Pension trustees should talk to their scheme administrators to understand what they are doing to review, rectify and preserve scheme data, Aptia has said, arguing that "2025 is crunch time for pension schemes to address their data".

In its whitepaper, Good data and why it matters, the group stressed that good data is "no longer optional", as legal and regulatory reasons for good data have mounted to the point where it is "unavoidable".

In particular, Aptia noted that The Pensions Regulator's (TPR) new General Code specified that schemes must be able to show accurate, up-to-date records, whilst pensions dashboards are also acting as a "hard deadline" for data improvements.

TPR also recently challenged the pensions industry to 'raise its game' on data, in order to improve outcomes and benefit the wider market through increased efficiencies, enhanced innovation and reduced regulatory burden.

However, Aptia argued that the industry shouldn't view good data as a regulatory burden, suggesting that the non-legal motivations for improving data are "even more compelling", providing key benefits in the age of digital pensions administration.

It stated: "Investments, calculations, transactions, liabilities and funding are all based on personal data, whether for defined benefit (DB) or defined contribution (DC) schemes. Data integrity is fundamental to effective pension scheme administration and governance.

"And a series of wider trends is combining to drive progress. Industry consolidation, demographic change, technological advancements, and more demanding consumer duties and expectations are just some of the factors that are reshaping pension schemes and the services they ideliver to members.

"And good data is essential if we are to meet the challenges these trends present."

Given this, it encourage pension scheme trustees to move from a reactive approach to a more proactive one, warning that a reactive approach misses the opportunity to support a scheme's longer-term strategy by making sure data is preserved and standards upheld.

Aptia stated: "We hope to see a change in attitude to pension scheme data - from something the industry thinks about when required to a critical part of pension scheme administration with the same level of scrutiny as areas such as scheme investment.

"It's up to trustees to take control of their scheme's data and, with their scheme administrators, seize the opportunity to revolutionise how savers interact with their pensions."

Whilst Aptia acknowledged that the pensions industry has some catching up to do with other parts of financial services, it argued that this can be done, with new technologies to review data accuracy widely available.

"Scheme administrators are investing in solutions to help members engage with their pensions digitally, easily, and effectively," Aptia stated. "The pace of innovation will only increase as technologies such as artificial intelligence develop."

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