According to publicly sourced data, pension schemes can expect the details they have for members to change for 16.5% each year, or 17.5% if you factor in errors at input.
That’s more than 1 in 6 member records that are likely to contain outdated or inaccurate data every year, which then compounds over time, creating more severe data challenges further down the line.
In an ideal world, members or their families would update personal data in a timely manner, but less than half actually do. So, each year, schemes could be working with outdated, incorrect personal information for over half of their members whose details have changed. In addition to this, data will stagnate if left for long periods of time.
Traditionally, pension providers have had very few required touchpoints with members – perhaps only when they reach retirement, which means data hygiene can be left to worsen over long periods of time. However, with a major shift to digital and a more demanding member base seeking improved customer service and return on investment, the landscape has become far more competitive. The introduction of the Pensions Dashboard will also see an uplift in pension consolidation.
With many new retirees potentially having had no contact with their pension provider since policy inception, there’s a high probability that personal details will have changed in the interim, including vital address and contact details. Without a data cleanse, reconnecting with members and encouraging active engagement, providers also risk losing profitable customers to other schemes.