Pensions Dashboards systems must scale rapidly to handle demand

09 May 2024

Pensions dashboards ecosystem

While the official connection deadline for over 3,000 pension providers, holding approximately 71 million eligible pension records, to link with the Money and Pensions Service’s (MaPS) Pension Dashboard isn't until 31st October 2026; the Pension Dashboard Programme (PDP) has made significant progress in establishing the central digital architecture to connect policyholders with their pensions.

Once finished, the entire pensions dashboard ecosystem will encompass websites enabling users to locate and access pensions, referred to as Qualifying Pensions Dashboard Services (QPDS). This will be supported by advanced systems for user identification and authentication, as well as a central infrastructure to facilitate search requests and register located pensions. Finally, the technology responsible for storing pension data will be managed either by providers or third-party Integrated Service Providers (ISPs); MoneyHub has an excellent diagram showing all of this complex technology.

Earlier this month, the enabling legislation for Qualifying Pensions Dashboard Services (QPDS) by His Majesty’s Treasury was given the green light. This move paves the way for major providers such as Standard Life to commence building their own 'commercial dashboards'. Nonetheless, developing a QPDS is a significant endeavour, suggesting that the MaPS Dashboard will likely be the sole option available to consumers by the final Connection Day in two and a half years' time.

The new Pensions Minister, Paul Maynard, reiterated his dedication to Dashboards, urging companies to prepare their data for Dashboards during a speech at the PLSA annual investment conference last month. Within the next month, Paul Maynard is expected to officially remove the Pension Dashboard Programme (PDP) from the project 'reset' it underwent nearly nine months ago. Additionally, the full connection timetable was published just before Easter and the Secretary of State for Work & Pensions, the Rt Hon Mel Stride, is scheduled to approve the PDP's Data Standards shortly.

These data standards set out specifications for transmitting essential data from the central PDP 'Find' service to pension schemes. They also detail how pension scheme data should be sent back to Dashboards for viewing. Moreover, these standards clarify the data fields necessary for a 'data match' with providers' policy records, ensuring positive identification.

Schemes need to balance maximising matches while safeguarding against breaches by defining their matching criteria. This includes using verified fields like first name, surname, date of birth (in a specific format), and current address. Additionally, optional non-verified fields such as National Insurance number, previous address, email address, and mobile number can enhance the likelihood of confirming a match.

Pensions Dashboards 'Connection as a Service'

The Pensions Minister's focus on preparing data for the dashboard is crucial. However, beyond ensuring timely data cleanup by all schemes, attention must shift to promptly providing accurate 'confirmed match' data to users, regardless of request volume. It's widely acknowledged that for dashboards to meet user expectations, they must deliver precise and current pension information quickly.

To meet this demand, Dunstan Thomas Imago Connect, our Pensions Dashboard 'connection as a service' ISP solution, has prioritised developing a solution that surpasses processing speed targets for both 'Find' and 'View' requests. These targets aim to find pensions in under sixty seconds (preferably under fifteen seconds) and allow users to view located pension data in under ten seconds (with a recommendation of less than two seconds). Additionally, Imago Connect ensures pensions are registered in the PDP's Register Resource in under 15 seconds.

We've meticulously crafted Imago Connect to ensure that all data in transit remains not just up to date but also highly secure. Each component of our solution is engineered as a dynamic, scalable service capable of expanding according to demand, while securely storing all data in an ISP data vault.

The key lies in our ability to swiftly access and transfer accurate data, even for thousands of users simultaneously. Scalability is paramount, especially considering the expected surge in volume into schemes via the MaPS Pension Dashboard in the initial three months of service. Drawing from experiences in other countries, it's likely that the majority of volume will eventually consist of 'View' requests as various commercial dashboards enter the market and start promoting themselves to customers. Many individuals will probably access their pension details through the provider's dashboard most familiar and relevant to them.

Peak retirement era means high volumes of Pensions Dashboards searches

It's crucial to recognise that we're currently experiencing what can be termed as the 'peak retirement' era in the UK. By the mandatory connection date in late 2026, the Baby Boomer Generation will span ages between 63 and 80. Despite the State Pension age rising to 67 and individuals, on average, extending their working lives into their 60s, nearly 700,000 people each year are estimated to contemplate retirement. They'll be looking to rediscover dormant pension pots and evaluate their total Estimated Retirement Incomes (ERI).

Furthermore, research indicates that only about one in 10 of these individuals regularly consults with a financial adviser. Therefore, for many, the PDP cannot come soon enough. It's poised to become a vital tool for retirement income planning, potentially benefiting up to half a million people annually for years to come. Studying the usage findings from pensions dashboards in the Netherlands, Denmark, and Sweden, we've learned that pension policyholders across all age groups tend to use their country's dashboards to monitor their savings progress. Interestingly, the more savings they have accumulated, the more frequently they tend to check in.

Looking at it from another perspective, the Office for National Statistics reports approximately 22.6 million eligible members who could potentially access the MaPS Dashboard once it launches. It's conceivable that up to one-third of this total, about 7.5 million people, might log in within the first few days alone! If just 10 per cent of this number decides to log in on Day One after the launch, it could lead to 750,000 users submitting a find request within the initial 24 hours. Furthermore, if a quarter of this group logs on during the peak 'out of business' hours internet usage period, typically between 7-9 PM, this would result in nearly 1,600 find requests per minute for that two-hour period! Such a large volume of requests poses a significant load on any website.

Recent consumer research conducted by Interactive Investor reveals that two-thirds (66 per cent) of working-age UK residents possess more than one pension pot, with 15 per cent having four or more. This amounts to nearly 38 million records that must be searched, matched, and registered on the Pensions Dashboard systems within 60 seconds (although the recommended target is 15 seconds).

These figures are somewhat simplified. Requests are likely to be sporadic, and the per centage of motivated users logging onto a Dashboard in the initial weeks may be lower than anticipated. However, it's still crucial for the entire pensions dashboard system to effectively handle such significant demand, especially if it attracts attention from influencers like Martin Lewis. It's worth noting that when Martin Lewis promoted the then-new Government Check Your State Pension service, the surge in hits caused the service to crash just a year and a half ago.

Handling Demand for the PDP

Given the potential for a large number of people relying on their chosen Dashboard to plan their retirements, the technology must provide accurate and up-to-date pension information as a fundamental starting point. Disappointing consumers with inaccurate valuations or 'possible matches' that require verification will have negative repercussions for businesses. Even worse, users encountering crashed Dashboards or failure to retrieve view data, indicated by the endless spinning browser wheel, could severely damage the industry's reputation. Any providers failing to deliver precise and timely data matches and pension valuations will suffer reputational harm and possibly sanctions.

Conversely, if users have a positive experience with these Dashboards—perhaps discovering more savings than they realised or obtaining an accurate combined Estimated Retirement Income (ERI) for the first time—it will enhance providers' and advisers' reputations. This positive user experience presents a significant opportunity for providers and advisers to assist newly engaged and informed retirees in optimising their retirement incomes. The advice or guidance provided will need to occur 'off dashboard'. However, it's evident why some major providers, such as Standard Life, have already announced their intention to develop their own Pension Dashboard. Pension Dashboards present the best opportunity in a generation for both providers and advisers to engage or re-engage with their customers. They can help focus individuals on planning for retirement promptly and guide them toward optimal retirement outcomes.

This presents a significant technical challenge for the pension industry, and scheme trustees must ensure they have a solution in place to guarantee that member data is accessible to dashboards securely and efficiently.

Previous Article Dunstan Thomas Products Contact Us