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Are your clients’ members saving enough for retirement? Using data can help them understand who’s on track to meeting their retirement goals – and help them pivot their benefits strategy.
Just over a third (37%) of people think they’re saving enough for a comfortable retirement, according to Standard Life’s Retirement Voice 2023 report.
That means most people aren’t confident that they’re putting enough money away for their future.
Our insights also show that managing finances in general is weighing on people’s minds, with 1 in 5 (18%) saying they’re unable to focus on other things. And 1 in 10 (8%) have needed to take time off work.
It’s clear that financial worries are impacting people’s wellbeing – both inside and outside of work.
The good news is that employers are in a great position to support their people’s financial wellbeing, particularly through their workplace pension offering. Indeed, having a plan for retirement – such as saving into a pension – is a key part of feeling financially well.
However, it’s difficult for employers to know how many of their members are on track for the retirement they want.
That’s where access to meaningful data from their pension provider can make a world of difference – both to their members and their reward strategy.
The power of using pension provider data
For your clients, utilising data from their pension provider removes the guesswork. It could help them gain insights into how members are interacting with their pension scheme, allowing them to spot poor engagement levels, low retirement savings, or even missing beneficiary details.
Using this data allows your clients to create a benefits strategy based on what members really need, and what could help them achieve their retirement goals. That means they can build a strategy that pivots depending on an individual’s circumstances, and dial up areas of support where it’s needed most.
At Standard Life, we built our Client Analytics platform to give employers actionable insights into how their members are engaging with their pension. We listened to clients and members to understand the key barriers that prevent members from engaging with their pensions, and what data and tools could help overcome them.
Here are a few ways that Client Analytics could help your clients:
Identify where members are projected to fall within RLS
Client Analytics incorporates data from PLSA’s Retirement Living Standards, allowing your clients to see at a glance where members are projected to fall within each RLS band.
That means they can support those who are most at risk of falling into the ‘minimum’ or ‘below minimum’ bands. Plus, they can get suggested next steps to help them take action quickly, such as delivering targeted Ready to Go campaigns or providing financial wellbeing support.
Compare against industry benchmarks
Not only can your clients see where members fall within each RLS band, they can also see how this compares against industry norms.
This built-in benchmarking can help them understand if they’re lagging behind, and if they need to review their benefits strategy to better align with members’ needs.
Discover how members are engaging with their pension
Client Analytics allows your clients to get key insights into member behaviour, including how often they engage with their pension, which channels they’re using (mobile or dashboard), and what actions they’re taking. They can also segment data by filters like pot size or number of years to retirement, to help them uncover any trends or gaps.
Understanding member behaviour allows your clients to see where engagement is low or falling. That way, they can tailor and target communications to specific groups – and get those engagement levels up.
Segment data by gender to focus communications
Clients told us that they wanted to understand more about how they could help tackle the gender pension gap. We’ve made it so all data points within Client Analytics can be split by gender, giving employers a clear view of where they may need to focus their engagement efforts.
For instance, your clients could use this data to ramp up their communications to women who’ve taken a career break, when pension savings generally take a dip. They could create a campaign to help members decide if they should make extra contributions when they return to work.
Ultimately, data from their pension provider is key to helping your clients understand their members better, so that they can build a benefit strategy that helps more people get on track for the retirement they want.
For more information on financial wellbeing, including resources on how you can help support your employees, take a look at our Financial Wellbeing hub and read our articles.