The Pensions Scams Industry Group (PSIG) has urged the pensions industry to take action to make pensions dashboards a reality, arguing that the industry is prepared enough to get started with dashboards following recent data quality improvements.

PSIG chair, Margaret Snowdon, argued that data quality has “significantly” improved since 2019, largely driven by a significant increase in de-risking and buyout exercises over the past five years.

“Schemes who suddenly found themselves fully funded, often unexpectedly, quickly addressed their data to seize the opportunity to buyout,” she explained.

“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.”

And these data quality improvements, according to Snowdon, mean that the industry has 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”.

Indeed, Snowdon also emphasised the need to focus on the bigger picture, rather than immediate perfection, in getting pensions dashboards launched.

"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," she acknowledged.

“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."

Snowdown also highlighted the potential role of dashboards in tackling pension scams, arguing that 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," she continued.

“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”.

A spokesperson for the Pensions Dashboards Programme added: “Pensions dashboards will be a vital tool to help people plan for their retirement.

"The fresh and positive collaborative spirit shown by all will ensure the dashboards ecosystem is safe, secure, and works for both the pensions industry and individuals searching for their pensions.

“Connecting pension providers and schemes to the dashboards ecosystem is a complex undertaking. Industry and the public will get at least six months’ notice that dashboards are coming.”

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