Pension communications is often not giving members the confidence to plan for retirement, according to research from agency Like Minds, part of Independent Governance Group.
Like Minds’ No Member Left Behind report, based on a survey of over 2,000 UK workplace pension scheme members, found that almost half (44 per cent) of members cannot recall receiving a pension communication in the past 12 months and, of those who can, just 21 per cent took the action it prompted.
While 72 per cent of members say they understand their pension and 61 per cent want to learn more, just 53 per cent feel confident planning for retirement, suggesting pension communications are not meeting the demand for support and pointing to a serious pension confidence gap.
The report findings also showed that members want communications that feel relevant to them. While 71 per cent say communications should be designed around their lives, needs and circumstances, only half (50 per cent) believe the communications they receive meet the needs of people like them, and just 40 per cent say they feel tailored to their own circumstances.
Jeremy Petty, director at Like Minds, says: “The pensions confidence gap is one of the primary issues plaguing our sector and will continue to loom as an impending disaster if not properly addressed. Members are clearly eager to learn more and engage with their pension schemes and retirement – giving us a real opportunity to close the gap through better support and connection.”
Additionally, 42 per cent of members expressed that they would turn to their employer to learn more about their pension or retirement.
