Three-quarters (75 per cent) of pension schemes, both defined benefit (DB) and defined contribution (DC), believe they will be ready to join the pensions dashboard initiative given two years to prepare and assuming various challenges can be overcome.

The survey by the Pensions and Lifetime Savings Association (PLSA) also found that 75 per cent of schemes stated that they would be able to make dashboard data available within 24 months, based on the government policy that schemes will have to supply the data available on annual benefits statements, or on request.

Whilst the PLSA argued that this was “encouraging”, it clarified that the on-boarding timeline should not be designed to suit the capacity of the simplest schemes, but rather should be flexible enough to cater for those schemes that need more time to prepare.

For instance, it explained that less than half (48 per cent) of DB schemes currently provide information on the accrued rights of deferred members as part of the annual benefit statement.

Considering this, it explained that a requirement to provide them for the dashboard would take “some time” to address.

The survey also revealed that 75 per cent of schemes already have a defined process for matching savers to their pension entitlements.

However, the PLSA clarified that several challenges associated with accurate matching, such as incorrect key identifiers, can still hinder the process.

As part of its response to the ongoing consultation on dashboard data, the PLSA emphasised the importance of showing an estimated retirement income for individuals’ pension entitlements on the initial dashboard.

It noted that this would allow savers to view data about their entitlements that is "consistent and comparable".

The association also highlighted information on accrued entitlements, alongside any special features, such as spouse’s pension or guaranteed annuity rates, as "essential" in helping members fully understand their retirement income.

PLSA policy and research director and Pensions Dashboard Prototype Project Steering Group member, Nigel Peaple, said that there are still concerns that dashboards may launch with too few participating schemes, in turn providing savers with an incomplete picture of their pension entitlements.

He stressed that initial dashboards should show, at launch, "all or very nearly all" the benefits members have accrued or the project, warning that the project may otherwise "fall at the starter’s pistol".

He added: “We have long been a strong supporter of the pensions dashboard and believe it is key to helping improve saver engagement with their pensions and helping them plan their retirement income.

“Our survey shows pension schemes are already well-placed to become an active part of future pensions dashboards.

“The progress schemes have made in addressing the data challenges they face is highly encouraging, particularly given current circumstances.

“That said, we should not pretend that real challenges do not remain and we need to give the industry time to ensure data is complete and accurate."

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