Andrew Phillips
Recent research has highlighted growing concerns about financial preparedness for retirement. A report conducted by YouGov found that 57% of UK adults are not confident that they have enough time to save for their pension.
Many individuals feel uncertain about their ability to retire comfortably, with widespread anxiety about having sufficient funds to support themselves in later life. As these concerns intensify, we must acknowledge a need to ensure pension members have access to the tools and information necessary to help them make informed decisions about retirement, and the onus should be on schemes to enable this.
Greater engagement also enables members to assess whether they can increase their contributions, which can significantly enhance their retirement savings over time and lead to improved financial security in later life.
Improving pension understanding through technology
Pension communications have a reputation for complexity and financial jargon. The result? A disengaged member base unaware of their options.
Industry attitudes are changing, however, as member engagement and improved financial education become a central focus. An appetite for continuous improvements from forward thinking schemes, coupled with advancements in digital solutions are now helping to bridge the gap, providing members with clear, accessible and personalised insights into their retirement savings.
Using tailored digital content, pension schemes can now present information in a way that is easier to digest, helping members understand their current position, projected retirement income and the actions they can take to improve their outcomes.
Video is at the forefront of this shift in communication channels. When North East Scotland Pension Fund shared video annual benefit statements to their members, they saw an 80% increase in engagement, when compared to traditional postal channels.
The role of personalised digital engagement
It’s these traditional communication methods, like paper statements and lengthy reports, that so often fail to engage pension members effectively. They can be costly, too.
Heywood’s Pension Pulse report highlights that 9.44% of a typical scheme’s addresses on record will be wrong. For schemes with 20,000 members, that equates to more than £7,000 wasted on every single mailout of communications material to the wrong addresses.
Hyper-personalised video messaging has emerged as a powerful tool in retirement planning by the early adopters. By integrating individual data, they’re using videos to simulate various retirement scenarios, helping members visualise the impact of different contribution levels and investment choices. This approach not only demystifies complex financial concepts but also empowers members to make proactive decisions about their retirement planning.
One of the significant advantages of digital technology is its scalability. Pension schemes can now deliver consistent, high-quality communications to thousands of members simultaneously. This mass personalisation ensures that each member receives information tailored to their circumstances, enhancing engagement and fostering a sense of individual attention.
The issue of low engagement in pensions is well documented, with many individuals feeling disconnected from their savings. A technology-led approach to pension communication can play a key role in reversing this trend, equipping members with the knowledge and confidence to take control of their financial futures.
Sharing digital content also represents a significant opportunity for schemes to ask members to help check the accuracy of their data. This will help reduce the administrative cost by reducing waste, whilst encouraging engagement.
The future of pension engagement
As member expectations increase and regulatory landscapes change, the adoption of digital solutions will be crucial. Enhancing communication through personalised, engaging content is a key step towards improving retirement outcomes.
The future of pension engagement is digital. Heywood’s technology empowers schemes to deliver personalised, effective communication at scale—helping members take control of their financial futures. Explore how our solutions can transform engagement for your scheme.
Case Studies: Real-world applications
London Borough of Barking & Dagenham Pension Fund
The London Borough of Barking & Dagenham Pension Fund sought to enhance member engagement, particularly among demographics traditionally less responsive to standard communications. By implementing personalised video content through Heywood Video Engage, the Fund transformed its outreach strategy. Within the first month, over 1,600 members registered and actively engaged with the platform. The in-house team at Barking & Dagenham was on hand to assist with members’ queries, helping them get online in no time. Member feedback has been resoundingly positive, with the user-intuitive nature of the platform helping them navigate to where they need to be. This initiative not only improved member understanding but also led to significant savings on postage costs.
North East Scotland Pension Fund (NESPF)
The North East Scotland Pension Fund (NESPF) aimed to increase engagement with their annual benefit statements. By adopting Heywood Video Engage, NESPF delivered personalised video content to their members, simplifying complex pension information. This approach resulted in an 80% increase in member engagement with the annual benefit statements. Members appreciated the approachable and easily digestible format of the information, leading to a better understanding of their pension benefits.
