Pension scheme trustees should act now ahead of the pensions dashboards staging dates to avoid unnecessary costs, protect member benefits, and ensure a smooth transition to their endgame strategy, Cartwright has said.

All UK pension schemes within the scope of regulations will be required to connect to pensions dashboards, with the first staging dates set for April 2025 for larger schemes, before filtering down to small schemes.

However, Cartwright acknowledged that connecting to the dashboard brings significant costs, particularly for smaller schemes, who are likely to be most affected.

Indeed, according to Cartwright, initial setup fees for small and medium schemes range from anything between £30,000 to £100,000, in addition to ongoing maintenance fees based on membership numbers.

Given this, Cartwright director of administration, Julie Yates, encouraged trustees to question whether these expenses truly serve their members’ best interests, particularly for schemes nearing their endgame, warning that for many, the costs associated with the pensions dashboard risk becoming ‘dead money.’

"Instead of incurring significant fees to comply with dashboard requirements that may only apply for a short time, schemes should take a step back and consider whether alternative options—such as transferring or consolidating—might deliver better value and outcomes," she continued.

"For well-funded smaller schemes, completing a buy-in and winding up within two years is entirely achievable, bypassing unnecessary dashboard costs while fully protecting members’ benefits."

However, Yates stressed that schemes "must act now" to explore their options and secure a more cost-effective endgame.

"The right expertise can help trustees navigate these challenges, but the window to act is closing," she added.

"Those who delay risk missing the chance to avoid unnecessary costs and deliver the best outcomes for their members.”

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