The pensions industry must place far greater emphasis on engagement and communication if it is to deliver effective administration in the future, according to insights from a recent industry roundtable.

The discussion, hosted as part of the Pensions Leaders series by Muse Advisory, brought together professional trustees, heads of pensions and administration providers to explore what “utopian” pensions administration could look like in the 2030s.

Participants agreed that the overarching goal for the future should be to deliver an “outstanding member experience”, with engagement and communication identified as the most critical areas for improvement.

However, attendees suggested the industry is not yet sufficiently mature in its understanding of members’ needs, with one participant noting that schemes still struggle to define what “good” looks like from a member perspective.

The introduction of pensions dashboards is expected to drive a short-term increase in engagement, particularly among previously disengaged savers.

But the group warned that sustaining meaningful engagement beyond this initial spike would be crucial.

There was broad agreement that ongoing, proactive engagement remains essential, particularly given low levels of financial literacy among the general population.

Participants emphasised the need to focus not only on engaged members but also on harder-to-reach groups, suggesting that improved engagement could help build trust across the system.

The roundtable also highlighted potential unintended consequences of dashboards, including the risk of prompting more defined benefit (DB) to defined contribution (DC) transfers as members gain visibility of transfer values.

Meanwhile, communication challenges were a dominant theme throughout the discussion, with attendees describing widespread confusion and disengagement among members.

Complex documentation, such as lengthy retirement packs, was cited as a key barrier, with some savers reportedly delaying or avoiding decisions due to the difficulty of navigating the process.

Participants argued that the industry must simplify its communications and adopt clearer, more consistent language.

Calls were also made for greater cross-industry collaboration to address these issues, including the potential development of a shared approach to plain English communications.

The discussion further highlighted the importance of recognising differing member needs, noting that a “one-size-fits-all” approach is no longer appropriate.

The evolving nature of pensions administration was also explored, with attendees warning that the shift towards digital and self-service models risks weakening the human connection between schemes and members.

While artificial intelligence (AI) was recognised as a valuable tool for improving efficiency and managing capacity pressures, the group stressed that it should complement rather than replace human expertise.

In particular, participants highlighted the importance of ensuring that complex queries are directed to appropriately skilled professionals.

Concerns were also raised about the growing influence of unregulated financial content on social media platforms, with participants warning that schemes must position themselves as trusted sources of information to counter misinformation.

The role of government policy was another area of debate, with attendees noting that successive regulatory changes have added complexity to administration.

With this in mind, data quality was identified as an increasingly strategic priority, particularly in the context of buy-in and buyout activity.

The group agreed that data should be treated as a core asset, embedded within scheme strategy rather than addressed through one-off projects.

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