Majesco’s New Report Exposes the Pitfalls of Outdated Pension Systems.
A recent thought leadership report from Majesco, the leading provider of cloud-native, AI-native software for the insurance and retirement industries, highlights the urgent need for modernization in retirement and pension administration. The report, titled “Technology Trends Shaping Retirement and Pension Administration,” emphasizes the importance of leveraging advanced technologies to streamline and fortify these complex systems.
The report specifically addresses the shortcomings of traditional pension systems, which often struggle with data management, scalability, and regulatory compliance. **70%** of respondents in Majesco’s survey cited modernization as a crucial priority for their organizations. This sentiment is echoed by Rick Steinbrecher, CEO of Majesco, who stated, “The retirement and pension industry is on the cusp of a technological revolution, and organizations that fail to modernize risk being left behind.”
What this means for administrators and beneficiaries is a more streamlined, efficient, and secure experience. Modernized systems enable real-time data analytics, improved compliance, and the ability to scale with ease. For instance, AI-powered automation can help reduce errors, minimize administrative burdens, and optimize investment strategies.
The report also touched on the growing significance of pension risk transfer (PRT), which involves the transfer of pension liabilities from sponsors to insurance companies or other third-party providers. Majesco’s research suggests that PRT is becoming increasingly popular as companies seek to mitigate the financial risks associated with pension obligations.
In addition to modernization and PRT, the report explores other technological trends shaping the retirement industry, including the adoption of cloud-native and AI-native technologies, and the integration of data analytics and IoT sensors. As the industry continues to evolve, one thing is clear: those who fail to adapt and modernize risk being left behind. **By 2028**, Majesco predicts that at least **75%** of retirement and pension administrators will have migrated to cloud-based systems.
