Marvin OnumonuThe Pensions Regulator (TPR) has launched a new data strategy aimed at improving pension schemes, benefiting savers, and boosting the economy.
This move challenges schemes to elevate data standards to create efficiencies, foster innovation, and reduce regulatory burdens.
Research found that Open Banking has contributed £4bn to the economy, aiding people in better money management, while better data practices in pensions could have similar benefits.
Lisa Allen, director of data services at TPR, said: “The world is undergoing a data revolution, and we want the pensions industry to capitalise on this — delivering more effective and efficient services, sparking innovation in service provision, and enabling savers to better manage and engage with their pensions.
“Today we have set out a blueprint to make this vision a reality and will now be working across the whole industry to drive consistent, coherent and, where possible, open standards for data on metrics that matter.”
Allen added: “This will mean higher expectations of the pensions industry, but also more modern data practices which will reduce regulatory burdens and enable more effective market competition.”
TPR research revealed many schemes still hold data non-digitally, causing inconsistencies, increased costs, and security risks.
TPR said it would set clear data standards, ensure data collection supports good saver outcomes, and modernise data collection methods.
Additionally, it plans to create an internal data marketplace linking to the Government’s National Data Library and collaborate on data accessibility.
A working group will also be formed to enhance digital tool use in pensions.
The strategy encourages schemes to adopt new technologies, such as artificial intelligence (AI), aligning with the Government’s AI Opportunities Action Plan to improve efficiency and saver outcomes.
