UK – [3 January 2025] – Cartwright, the pension specialist for defined benefit and hybrid schemes, urges trustees to act now ahead of the looming Pensions Dashboard staging dates to avoid unnecessary costs, protect member benefits, and ensure a smooth transition to their endgame strategy.
All UK pension schemes within the scope of regulations will be required to connect to the Pensions Dashboard. The first staging dates are set for April 2025 for large schemes initially which will then filter down to small schemes until 31 October 2026.
Connecting to the dashboard brings significant costs, particularly for smaller schemes, who are likely to be most affected. Initial setup fees for small and medium schemes range from anything between £30,000 to £100,000, in addition to ongoing maintenance fees based on membership numbers.
Julie Yates, Director of Administration at Cartwright, commented: “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.”
Yates added: “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.”
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