David Rich
Pensions dashboards are set to transform the UK pension landscape by connecting members with their pension information. It’s estimated that over 16 million people will use pensions dashboards—that’s nearly 25% of the entire UK population. That means that it’s essential that schemes are prepared for the expected wave of traffic when the members turn up.
The benefits pensions dashboards will bring are significant. We know from the success of our European counterparts’ dashboards programmes that as well as providing a secure view of pensions information, all in one place, they will help members to plan for retirement, contribute to more informed decision-making and connect members with ‘lost’ pension pots.
As connection dates approach at pace, we’re advancing to the start line in a new world of “Open Pensions”.
Getting to the start line successfully will hinge on accurate data
If your member data is 100% complete and accurate, the user journey should be seamless, and you shouldn’t have too much to worry about. A member will get a match and be able to view their pension information should they have one with you. Perfect.
In the same vein, if the information submitted does not tally with your records, the dashboard will return no match. This could be good but equally very bad if the member does have a pension with you but has failed to match due to your data being incorrect.
Then there is the uncertain territory of a possible match. When some of the information sounds like a match, but not all of it - you might have a pension for this member. This is a possible match, and this is where challenges may start for schemes and administration teams.
Resolving possible matches
Let’s think logically about the next step a member may take after receiving a possible match. There’s a strong possibility they’ll try to contact you to address the issue. Why can’t they find their pension information that they know they have with you? A handful of inbound queries might sound manageable, but what about an influx?
Possible matches will almost certainly create a significant administrative burden for schemes, leading to increased workloads and potentially delayed responses.
Have you thought about how you’re going to manage possible matches? It’s important to note that TPR requires scheme reporting on possible match levels and will investigate where those levels appear too high. You’ll need to have a plan.
The default dashboard response to a possible match, is likely to be giving the member contact details for them to get in touch.
There are creative solutions entering the market and ways to resolve possible matches through your pensions dashboards ISP, however. This involves keeping the member online and attempting to either gain a “full match” or confirm “no match”. The first step is to talk to your ISP provider, determine your matching rules, and test, test, test. For that testing to be effective, your data needs to be in good condition.
It’s a familiar message and one that’s been repeatedly echoed by The Pensions Regulator, PASA, and other industry bodies. As a solid foundation, member data needs to be assessed, and any gaps need to be filled, and the data must be as accurate as possible.
As the countdown to dashboards continues, it’s imperative that schemes give high priority to data cleansing and enrichment, prior to testing matching rules. Regularly updating and verifying member data will likely significantly reduce the occurrence of possible matches. It also smooths any work involved in updating records where they have been corrected. Ensure your records are as accurate and up to date as possible by conducting regular data audits and cleansing exercises.
Once it’s on, it’s always on
Once you’re connected to pensions dashboards, you’ll always be connected, so be mindful that as data decays over time, you need to be proactive with your cleansing efforts. A pensions dashboards data cleanse and enrichment project isn’t a one-time task. Not only do you have to get your data in good condition, it’s in your interests to keep it that way.
With the first wave of schemes due to connect to pensions dashboards by 30 April 2025, we are entering a crunch time for pension schemes that have yet to prioritise data accuracy – after all, matching and matching rules will not be as effective without a foundation of accurate data.
The introduction of pensions dashboards presents a significant opportunity to enhance the transparency and accessibility of pension information and deliver a positive member experience. However, once we arrive at the start line and the starting pistol is fired, we must be ready to address the challenges posed by possible matches and data accuracy to ensure a seamless process for all users.
This article was featured in the October issue of Pensions Aspects. The full version of the magazine can be found here.
