Our Head of Business Development, David Lunt, explores how technology is the key to helping members take charge of their savings and why we all play a part.
83% of employees in a workplace pension scheme value their pensions, which is great. But not all staff have fully grasped their worth or made the link as to why they personally need to save.
So, what’s next? Our goal – as pension providers, employers, and advisers – is to help employees understand the value of saving for their future and to support them with taking those all-important first steps.
During lockdown, something miraculous happened… More of us were becoming tech whizzes, using technology to bank, bake and keep in touch with loved ones.
What does that mean for pension savers?
They could now, with a bit of encouragement, find accessing their pension online an easy and simple way to manage their valuable pension pots.
We have over 5 million members at The People’s Pension and so know that once our members have taken that first step of setting up their Online Account, they’re much more likely to remain engaged with their pension savings.
Eventually, managing their pensions online will become second nature, which means that members can start to engage with bigger issues around levels of savings, government tax benefits and planning for retirement.
A simple solution for employers
Our communications toolkit is a great way for employers to help their staff understand the value of their pensions digitally. Filled with template letters, posters, guides, videos etc, employers can easily share useful information to boost staff engagement.
By way of example, The Banks Group used our communications toolkit and increased online registration to an impressive 63%. They arranged on-site drop-in meetings to show employees how to log on and explained what they can do with their Online Account.
According to The Banks Group’s payroll manager, employees now feel in control.
Now’s the time to engage with savers
Since the coronavirus pandemic, some savers might’ve missed important changes by pension providers that could have positive outcomes to their pensions.
For example, we introduced a rebate on the management charge – a benefit that’s already helped 1.3 million of our members save a little bit more. So, finding positive messages that highlight value for money now, when many have been dealing with reduced incomes in the last year, could come as welcome news and help to reinforce the importance of saving.
Support from advisers
Advisers have a clear role to play here too, working closely with their employer clients in support of their employees. They can help members with knowing how to:
- understand their savings
- optimise their pension pots by knowing about charges
- recognise the value of a well-run default fund.
It’s time to use technology to connect people with their savings. Let’s help savers see the value in their pension and take responsibility for their money. It all starts with that first step.
What to know more?
Check out our communications toolkit or contact us on 0333 2301 309.
This article was written when we were B&CE, before we changed our name to People’s Partnership in November 2022.