On the go: Savers may only be able to locate six out of ten pension pots when pension dashboards are launched unless the industry starts to improve data quality, PensionBee has warned.
Pensions dashboards were intended to be a digital interface that allows savers to see all their lifetime pension savings in one place, helping them make better decisions about their retirement planning.
But analysis of current pension data quality by PensionBee, published on Monday, hints that early users of dashboards will be disappointed, as not all of their pension pots will be available due to data not being ready.
The pension consolidator’s analysis was based on 6,500 instances where a provider was contacted in search of a client’s pension between July and November 2019.
It looked at the number of pots that could be matched on first try, those that could be matched based on partial identification, and those that could not be matched despite the belief that a pension pot exists.
The information used to identify a client's pension pot included name, date of birth, national insurance number and address.
According to the analysis, 61 per cent of pots were found first time, with 13 per cent of partially found with some elements of data missing.
Twenty-six per cent of pots were not able to be located using name, date of birth, national insurance number and address data.
Newer master trust providers were better at locating pots with 79 per cent found on the first go, but only 52 per cent of pensions were matched on the first attempt at older contract-based providers.
When dashboards are introduced, the government plans to use digital ID to identify a consumer’s pension.
However, this is not likely to be available in time for the launch of the dashboard in the next few years. Therefore the dashboard will likely provide data to consumers based on matching, which use name, date of birth, NI number and address information.
Clare Reilly, head of corporate development at PensionBee, said: “By the time it launches, savers will have waited more than 20 years for a dashboard so it needs to be fit for purpose from day one.
“This data should be a huge wake up call to the pensions industry. Those with legacy books of business, spread across systems and geographical locations around the country need to finally get their houses in order. The reputation and future of pensions depend on it. "
In January, pensions minister Guy Opperman urged providers to start preparing their data now to ensure it is secure, accurate, and user-friendly before dashboards are launched.
