DB pension schemes could risk poorer member outcomes and engagement if they fail to offer a high-quality member experience as they approach endgame, according to a report by Hymans Robertson.
The ‘Excellence in Endgames’ paper from the consultancy includes findings from a survey of 1,000 DB scheme members. Results showed that while three quarters (75 per cent) of members feel they understand their pensions, gaps in members’ knowledge and understanding exist. A quarter (26 per cent) reported that they lack confidence in making pension decisions and one in seven (14 per cent) said they were unsure about options presented to them.
Laura McLaren, head of DB scheme actuary services at Hymans Robertson, says: “Member experience should sit at the centre of a well-run scheme. When schemes offer meaningful support and communicate well, members feel informed and confident.
“Regardless of a DB scheme’s ultimate endgame path, whether a scheme is running on or planning to buy out, it’s vital that trustees put the member experience at the heart of their planning.”
Even though in the survey 59 per cent of members said they always read the information they receive about their pension, 29 per cent only do so sometimes and 6 percent never. In addition, 5 per cent don’t recall receiving any such information. Additionally, almost one in five members don’t know where to find information about their DB scheme.