Pensions Dashboards are set to fuel a boom in pensions activity
More than one in three pension schemes believe the arrival of the Pensions Dashboards - due next year - will spur a 30%-50% increase in member activity.
A survey, by pension consultancy Willis Towers Watson (WTW), found that the majority of pension schemes believe the increased activity will last up to two years or more.
Overall, most UK pension schemes expect a significant boost in member activity once members have access to the Pensions Dashboards, according to poll of trustees and pensions managers by WTW.
WTW says the Government’s MoneyHelper Pensions Dashboard will be the first to launch to the public and all UK pension schemes covered by the Pensions Dashboard regulations must be fully connected by 31 October 2026.
WTW surveyed 58 UK trustees and pension scheme managers, via webinar and in-person conference polling, between 16 September and 1 October.
Over a third (38%) of pension schemes are anticipating a 10%-30% increase in activity, while a further 38% predict an increase of 30%-50%.
Nearly half (46%) of respondents forecast the increased activity to continue for up to a year before calming down. More than a quarter (28%) think the boom could last for two years and a further quarter (24%) expect levels of increased member activity to become the new norm, lasting up to five years or beyond.
In terms of communication, the polling data indicates that email is likely to be the most used, with 41% of respondents expecting an increase in email traffic.
Telephone and web-chat communications are also expected to be popular, with 31% of respondents anticipating a rise in these areas and over a quarter (28%) expecting their scheme portal to be the most heavily used form of member interaction.
Geraldine Brassett, senior consultant in WTW's outsourcing business, said: "Pension schemes need to be prepared for a significant shift in saver behaviour following the launch of Pensions Dashboards. The anticipated increase in activity will require schemes to have robust communication strategies in place to handle the expected surge in enquiries.
"The duration of increased activity is a critical factor for pension schemes to consider. With many schemes expecting the heightened activity to last two years and beyond, schemes need to plan for the long-term implications of Pensions Dashboards on their operations and resources and be ready for a potentially prolonged period of increased engagement from savers."
Previous polling by WTW earlier this year showed that an increased volume of enquiries for administrators and pension providers was named as the biggest challenge anticipated by pension schemes, once members are able to access a Dashboard.
Ms Brassett said: “As pension schemes prepare for the launch of Pensions Dashboards, it is clear that the impact will be significant, but the Dashboard programme also provides a unique opportunity to engage many more members who may not be fully familiar with their retirement savings.”
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