Current data inaccuracies mean that nearly one fifth (18.54 per cent) of pension dashboards queries could result in a ‘possible match’ rather than a confirmed match, research from Heywood has revealed.

The group’s latest Pension Pulse Report found that while pensions dashboards could “revolutionise” how savers interact with their pensions, data quality remains a “major barrier” to a seamless experience for both schemes and members.

Indeed, the report identified a number of "significant" issues with critical data fields, including inaccuracies in surnames, revealing that 8.79 per cent of surnames are incorrect, often due to life events such as marriage or divorce.

In addition to this, 9.44 per cent of addresses are outdated or wrong, which Heywood warned could expose schemes to privacy risks and increased costs.

Heywood also found that in most schemes between 1-2 per cent of members dates of birth are incorrect, which represents "significant risks" for a scheme with tens or hundreds of thousands of members.

The report also found that 2.33 per cent of pensionable members are deceased but not recorded, which could be costing schemes over £250,000 per 10,000 members per month in incorrect payments.

However, Heywood found that schemes with higher common data scores see significantly greater member engagement, with more members accessing self-service portals and benefiting from digital communications.

Given this, Heywood highlighted the report as a “timely reminder” that accurate data is "fundamental" to regulatory compliance, de-risking transactions, and delivering a seamless member experience.

It also emphasised the need for “urgency” for schemes to improve data accuracy, not only to ensure successful dashboard integration but also to navigate the buoyant bulk purchase annuity (BPA) market and enhance member engagement.

"The pensions dashboards era is upon us, and these findings confirm what we’ve long suspected—data quality will be the single biggest factor in determining the success of the project," Heywood chief strategy officer, Chris Connelly, said.

“Schemes that take a proactive approach now through the advice given in the whitepaper, will not only be ready for dashboards but will also see wider operational and engagement benefits."

Heywood chief operations officer, Louise Donohue, added: "Data isn’t just a technical issue—it’s a fundamental part of delivering a positive experience for pension savers.

“Every incorrect name, outdated address, or missing record represents a potential frustration for members and an avoidable cost for schemes. Now is the time to act."

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