Recent defined benefit (DB) pension funding improvements should not mask the fact that schemes are facing challenges, including uncertainties caused by recent market volatility and concerns over data ahead of the rollout of pension dashboards, PwC has said.

PwC's Buyout Index showed that the DB surplus for the UK's DB pension schemes increased slightly to £95bn in March, whilst its Low Reliance Index recorded a "significant" surplus of £165bn.

However, the group warned that these continued surpluses shouldn’t mask the fact that schemes are facing a number of challenges.

In particular, PwC UK head of pensions, Gareth Henty, said that while the first quarter of 2025 was steady for UK pension schemes’ funding positions, the wide-ranging tariff programme introduced by the US government on 2 April has added another layer of uncertainty, with some dramatic movements in equity and bond markets observed since.

“This increased volatility certainly isn’t the only thing trustees have to keep an eye on," he added.

"More and more focus is on the task of preparing for pension dashboards - especially with the first few providers having recently completed testing and connected to the architecture."

Data is a particular focus, as Henty said that one of the primary issues trustees face is ensuring that scheme data is accurate, complete and accessible, with many schemes, especially legacy ones, grappling with outdated systems and inconsistent data.

“At our latest Virtual Ideas Exchange event, two thirds of respondents indicated that their scheme data needed some work - ranging from simple improvements to significant concerns to be resolved," he said.

"Working out the best way to do this, especially given the capacity constraints in the administration market, is quickly climbing to the top of trustee agendas.”

Given this, PwC head of pensions data, Kristy Cotton, stressed that, as the deadline for dashboard implementation looms, "proactive planning is vital".

"It’s important for trustees to understand early on how their schemes fit into the administrator’s pipeline of connections, and what plans, processes and controls are being put in place," she said.

"In our experience, no news doesn’t tend to be good news on this front. Many schemes will also need to make sure that actions to identify and rectify data gaps are being factored into the timelines."

She continued: “Having a clear plan of action is especially critical for schemes who are working towards buyout and plan to complete this before the 31 October 2026 deadline.

"We’re increasingly seeing trustees outsource data cleansing work to help them move to buyout within this timeframe - administrator resource constraints shouldn’t define the scheme’s plan and goals.

“The significance of the operational activities required for schemes to connect to dashboards should not be underestimated. That’s why developing a comprehensive strategy that everyone has agreed on upfront is key.

"This will help ensure schemes are not only compliant with dashboards, but also positioned to deliver better outcomes for members through accurate, accessible pensions information.”

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