The importance of ensuring pension scheme data is dashboard-ready has been reiterated by the Pensions Dashboards Programme (PDP) and The Pensions Regulator (TPR), with those failing to act warned that they are risking enforcement action. 

In its latest update, the PDP argued that getting member data in good order is crucial to the success of pensions dashboards, emphasising that "dashboards depend on member and pension data being complete, accurate and up to date, across millions of pension provider and scheme records".

The PDP also highlighted the benefits of improving data quality early, explaining that, when member data is complete and up to date, the number of definite matches is likely to increase, and the number of possible matches is likely to decrease.

This, in turn, reduces the administrative load and improves the user experience as fewer people would need to follow up with their providers or schemes to resolve their cases. 

In contrast, incomplete or out-of-date data could reduce the effectiveness of matching, undermining confidence in pensions dashboards and affecting future take-up.

While the PDP acknowledged that data preparation for pensions dashboards "undoubtedly requires a significant investment of time and resources", it argued that the benefits of investing in data quality go beyond meeting regulatory requirements. 

"As we move closer to the launch of pensions dashboards, pension providers and schemes who embrace this opportunity to improve their member data will find themselves better positioned to thrive in an increasingly digital and member-focused landscape," the PDP stated. 

This was echoed by TPR, which stressed that this is a "transformation long overdue".

"Schemes that have embraced data readiness and recognise the vital role of administration are unlocking broader benefits," TPR stated. 

"Clean, structured, and accessible data transforms operations. It means a member query can be answered with a click, not a paper chase. It means trustees can run real-time analytics, not rely on assumptions.

"And when dashboards go live, data-ready schemes will be equipped to engage meaningfully with savers – many of whom will be interacting with their pensions for the very first time."

TPR also warned that the consequences of not investing in data are "stark", explaining that, in the long term, poor-quality data will drive up costs, increase the risk of errors, and fall short of meeting savers’ growing expectations for digital services.

"As people become accustomed to fast, intuitive digital experiences in other areas of their life, pension schemes must keep pace – or risk being left behind," it added. 

TPR also warned that time spent wrestling with data will drain resources from strategic priorities, such as enhancing member services or embracing new technology.

This builds on TPR's recent data quality market oversight report, which found that many trustees were not actively involved in data management, often deferring to administrators without sufficient scrutiny. 

TPR has since updated its guidance to make it clear that data is a governance issue – because it's a member issue.

"Trustees are accountable," it stated. "As are third parties who may be contracted to help schemes meet their dashboard duties."

TPR also warned that schemes that fail to act are risking enforcement action, emphasising that "dashboards will only work if the right data is there to make pensions visible, meaningful and trusted".

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