But the tide is finally turning, and what’s coming isn’t just an update—it’s a total architectural rethink.
The democratisation of pensions tech
The big shift we’re seeing isn’t just about faster processing or prettier portals—it’s about the democratisation of technology. We’re moving from a world of monolithic, one-size-fits-all admin systems to a flexible ecosystem of microservices and specialist tools that do one thing exceptionally well.
Gone are the days when a single provider tried to do everything—data, automation, communications, analytics, member engagement—all wrapped up in one sprawling platform. These systems are creaking under the weight of modern expectations. They were built for a different era, and it's showing.
Today, we’re seeing a new breed of pensions technology: agile, API-friendly, modular. They’re lighter on their feet, faster to implement, and—crucially—built for continuous evolution. Want to plug in a best-in-class comms engine? Easy. A purpose-built ID&V solution? Done. A niche AI model to automate tricky exception handling? No problem.
AI is leading the charge—but not alone
AI might be the headline act, but it’s just one player in the new pensions-tech ensemble. And despite the buzz, it’s not all chatbots and member nudges. The real power of AI lies in its ability to plug the gaps that traditional systems can’t handle—like real-time data analysis, predictive insights, and automated triage for complex queries.
But let’s be clear: AI doesn’t work in isolation. It needs clean data, secure infrastructure, and human oversight. And it’s only as good as the systems it integrates with. That’s why we’re seeing AI flourish in modular, service-based environments where it can be embedded into the right part of the process, not bolted onto the side of a 20-year-old admin platform.
Innovation is no longer the preserve of the few
This is where the democratisation piece really kicks in. You no longer need a multi-million-pound budget or a huge in-house dev team to innovate. Thanks to cloud-native architecture, open APIs, and off-the-shelf digital services, smaller schemes and mid-tier providers can access the same tools as the big players.
It’s levelling the playing field—and that’s great news for members and trustees. It means better digital experiences, faster response times, smarter decision-making, and more human-centred comms—regardless of scheme size or legacy infrastructure.
What this means for trustees and pension managers
If you’re still being told that a monolithic system is your only option, it might be time to ask some difficult questions.
- What’s the long-term strategy for technology debt and innovation?
- How easy is it to integrate best-in-class services?
- What’s the timeline for adopting AI in meaningful, operationally embedded ways?
- Are you locked into a tech stack that’s holding you back?
Future-proofing your scheme isn’t about ripping out what works—it’s about building an ecosystem that can flex and grow with you. That might mean layering modern solutions over legacy core systems, or it might mean replatforming entirely. Either way, the days of "all-in-one or nothing" are over.
A final thought
The pensions industry doesn’t need more grandstanding about AI or digital transformation. It needs pragmatic, modular innovation that meets people where they are—and gets things done. The future isn’t monolithic. It’s micro. And it’s already here.
Garry Wake, Managing Director – Trafalgar House
