Almost 34 per cent of companies, or one in three, agree that their defined contribution (DC) pension scheme needs to increase member engagement and communication across a variety of features, according to new research from HSBC Master Trust.
Over half, or 54 per cent, of the senior decision-makers that sponsor DC schemes who were polled think that monitoring and measuring engagement is a crucial area for improvement. Additionally, 41 per cent of respondents emphasised the necessity for interactive member communication tools.
The personalisation of member communications and advice on pension scams were also mentioned as focal areas for improvement by around 38 per cent of respondents.
According to a study done with 400 top employer DC decision-makers, the major ways to gauge and track member engagement are through frequent polls of members and forums open to all members or just a select group of members.
DC sponsors were asked to rate their programme on a wide range of communication and engagement aspects by HSBC Master Trust. The percentage of sponsors that think their DC scheme needs to be reviewed for a variety of communication and engagement issues is displayed in the table below.
HSBC Master Trust CEO Alison Hatcher says: “Deeper scheme member engagement is an important driver of better member outcomes in support of long-term savings and retirement goals. It’s refreshing to see that scheme sponsors believe improvements in member engagement are a clear priority.
“HSBC Master Trust’s vision is focused on innovation with an absolute commitment to serve the evolving needs of employers, pension savers and retired members. Part of that includes a joined-up financial wellbeing and pensions journey for members, including a holistic retirement savings and benefits platform which is digital but backed up by personalised support.”
