Life events such as redundancy, job moves or retirement will drive engagement with pension dashboards, according to research from WTW.
Its survey of trustees and pension scheme managers found that almost half (43 per cent) expect these events to prompt employees to review pensions on the new dashboard infrastructure, with 40 per cent saying they expected usage to be prompted by scheme communications.
Significantly, the survey found that only just over one in 10 (13 per cent) of pension professionals are anticipating regular proactive use of dashboards from members.
However, despite this it said that the launch of the pension dashboard is likely to mean schemes face a surge of enquiries which may create operational challenges. Almost 40 per cent of respondents said managing increased member enquiries was the leading post-launch challenge.
WTW says this reflects expectations that greater visibility of pension data will prompt a wave of questions from members seeking clarity on their benefits.
Data quality also emerged as a key risk. More than a third (36 per cent) of respondents identified accuracy as a primary concern, with a clear link between poor data and potential erosion of member trust.
The findings underline the reputational stakes for schemes as dashboards bring legacy data issues into sharper focus.
At the same time, there is broad optimism about the overall impact of dashboards. More than three quarters (76 per cent) of those polled expect at least a moderate increase in engagement following launch. However, most believe this uplift will be concentrated among members who are already engaged, unless schemes invest in more proactive support.
WTW says these findings suggest that dashboards, on their own, may not drive sustained behavioural change. Instead, they reinforce the need for communication strategies built around specific life stages, when members are most likely to act. It adds that the polling shows that dashboards will be seen as a catalyst for improved engagement, but not a complete solution, with success depending on how effectively schemes manage communications, administration and data readiness.
WTW senior director, pensions outsourcing Geraldine Brasset says: “It’s becoming clear that dashboards will be most powerful at moments that matter to members. Schemes should not assume that access alone will drive engagement. Targeted communications, aligned to life events, will be critical if dashboards are to translate into better decisions and outcomes.”
She adds: “Dashboards represent a significant step forward in how members access their pension information. But the real test will be what happens next, how schemes respond to increased demand, how they maintain data quality, and how they support members in turning insight into action.”
