IFAs call for new approaches to engage younger savers as pension expectations evolve

• Nearly three quarters (74%) of IFAs say providers need new ways to engage younger generations
• Almost two thirds (63%) believe support should start earlier to help savers make better retirement decisions
• Over half (51%) say providers should play a more active role in supporting members in retirement
• 51% warn poor administration and service is a key driver of switching

Pension providers may need to adapt how they engage younger savers and support members across the full retirement journey, according to new research¹ from People’s Pension².

Nearly three quarters (74%) of independent financial advisers (IFAs) say defined contribution (DC) providers need new ways to engage younger generations, reflecting growing concern that traditional approaches  may not fully connect with those at the start of their savings journey.

That challenge extends beyond initial engagement. Almost two thirds (63%) of advisers believe providers should do more to help savers make informed decisions earlier, highlighting the importance of support well before retirement comes into view.

Expectations also continue into later life. Over half (51%) of IFAs say providers should play a more active role in helping members manage their money once they retire, underlining the need for greater support as more people move from saving into drawing an income.

When asked what DC pensions should offer, advisers highlight the need for practical, accessible tools that support better decision-making. Digital member platforms (41%), improved data and reporting (39%), and integrated retirement and decumulation tools (38%) are among the most cited priorities, alongside more personalised communications (34%).

The findings come as People’s Pension calls on the industry to move beyond traditional communication approaches and adopt new ways of engaging savers earlier in their journey. This includes reaching audiences in more relevant, everyday contexts and making pensions easier to understand and act on.

Stuart Reid, Distribution Director at People’s Partnership ,said:

“What this research shows is that expectations are continuing to evolve. Advisers want to see support start earlier in the savings journey and continue through retirement, alongside practical tools and reliable service that help members make informed decisions at each stage.

“This is very much in line with what we are seeing in our recent webinar series, Pension Talk. Whilst in the past younger employees were often less likely to participate in pension discussions, as they felt the core questions were more relevant to colleagues nearing retirement, that is now changing.

“We are seeing much stronger interaction and participation from younger employees, along with a growing understanding of the importance of getting started early. That will have a meaningful impact on their long-term outcomes, and it is encouraging to see.”