The Pensions Scams Industry Group (PSIG) has urged the implementation of pension dashboards, noting significant data quality improvements since 2019 due to increased de-risking and buy-out exercises.
According to PSIG chair Margaret Snowdon OBE, the industry can support the initial rollout of dashboards with this robust data. She believes that rather than striving for “immediate perfection”, the emphasis should be on the overall benefits, such as transparency and scam prevention.
Snowdon says: “Data quality has significantly improved since 2019, largely driven by a significant increase in de-risking and buy-out exercises over the past five years. Schemes who suddenly found themselves fully funded, often unexpectedly, quickly addressed their data to seize the opportunity to buy out. Many other schemes, whilst perhaps not immediately positioned for a buyout, recognised the opportunity and benefits of improving their data quality.
“This work continues across many schemes, who are keen to put themselves in a strong position, having seen 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.”
“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.
Snowdon adds: “Dashboards are absolutely essential in providing individuals with a comprehensive view of their retirement savings, helping to prevent scams by ensuring transparency and accessibility of their information. 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. 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”.
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