Pension technology systems across the globe are under pressure. Organizations face growing expectations to modernize their operations, improve member experience, and ensure security. Often, these expectations are growing faster than budgets and staffing levels.

As organizations look ahead, it’s clear that overcoming growing challenges will be key to future success. In this post, I will explore some core issues public pension systems face today, from technical debt to talent shortages, and introduce several key trends impacting pension organizations. I will be attending the upcoming Public Retirement Information Systems Management (PRISM) conference from April 13-16 in Memphis, Tennessee. I welcome the opportunity to speak with you in person about these insights.

The Challenges of Technical Debt

For many public pension organizations, technical debt has accumulated over decades. This is the cost of maintaining and operating sub-optimal systems and processes. Technical debt shows up in many forms: outdated applications, rigid architecture, fragmented infrastructure, and even gaps in IT staff skill sets.

Each layer of technical debt slows an organization down. It makes integrating new technology more difficult, increases the risk of errors, and limits the ability to respond to evolving member expectations or regulatory changes. Over time, this burden can grow so large that it may prevent the organization from meeting its core objectives.

Even well-intentioned fixes — like workarounds or short-term upgrades — can increase technical debt if not part of a larger, strategic approach. As the debt piles up, so does the risk of failing to meet organizational objectives.

IT Skill Gaps and Retention Struggles

One of the most pressing challenges facing pension organizations today is finding and keeping the right IT talent. Emerging technologies require specialized skills — from cloud infrastructure to data security — but these roles are not only difficult to fill, but they are also expensive and often underutilized in small or mid-sized organizations.

For example, cybersecurity professionals capable of performing in-depth penetration testing or system audits are in high demand. However, for many pension organizations, these are not daily needs. Hiring someone full-time may not be practical, but outsourcing every function isn’t cost-effective either.

This talent shortage has become one of the biggest barriers to adopting modern solutions. Without skilled professionals to guide implementation or manage complex systems, organizations can’t evolve as effectively as needed.

The Combined Challenge of Talent Shortages and Technical Debt

These two challenges — technical debt and IT workforce gaps — are intertwined. Without the internal resources to maintain or upgrade systems, organizations accumulate more technical debt. That debt, in turn, requires more advanced skills to resolve, creating a cycle that restricts growth and innovation.

Breaking this cycle requires new solutions design, implementation, and support approaches that reduce dependency on scarce skill sets while improving agility and performance.

Future Trends: What’s Next for the Pension Industry

While the challenges are real, the industry is not standing still. Across the country, leading pension systems are adopting new strategies that directly address these pain points. Some of these trends include:

• Enhanced data management and governance – ensuring accuracy, security, and interoperability by creating data sets that can be relied upon.
• Hosted, cloud-based solutions – reducing long-run infrastructure costs while unlocking access to specialized talent.
• User-centric digital platforms – improving member experiences and staff productivity through automation and real-time tools.

Each of these trends is helping pension organizations reduce technical debt, operate more securely, and modernize with confidence.

Conclusion

While the path forward may be complex, it’s far from impossible. With the right strategies and technologies, pension organizations can overcome the twin challenges of technical debt and IT talent shortages.

Solutions like Neospin™ are designed with these challenges in mind — offering modern, scalable platforms that reduce technical complexity and empower organizations to serve their members better. For more information, visit our website or send me a note to chat.