Cartwright stresses early preparation for the Pensions Dashboard to avoid “dead money” on compliance costs, especially for endgame schemes, while helping trustees manage costs, protect benefits, and align with strategies.
According to Cartwright, there are substantial costs associated with connecting to the pensions dashboard, and smaller schemes are probably going to be most affected. Small and medium-sized schemes have establishment expenses that range from £30,000 to £100,000, as well as continuing maintenance costs that change according to the size of the membership.
All UK pension schemes are required by law to link to the dashboard. Large schemes will start implementation in April 2025, and by October 31, 2026, smaller schemes will be added gradually.
Cartwright cautions that the pensions dashboard expenses might not be necessary for schemes nearing their endgame. It urges trustees to look into options like consolidation or transfer, with well-funded smaller schemes capable of completing a buy-in and winding up in two years, to minimise expenses.
Cartwright calls for quick action, pointing out that delaying action could result in missed opportunities to reduce costs and get the best results.
Cartwright director of administration Julie Yates says: “For many schemes, the costs associated with the Pensions Dashboard risk becoming ‘dead money.’ Trustees need to question whether these expenses truly serve their members’ best interests, particularly for schemes nearing their endgame, where compliance is only required for a limited period. 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. 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.
“The reality is 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. Those who delay risk missing the chance to avoid unnecessary costs and deliver the best outcomes for their members.”
