One in five DC members aged 55 and over have started using L&G’s Guided Retirement Planner in its first year, according to the firm.
The planner was launched ahead of the FCA’s targeted support framework and built using member insight, data and behavioural science. It delivers personalised support in real time, adapts to individual circumstances and breaks complex retirement decisions into simple steps using tailored behavioural nudges.
L&G reports a 50 per cent reduction in members facing retirement shortfalls after adjusting their plans. Two-thirds of users are building a retirement plan, a third have completed one and one in five have taken action, including consolidating pension pots, entering drawdown or purchasing an annuity.
The tool has been extended to younger DC members, with a third of users now pre-retirement and an average age of 42. More than half have started building a plan, and a third have completed one, supporting earlier action to close future savings gaps.
L&G CEO, DC & Workplace Savings Paula Llewellyn says: “The boundary between advice and guidance is evolving, and the introduction of targeted support next year is an important step in helping our members get the right support. For clients, the Planner provides an opportunity to enhance and personalise the support available to members. Our goal is to make guidance and advice work hand in hand by combining accessible digital tools that drive better and lasting engagement at scale, with deep behavioural insight.
“As an industry, we tend to focus on actions that are easy to measure. But we’re aiming not just to track engagement, but to change behaviour and improve outcomes. The strong response we’re seeing, including from those many years away from retirement, shows how combining technology with our lifetime savings expertise can turn awareness into meaningful action.”
