Data security has become a leading concern for pension schemes and administrators ahead of the pensions dashboard launch, according to a new white paper from Bravura Solutions Limited.
Participants were asked to rank their top three concerns out of a choice of seven options. Both third party administrators and schemes ranked security of data as their highest concern.
The research, conducted by KGC Associates, in partnership with Bravura, explores how in-house administered pension schemes and third party administrators are planning to connect with the pensions dashboard by looking at whether they plan to build their own or buy an integration solution and whether they will be ready for first staging cohort in April next year.
All of those surveyed said they expect to be able to connect to the pensions dashboard ecosystem within the deadlines, however most admitted it would come at a cost with other projects slipping down the priority list.
To achieve the staging deadline, three fifths (60%) of third party administrators and nearly 80% of schemes plan to buy an integrated service provider solution.
Jonathan Hawkins, principle consultant and pensions specialist at Bravura, said: “Following years of false starts and endless debate, Pensions Dashboards Programme connection dates are rapidly approaching, but our research shows pension schemes are concerned about the impact this ambitious project has on their day-to-day business. Dashboards present an enormous challenge to the retirement savings sector and understandably, pension schemes, third party administrators and pensions providers may not feel confident to build and maintain their own connections to comply and make Dashboards a success. Our research shows that many plan to buy-in a trusted ISP.”
Lesley Carline, director at KGC associates, added: “This is an incredibly important topic for the financial services sector as the next step in giving individuals greater freedom, visibility and control over their pensions. However, the Pensions Dashboards Programme has been a long time coming because it is not a simple undertaking. Finding and presenting pensions data from multiple sources including schemes, platforms and providers in one place is no mean feat.
“Today’s white paper shows pension scheme administrators still have a lot to get to grips with by next spring. To live up to the expectations of pension savers and the government, pension schemes and providers will need to make sure their data, systems and processes are in order well ahead of the connection deadline.”
