Most pension providers are keen to do more to reflect the growing diversity of scheme members but many are still relying on standardised communications.
This is according to an audience poll from a webinar hosted by LCP, Independent Governance Group (IGG) and Smart Pension.
It found that while most providers still use one-size-fits-all communications, around two-thirds want to do more to reflect the changing makeup of their membership, and one in five have already taken steps to recognise diversity.
The webinar discussed retirement challenges for women from ethnic minority backgrounds, based on the report A Glimmer of Light on the Horizon. The research is based on focus groups with women of Indian, Pakistani, Bangladeshi, Sri Lankan, Black African and Black Caribbean backgrounds.
It showed that younger women were more likely to work, have higher education and aspire to financial independence.
It also showed that there was a strong appetite from participants to learn about pensions. But many expressed mistrust of pensions, uncertainty about tax relief and confusion over what happens to their savings when changing jobs. Some preferred to save in property, business ventures, gold or community-based schemes, which they viewed as more tangible and under their control.
The research recommends that pension providers and trustees engage a diverse membership through multiple channels and trusted voices. It also mentioned simplifying messaging, avoiding jargon and reaching members where they already seek financial guidance, including community networks and faith-based centres.
LCP says the findings show that providers still have a big opportunity to tailor communications and support for the UK’s diverse workforce, which could improve engagement, trust and retirement outcomes.
LCP principal Shayala McRae says: “It’s promising to see the industry wanting to do more. These discussions encourage us to listen, reflect and focus on what works, as well as what may have been overlooked when engaging with diverse member groups. The next step is to turn insights into practical actions that improve the experience for these members.”
IGG trustee director and head of DC Priti Ruparelia says: “There isn’t a one‑size‑fits‑all approach to member engagement. That’s why it was important for us to hear directly from women about the information they need, the channels they trust and how they want to be communicated with. Taking the time to understand those preferences helps us design engagement that will be more likely to deliver better outcomes.”
