Pension schemes should move away from high-risk ‘big bang’ system replacements and instead embrace incremental, component-based digital transformation, the Pensions Administration Standards Association (PASA) has said in the final part of its Digital Admin Guidance series.

In the paper, PASA argued that the question for schemes was “no longer whether to digitise, but how to do so intelligently”, with delivery embedded in day-to-day operations through iterative improvement and structured change management.

The guidance, which focused on helping schemes translate digital strategy into practical delivery and place saver engagement at the centre of administration design, stressed that technology decisions should be tested against a single principle: how they improve members’ experience.

According to PASA, digital administration should not be driven solely by regulatory pressure or short-term efficiency gains.

Instead, it encouraged schemes to build scalable, secure and integrated infrastructures capable of supporting evolving saver expectations, including real-time processing, unified data models and seamless system integration.

With this in mind, the paper set out three pillars underpinning saver-centricity by design: immediate responsiveness, unified experience, and adaptive intelligence.

Savers increasingly expected instant confirmation of transactions and intuitive, omni-channel journeys, it noted, requiring a shift away from traditional batch processing and monolithic systems.

Meanwhile, schemes were advised to tailor their approach according to their level of digital maturity - categorised as ‘new entrant’, ‘mature’ or ‘super mature’.

For example, new entrant schemes should prioritise simple tools, clear communications and trust-building onboarding experiences.

Mature schemes were encouraged to deepen engagement through personalisation, behavioural nudges, and segmentation.

Super-mature schemes, meanwhile, were urged to optimise journeys through advanced analytics, end-to-end self-service, and the thoughtful use of AI to enhance, rather than replace, human judgement.

Alongside technical design, the guidance placed significant emphasis on change management, outlining a four-phase framework: getting ready; building awareness and buy-in; building knowledge and skills; and making change stick.

Cultural alignment, leadership engagement, and continuous measurement were presented as critical to ensuring that transformation efforts deliver intended benefits.

PASA chair, David Fairs, argued that digital transformation was now a "strategic priority" across pensions administration, and that schemes were increasingly focused on how technology could improve member experience and operational efficiency.

“PASA’s Digital Admin Guidance series is designed to support practical progress, enabling better conversations and better outcomes for savers," he said.

PASA Digital Admin Working Group chair and Procentia CEO, Liam McGrath, added that saver-centricity should underpin every digital transformation decision.

“This final part of the guidance helps schemes move from planning into delivery, with practical steps on engagement, implementation and change management which can be applied at every stage of digital maturity,” he stated.

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