Pension professionals expect AI-driven solutions to improve engagement, helping members make more informed decisions around retirement.
The research, conduced at a recent Society of Pension Professionals webinar, found the majority of attendees (62 per cent) said they thought AI would play a part in solving this engagement challenge, but stated that approbate guardrails need to be in place to address the potential risks.
Of the remaining attendees half (19 per cent) said that they thought AI would be a “core” part of the solution, with the same proportion took the opposite view, saying they did not think it would solve the engagement issue.
Attendees were also asked which change could most improve retirement decision making by pension scheme members.
Over a third (37 per cent) said the biggest improvement would be “simplified choices and communications”, while a quarter of (24 per cent) said “earlier and more frequent engagement” would be most impactful.
Meanwhile, one in five (20 per cent) felt that “more personalised guidance” could be key, with13 per cent highlighting the importance of “lower cost advice solutions”. Finally, 6 per cent responded that “implementing dashboards and small pot consolidation” could most improve member decision making.
SPP member and chair of the event Priti Ruparelia, who is also trustee director and head of DC at the Independent Governance Group, says: “Ahead of the introduction of default pension benefit solutions and targeted support, these results highlight a growing consensus across the industry that improving retirement outcomes will require a combination of clearer communication, earlier engagement, and smarter support for members.
“The AI polling was particularly revealing, with over 80 per cent indicating it could play an important role in closing the member engagement gap.
“While AI may not be the whole answer, and its rollout must be balanced with any risks, it is increasingly seen as part of the toolkit for improving member engagement and retirement outcomes.”
