9 May 2019
Intellica, the independent provider of data management and business change services, has
said that with innovative new savings vehicles being developed and traditional pension
structures increasingly left behind, the industry should take the opportunity to ‘future proof’
its data to adapt with innovative market solutions.
Garreth Hirons, Head of Pensions at Intellica, commented: “DB schemes increasingly
winding up or becoming closed to new members means the industry has been forced to
innovate – to do less with more and safeguard pensions as a sustainable and sufficient
method of saving for retirement. Not all new savings vehicles will be suitable for all
schemes however, and a variety of options, such as CDC, have already begun to emerge.
Despite the absence of a clear ‘one size fits all’ solution, schemes must still ensure they are
prepared for future structural changes or transitions, and there are two aspects at the heart
of this process – member outcomes and data.
“While many have been discussing the importance of good data, far fewer have truly put
this into practice. New structures – like CDC – call for more frequent and in-depth
touchpoints to ensure accurate data is held on members, particularly around contributions
and target benefits. Pensions must adapt to meet evolving member needs – platforms like
open banking and dashboards show that this shift is already underway. Schemes should
take the opportunity to not only cleanse and review their data, but to ‘future proof’ it to
appeal to any additional opportunities in the pipeline. Those who do will be well placed
when these structures are introduced.”
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