The 1,000 (+) days of delay has shifted the landscape, compelling these trusts to revise their strategies and adjust their course.
The original intent of using the Dashboard as a primary tool for pension fund consolidation was, and still is, strategically sound. It was expected to facilitate easier movement and consolidation of pensions, offering master trusts an opportunity to simplify and streamline the process for their members. This, in turn, would have allowed them to challenge the dominance of the larger, more established consolidator-focused companies.
In our rapidly evolving world of technology, a delay of over three years is substantial, almost tantamount to an era. Given the absence of a regulation-driven consolidation tool in the Dashboard, master trusts must independently devise strategies to consolidate members' pensions.
This unexpected twist of events has thus opened a new chapter in the industry's evolution, a chapter where adaptability, proactiveness, and innovation will determine the new leaders in pension fund consolidation.
Proactive communication has emerged as a key strategic element in this new landscape. It will become paramount for master trusts to hold their ground against the digital savvy consolidation companies gaining momentum in the market. Harnessing multiple channels of communication, including social media, will allows trusts to reach their audience much more effectively - challenging consolidator-focused companies on their own turf.
Looking beyond traditional communication methods, master trusts should consider expanding their channels to include platforms like WhatsApp, Telegram and online live chat services. These tools offer immediacy, responsiveness, and direct communication with members, presenting an opportunity to bridge the information gap that often exists in this complex industry. Real-time assistance can now be a tap away and it’s what the consumer is used to. We can ‘live chat’ with pretty much anyone these days – be that for our Amazon orders, travel arrangements, banking, even our food orders - why shouldn’t we expect the same with our pension.
It's also a great time for master trusts to cast a critical eye over their member portals. The member portal is often the first point of interaction for members; thus, it plays a crucial role in member satisfaction and trust. An intuitive, user-friendly portal can significantly influence a member's perception of their pension fund and increase the probability that members will consolidate their pensions in one master trust.
Now is a great time to check if these platforms are fit for purpose or whether they could be updated, revamped or enhanced to offer improved, seamless user experiences.
Additionally, the time could be taken to focus some attention on creating effective educational tools. The complexities of pension consolidation often leave members feeling overwhelmed and confused. Through comprehensive educational resources, master trusts can empower their members, aiding them in understanding and navigating these complexities. This move not only enhances member experience but also strengthens the bond of trust between the member and the trust.
However, in the pursuit of short-term adaptations and improvements, master trusts must not lose sight of the longer-term objective - complying with the data requirements of the Pension Dashboard Program. It's a delicate balance to maintain - staying agile and innovative in the present, while keeping an eye on the future regulatory landscape.
By seamlessly blending innovation, education, proactive communication, and meticulous planning, master trusts can turn the delay of the Pension Dashboard Program from a setback into a valuable opportunity.
Jaco Wasserfall, CEO, PensionSmith
