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Video Even in well-run schemes, member engagement can be difficult to sustain. Without regular, accessible touchpoints, members can drift – leaving them unclear on what they have and what it means for their future.
Financial literacy can be a difficult and nuanced topic to manage, but a pension is a vital part of it, and members need to understand what theirs will do for them.
Member engagement is even more important in the modern era. As pension management moves online and accessibility improves, trustees need to ensure that scheme members are adequately engaged so they have full access to all information as and when they need it. Let’s explore how to engage pension scheme members and the best ways to do so.
Why schemes need to engage members
A well-run pension scheme isn’t just about accurate administration behind the scenes – it’s about members who understand what they have and feel confident about their retirement. Members want to ensure that their pension contributions are being correctly managed. This is, after all, necessary for future financial health and a comfortable retirement. Yet, only 25% of men and 11% of women describe themselves as “very confident” in their retirement savings and planning, but this could be different if they were adequately engaged. For DB schemes with the tools and processes to deliver real clarity, that’s a gap worth closing.
The Pensions Regulator is clear on this point: sending information to members isn’t enough. The measure of good engagement is whether members genuinely understand their benefits, feel equipped to make informed decisions, and are supported towards better retirement outcomes. That requires a shift from passive, scheduled communications towards active, ongoing engagement strategies – ones that meet members where they are and give them what they need, when they need it.
When members are genuinely engaged, the difference is tangible. They understand how their scheme works and are more likely to use it to its fullest advantage. They will hopefully make more sound financial decisions, such as contributing more and making fewer last-minute decisions, all while planning realistically for their retirement.
Good engagement is also necessary for reduced risk and good compliance. If members are not adequately engaged, they can easily misunderstand their benefits and can raise additional complaints or disputes. In turn, this can then divert administrator attention away from where it actually needs to be. Good engagement isn’t just better for members; it makes schemes easier and more efficient to run.
Pension regulators in the UK require good communication from schemes to members. Proving that the scheme delivers true value helps to build trust and confidence and proves to regulators that schemes are doing their due diligence to protect their members’ pension savings. The expectation is no longer simply meeting the minimum standard; it’s showing that engagement is a genuine priority, not a tick-box exercise.
What are the disadvantages of not doing so?
Lower member engagement in pension schemes will carry disadvantages and potential consequences. These can include:
Administrative burdens
Lower engagement often means that members will be less informed about their pension benefits. Not only will they not know what benefits they may have, but they may also be unaware of where to find such information.
It is therefore quite likely that pension administrators may spend too much of their valuable time assisting users who have trouble accessing their accounts. Rather than focus on issues that need to be prioritised, they have to deal with an influx of basic queries and access issues that members should be able to resolve independently. For in-house DB scheme teams already managing stretched capacity, that’s a pressure worth addressing.
Lack of confidence
When members feel disconnected and disengaged from their pension, confidence suffers in managing it. They will be more inclined to just let it sit without taking advice or the necessary steps from their end to ensure it is in the best possible state.
They may leave decisions too late, or take inappropriate annuity options. Meanwhile, engaged members will be confident in understanding the options available to them and will hopefully be able to transition more smoothly into retirement.
For DB scheme members, where the decisions can be complex and the consequences long-lasting, that confidence gap really matters.
How to engage pension scheme members
With this in mind, trustees and providers need to be clear in their tactics on how to engage their scheme members. The best ways to do so include:
Make information accessible
The easiest way to engage members is simply to make the information easy to access. The direction of travel across the industry is firmly towards self-service and real-time access, with tools like pensions dashboards creating new opportunities for members to engage with their pension on their own terms. A pension app like Mantle’s My Pocket Pension gives one such platform that gives members a way to explore and find any relevant information they may be searching for. Amongst users from one of our customers (pilot study) who adopted our app, 87% found it easy to check their benefits, and 92% chose the app over our web portal.
Offer self-service
Give power to your members to make accessing their information as frictionless and as automated as possible. Self-registration and service via QR codes prevent the need for endless emails and password resets. They should be able to find the information they need to know on their own, whether this is via AI or browsing.
Provide a wide variety of educational formats
DB pension schemes are complex, and a single annual statement isn’t enough to keep members informed. Regular, accessible communications in a wide variety of educational formats will ensure members can and do learn about how their pension works. Videos, informational blogs, and regular communication via mediums such as email, In-app messaging and SMS communications can all work together to present new information and easily digestible data to an audience of all literary levels.
Don’t let your members become disengaged
Disengaged DB pension scheme members are not simply drifting along and letting their money accumulate with no clue what is happening. As challenging as it might be to engage members, it is the responsibility of trustees and administrators to ensure that all involved truly understand what is happening with their savings.
It all starts with the right platform. Consolidating member data and communications, and self-service tools into one easy-to-use accessible place prevents key messages and information from slipping through the gaps.
Mantle’s pension platform provides everything needed for robust pension management, from an accessible and simple interface for those involved with management through to a clean and modern application for members to access and use.
Start a conversation with our experts today, and let’s discuss how we can transform your approach to pension management to better facilitate pension scheme engagement among members.
For further information on member engagement and Mantle’s My Pocket Pension, visit our website or watch My Pocket Pension in action.
