Pensions administration systems….yesterday’s tech?

Nov 11, 2016

Maybe a bit of an unfair headline, but it’s fair to say that the heyday of (trust based) pensions administration systems has probably passed. Consolidation, poor outcomes, lack of investment, inflexible pricing and an industry resistant to change has meant that most pensions admin systems are starting to show their age.

In the age of tablets, smartphones, digital first ecommerce, clouds (does anybody reading this really know what that buzzword truly means?) a dusty old pensions admin system running on a dedicated piece of kit in a corner somewhere, last updated 5-10+ years ago looks like an antique. I mean who still has an iPhone 3G? (Apple last week marked the iPhone 4 as ‘vintage and obsolete’).

Even the underlying technology of some of these admin systems is probably complicated and expensive compared to what it needs to be.

Add to that, what business really wants to be forking out a king’s ransom biennially to ‘upgrade’ their kit…who last noticed that an app updated itself on your iPad? No? I’d like my business software to work like that too. Please?

OK, Apple and Google have massive reach and deep pockets, but I believe there’s plenty of ways to make running pensions admin software smoother, reduce cost, keep our users and members happier, safe and better serviced.

With over 84% of respondents to a recent survey of in-house administered schemes, outsourced schemes, independent trustees and TPAs (undertaken on behalf of ITM) agreeing that pensions administration software pricing models have not changed since the 1980s there is clearly a lack of innovation and customer choice.

I believe the industry has to address this dusty, unloved elephant in the room.

ITM are looking at this seriously… shaking up the way pensions software is sold and delivered, revisiting how to give members the information they want, to cut cost and processing time, and deliver better service.

It’s time for some new thinking…

As seen on Jonathan Hawkins LinkedIn post: https://www.linkedin.com/pulse/pensions-administrations-systemsyesterdays-tech-jonathan-hawkins?trk=prof-post

Jonathan Hawkins Client Development Manager

SIMILIAR NEWS

Pensions dashboards Pensions dashboards Aug 27, 2020 Defining data for dashboards... Sharing basic data with a centralised dashboard to give individuals a much clearer picture of what they’ll get in retirement. That sounds simple enough. The problem
Child Trust Funds Child Trust Funds Jul 16, 2020 Automatic enrolment from 18 and the green recovery…do child trust funds fit in this puzzle? In 2017 the AE review suggested, amongst other things, that automatic enrolment starts at 18. We’re
DB Consolidators DB Consolidators Jun 11, 2020 Data quality is key to DB consolidation access The UK’s top independent pensions data consultancy, ITM, has warned that trustees will have limited options when it comes to evaluating alternative
Processing...
Thank you! Your subscription has been confirmed. You'll hear from us soon.
ErrorHere