerned. Pensions are so important. Let us give members what they deserve.
Heywood Analytics provide a range of efficient and reliable data analysis, cleaning and automation services. We put you in control of your information and help you focus on what you do best - delivering positive member experiences. To learn more about Heywood Analytics, please contact us.
David Rich is Heywood’s Head of Data Services. He has contributed to many data and regulatory initiatives, including the DWP Single-tier State Pension, Automatic Enrolment and the Dormant Assets Commission.
David also works with PASA on various panels, including the Dashboard Working Group.